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AGOA

US kicks Uganda out of AGOA

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The United States has officially struck off Uganda and three other African countries as beneficiaries of the African Growth and Opportunity Act (Agoa), effectively ending Kampala’s ability to export certain commodities to the US duty-free.

In a decree dated December 29, President Joe Biden said he had “determined” that the four countries “do not meet the requirements” necessary to allow them to continue benefiting from the trade deal, effecting his earlier stated plans to delist them.

“Accordingly, I have decided to terminate the designations of the Central African Republic, Gabon, Niger, and Uganda as beneficiary sub-Saharan African countries for purposes of section 506A of the Trade Act, effective January 1, 2024,” read the statement by the US President.

In an October 2023 letter to the speaker of the US Congress expressing his intention to remove the four countries from the list of Agoa beneficiaries, Mr Biden said Uganda has “engaged in gross violations of internationally recognised human rights.”

This came after President Yoweri Museveni assented to the anti-gay law passed by the Ugandan lawmakers, which introduced serious repercussions, including life imprisonment or death, for same-sex relations in the country.

Read more in theeastafrican

Biden

Biden endorses Agoa extension for Africa

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United States President Joe Biden has endorsed the extension of the African Growth and Opportunity Act (Agoa) upon its expiry in September 2025.

This is after the White House urged Congress to address the matter in a timely fashion ahead of the annual Agoa meeting this year in South Africa.

The Agoa was established by Congress in 2000 and most recently re-authorised in 2015. The program provides tariff-free access to the US market for exports of goods from as many as 49 countries in Sub-Saharan Africa.

“I strongly support reauthorisation of the African Growth and Opportunity Act— a landmark, bipartisan law that has formed a bedrock for US trade with Sub-Saharan Africa for more than two decades… I encourage Congress to reauthorize Agoa in a timely fashion and to modernise this important Act for the economic opportunities of the coming decade,” said Biden in a statement.

“I am committed to expeditiously working with Congress and our African partners to renew this law beyond 2025, to deepen trade relations between our countries, advance regional integration, and realize Africa’s immense economic potential for our mutual benefit. In so many ways, Africa is the future – and so when Africa succeeds, the whole world succeeds.”

Some US senators had called on the Senate to prioritise extension of the legislation to expand economic opportunities with Africa.

The reauthorisation of Agoa past 2025  (More)

The EastAfrican

AGOA

U.S. to evict Gabon, Niger, others from AGOA programme

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Washington, Oct. 31, 2023: U.S. President Joe Biden said on Monday that he intends to end the participation of Gabon, Niger, Uganda, and the Central African Republic in the African Growth and Opportunity Act (AGOA) trade programme.

Biden said he was taking the step because of “gross violations” of internationally recognised human rights by the Central African Republic and Uganda.

He also cited Niger and Gabon’s failure to establish or make continual progress toward the protection of political pluralism and the rule of law.

“In spite of the intensive engagement between the United States and the Central African Republic, Gabon, Niger, and Uganda, these countries have failed to address United States’ concerns about their non-compliance with the AGOA eligibility criteria,” Biden said.

In a letter to the speaker of the U.S. House of Representatives, Biden added that he intends to terminate the designation of the aforementioned countries as beneficiary sub-Saharan African countries under the AGOA, effective Jan. 1, 2024.

He said he will continue to assess whether they meet the program’s eligibility requirements.

Launched in 2000, AGOA grants exports from qualifying countries duty-free access to the U.S. market. It is set to expire in September 2025, but discussions are already under way over whether to extend it and for how long.

African governments and industry groups are pushing for an early 10-year extension without changes in order to reassure business and new investors who might have concerns over AGOA’s future.

AGOA

Minister urges Nigeria to take advantage of AGOA to grow its economy

The Minister of Industry Trade and Investment, Otumba Adeniyi Adebayo says Nigeria must take advantage of the African Growth Opportunity Act (AGOA) to grow its economy.

The minister said this when he received the report of the Technical Committee on the Utilization of AGOA on Tuesday in Abuja.

AGOA is a United States Trade Act which significantly enhances market access to the US for qualifying Sub-Saharan African (SSA) countries.

Commending the members of the committee, Adebayo expressed satisfaction over the ability to provide a document that would enable Nigeria to benefit from the AGOA scheme.

“I am pleased that the time spent has enabled the delivery of a robust document aimed at improving the country’s prospect of benefiting from the AGOA scheme”

“Your committee was saddled with the responsibility of providing a quick impact intervention on AGOA implementation and to develop a streamline of six month wealth plan with the target of 500 million dollars export volume to the United States amongst others,” he said.

Adebayo said that effective implementation of the work plan would create more employment opportunities and generate wealth for Nigerians through increased non-oil export.

He said: “The production of the report and work plan marks the completion of the first phase of the task and there is still a lot of work to be done.

“I am confident in the capacity of this committee to place Nigeria among the top beneficiaries of the AGOA scheme before its expiry in 2025,” Adebayo said.

Earlier, the Co-Chairman of the Committee and Director of Trade in the Ministry, Mr Suleiman Audu, said the committee developed a work plan, a budget and the report within four weeks of its inauguration.

Audu who represented the Chairman of the Committee and Director-General, Nigerian Export Promotion Council (NEPC), Dr Ezra Yakusak, said the committee identified six focal sectors and products for the actualisation of the work plan across six geo-political zones.

According to him, they include; the agro-products, cosmetics based on shea butter and coconut oil extracts, textile and garments, processed food and beverages, leather and leather products and arts and craft.

“There is an increasing demand for them in the US market; there is huge production capacity and can easily be sourced.

“The products are covered under the AGOA eligibility products, the products are MSMEs inclusive; the sectors are supported by US Trade Facilitation Agencies.

“They have gained acceptability in the US market and the required standards are easily attainable by MSMEs and are cost effective”.

He added that the committee developed a work plan with eight proposed programmes and activities.

“The Committee developed a Work Plan with eight major proposed programmes and activities which are: increased awareness on AGOA, US market and export requirement of the Identified AGOA focal products.

“Others are strategic and effective media promotion of AGOA opportunities and focal products in Nigeria and the US; focal products exhibition and value chain development.

“It entails the mobilisation of quick access to grants and project finance, harmonisation of regulatory requirements with counterparts in the US, market access collaboration with the Diaspora (Roundtable).

“Strengthening of effective digital export facilitation/complaints desk and monitoring and evaluating ports and exporters warehouse,’’ Audu said.

Audu also said that an estimated budget of ₦590 million is contained in the report in line with the work plan.

The committee recommended that the Federal Government approves special intervention funds for the implementation of the work plan/budget and provision of funds/grants to exporters for optimal facilitation of AGOA export.

The committee also recommended the establishment of necessary contacts for efficient cooperation with US firms and organisations like the Food and Drug Administration and the US Department of Agriculture.

Others are the Consumer Product Safety Commission and Federal Trade Commission.

AGOAlogo-1

Nigeria inaugurates Committee on African Growth and Opportunity Act

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The Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, has inaugurated a technical committee on the utilisation of the African Growth and Opportunity Act (AGOA).

This is contained in a statement issued on Friday in Abuja by the Director of Press in the ministry, Mr Adebayo Thomas.

Thomas quoted the minister as saying “the committee is mandated to streamline a work plan on AGOA utilisation with a target export volume of 500 million dollars to the United States.

“Further, the committee will provide strategic direction on AGOA implementation, monitoring, and evaluation in the country,’’ Adebayo said.

According to the minister, maximising the benefits of AGOA has become critical for the country, especially given the abundance of natural resources.

“As one of Africa’s largest economies, Nigeria must capitalise on global economic integration by gaining duty-free and quota-free access to U.S. markets,’’ he said.

Adebayo urged members of the committee to take the task seriously and work toward its successful completion.

Earlier, Dr Evelyn Ngige, the Permanent Secretary of the ministry, acknowledged the efforts of various stakeholders in the implementation of AGOA in Nigeria.

While outlining efforts in validation and articulation of implementation strategies, Ngige said that inaugurating the committee was part of the ministry’s commitment to ensure that Nigeria takes advantage of AGOA which expires in 2025.

She also expressed the ministry’s commitment toward addressing challenges faced by Nigerian manufacturers and exporters in meeting labelling, packaging and product-specific standards.

Responding, the Co-chairman of the Committee, Dr Ezra Yakusak, the Executive Director/Chief Executive Officer (CEO), Nigerian Export Promotion Council (NEPC), commended the ministry for being proactive.

Yakusak promised that the committee on AGOA would deliver on its terms of reference.

According to him, when it expires in 2025, AGOA will have had bipartisan support for more than a quarter-century.

He said that it would have also deepened the commercial partnership between the United States and Sub-Saharan Africa.

AGOA

AGOA to stimulate Nigeria’s economic growth

The Nigerian Export Promotion Council (NEPC) has called on exporters to take advantage of the African Growth and Opportunity Act (AGOA) to stimulate the country’s economic growth.

NEPC Executive Director and Chief Executive Director, Dr Ezra Yakusak, said this at a sensitisation workshop on eligibility criteria and documentation for AGOA organised by the Council in Owerri on Monday.

AGOA is a legislation approved by the US congress on May 18, 2000 for a 15 year-tenure to assist the economies of sub-Saharan African countries by providing duty-free treatment to over 6,400 goods from the target countries.

Former President Barack Obama-led government however signed into law the Trade Preferences Extension Act 2015, extending AGOA and other critical US preference programmes by 10 years.

Speaking on the theme: ‘Leveraging on AGOA to Boost Nigeria Export to the US Market’, Yakusak, represented by a senior official of the NEPC, Mr Peter Njoku,  expressed disappointment that more than 20 years after the enactment of AGOA, Made-in-Nigeria products were yet to be seen in major malls in the US.

 ” With less than four years to the end of the AGOA Act, Nigeria’s non-oil sector must optimise the benefits of the legislation by leveraging on any available opportunity because there is huge potential in the US market,” he said.

 Speaking, NEPC’s Trade Promotion Advisor in Imo, Mr Anthony Ajuruchi, described the AGOA as a “great window of opportunity to increase Nigeria’s export to the US.”

 He urged operators of Micro, Small and Medium Scale Enterprises to take advantage of the AGOA to showcase Nigeria to the rest of the world.

Also speaking, the Imo State Commissioner for Commerce and Industry, Mr Simon Ebegbulam, restated the state government’s commitment to provision of an enabling environment for economic activities to thrive in the state.

 He added that the state government, in collaboration with the UN Industrial Development Organisation was producing an industrial policy that would recognise the comparative advantage of all local councils and their peculiar needs.

 Also, Mr David Aderibigbe, a resource person, urged exporters to increase their knowledge of quality and standard regulatory requirements as well as procedures for documentation of export products so as to maximise profit.

Mrs Amaka Onwumere, an exporter and  pharmacist, thanked the NEPC for organising the workshop and called on participants to put the knowledge garnered from the event to good use.