A bipartisan group of senators has unveiled a new bill aimed at extending the U.S. trade agreement with sub-Saharan Africa, which is set to expire next year.
Led by Senators Chris Coons, a Democrat, and James Risch, the top Republican on the Senate Foreign Relations Committee, the bill has garnered support from both sides of the aisle. Co-sponsors include Senators Dick Durbin, Michael Bennet, Chris van Hollen, Todd Young, and Mike Rounds.
The proposed legislation, obtained exclusively by Reuters, seeks to renew the African Growth and Opportunity Act (AGOA) for a significant 16-year period, extending through 2041. The bill is designed to assist countries in the region in implementing strategies to maximise the benefits of the programme.
One notable provision of the bill is the adjustment to eligibility criteria, allowing countries to remain within the programme even as their economic status improves.
Under the proposed changes, countries would undergo eligibility reviews biennially, rather than annually, as is currently the case. However, the U.S. president and certain congressional leaders would retain the authority to conduct out-of-cycle reviews as needed.
In the event that a country is deemed ineligible for AGOA benefits, the bill provides a range of enforcement options for the president, from partial to full termination of benefits.
Notably, the bill does not single out South Africa for an immediate out-of-cycle review, as previously proposed in a draft version introduced last November. Instead, it grants flexibility for such reviews while expressing ongoing concerns about South Africa’s activities.
Chairman of the Senate Finance Committee, Ron Wyden, has expressed support for renewing AGOA and intends to collaborate with relevant committees and members to develop a bipartisan, bicameral bill. President Joe Biden has also voiced his support for reauthorizing the pact, originally enacted in 2000. In 2022, AGOA facilitated duty-free entry of more than $10 billion worth of African exports into the United States, according to the U.S. Trade Representative’s office.
American business groups emphasise the importance of AGOA renewal for providing certainty to African countries, particularly amid global efforts to reduce dependence on Chinese manufacturing. However, a response from Senate Democratic Leader Chuck Schumer’s aide was not immediately available for comment.
