FACT BOX WHAT IS AGOA?

A two-day US-sub-Saharan Africa Trade and Economic Cooperation Forum (The Sixth Agoa Forum) opens in the Ghanaian capital, Accra, today.

Here are some details on the AGOA legislation that underpins US trade with sub-Saharan Africa. * The African Growth and Opportunity Act (Agoa) was signed into law by former US President Bill Clinton in May 2000 as part of the Trade and Development Act of 2000.It granted sub-Saharan African countries that undertake economic reforms expanded duty-free access to US markets.* Agoa provides beneficiary countries in sub-Saharan Africa with the most liberal access to the U.S.market available to any country or region with which it does not have a Free Trade Agreement.* It aims to reinforce African reform efforts, provides improved access to US credit and technical expertise, and establishes a high-level dialogue on trade and investment in the form of a US-sub-Saharan Africa Trade and Economic Forum.* By creating tangible incentives for African countries to implement economic and commercial reform policies, Agoa aims to contribute to better market opportunities and stronger commercial partners in Africa for US companies.* Agoa has been in place for seven years, but while it has helped create jobs in some African countries, critics say it has not met its objectives, particularly as much of the growth has been in the oil sector, which traditionally creates few jobs, most of which go to skilled expatriates.* The first US-sub-Saharan African Trade and Economic Cooperation Forum took place in October 2001 with trade, foreign and finance ministers from 35 eligible sub-Saharan African countries.TRADE UNDER AGOA – In 2006, US imports under the African Growth and Opportunity Act (Agoa) were US$44,2 billion, 16 per cent more than in 2005.- Petroleum products continued to account for the largest portion of Agoa imports with a 93 per cent share of overall Agoa imports.With fuel products excluded, Agoa imports were US$3,2 billion, up seven per cent on 2005.- The top five Agoa beneficiary countries included Nigeria, Angola, South Africa, Chad, and Gabon.Other leading Agoa beneficiaries included the Republic of Congo, Lesotho, Kenya, Madagascar, Mauritius, and Cameroon.Nampa-Reuters* The African Growth and Opportunity Act (Agoa) was signed into law by former US President Bill Clinton in May 2000 as part of the Trade and Development Act of 2000.It granted sub-Saharan African countries that undertake economic reforms expanded duty-free access to US markets.* Agoa provides beneficiary countries in sub-Saharan Africa with the most liberal access to the U.S.market available to any country or region with which it does not have a Free Trade Agreement.* It aims to reinforce African reform efforts, provides improved access to US credit and technical expertise, and establishes a high-level dialogue on trade and investment in the form of a US-sub-Saharan Africa Trade and Economic Forum.* By creating tangible incentives for African countries to implement economic and commercial reform policies, Agoa aims to contribute to better market opportunities and stronger commercial partners in Africa for US companies.* Agoa has been in place for seven years, but while it has helped create jobs in some African countries, critics say it has not met its objectives, particularly as much of the growth has been in the oil sector, which traditionally creates few jobs, most of which go to skilled expatriates.* The first US-sub-Saharan African Trade and Economic Cooperation Forum took place in October 2001 with trade, foreign and finance ministers from 35 eligible sub-Saharan African countries.TRADE UNDER AGOA – In 2006, US imports under the African Growth and Opportunity Act (Agoa) were US$44,2 billion, 16 per cent more than in 2005.- Petroleum products continued to account for the largest portion of Agoa imports with a 93 per cent share of overall Agoa imports.With fuel products excluded, Agoa imports were US$3,2 billion, up seven per cent on 2005.- The top five Agoa beneficiary countries included Nigeria, Angola, South Africa, Chad, and Gabon.Other leading Agoa beneficiaries included the Republic of Congo, Lesotho, Kenya, Madagascar, Mauritius, and Cameroon.Nampa-Reuters