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Read-out of African Ministers
24 July 2024
We, Ministers welcome the bipartisan support in the US for AGOA and propose the following
improvements:-
Expeditious and long-term renewal
1. We express the importance of an expeditious renewal of AGOA with non-controversial
enhancements and amendments for a minimum of 16 years to provide the required
predictability and certainty to the trade and investments relationships between the two
sides and to address graduation side by side with the extension of AGOA to preserve
existing regional value chains. The renewal must be done by the end of 2024.
2. We stress the importance of retaining the third country fabric provision which has been
key to the success of Africa’s apparel industry, as well as the need to promote domestic
transformation in the context of regional value chains development.
Enhancing the utilization of AGOA
3. We note that the AfCFTA remains key in building regional and continental value chains
in Africa. We further recognise the role of RECs in advancing utilisation and encourage
the ongoing participation in advancing utilisation strategies.
4. We express serious concerns that the unilateral removal of AGOA eligible member
country will continue to lead to serious disruption of regional integration efforts on the
continent.
5. We emphasise the importance of collaborative efforts between the two sides and the
need for capacity building programmes to support African eligible countries to meet the
AGOA requisite standards.
6. We call upon the US Administration to simplify the current rules of origin and provide for
additional improvements for manufactured products, to enhance market access.
7. We commit to implement practical measures to address low-utilisation rate by
developing national and regional AGOA utilization strategies, including clustering,
awareness campaigns and Trade Fairs and call on the US to provide assistance in this
regard.
AFRICAN UNION UNION AFRICAINE
UNIÃO AFRICANA
UMOJA WA AFRIKA UNIÓN AFRICANA
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8. We underscore that U.S investment in Africa’s productive capacity is crucial to ensure
that AGOA achieves its intended objectives; therefore, we call upon the US
Administration to prioritize an investment led-trade strategy in its relations with African
countries.
9. We advocate for this investment-led trade strategy to include value-addition and
beneficiation of critical raw materials and minerals in Africa and urge for sourcing these
products directly from Africa, including incorporating the manufactured products sourced
from Africa’s critical minerals under the Inflation Reduction Act.
10. Call on the US Administration to provide tax and other fiscal incentives to US Private
Sector Operators to enhance the supply chain and beneficiation and African
industrialisation agenda.
11. We commit to ensure that within the first 3 years of the renewal we develop AGOA
utilisation strategies.
12. We call on both parties to establish appropriate mechanisms to support and monitor the
effective implementation of AGOA.
13. We urge the US Administration to invest in Africa’s productive capacity with a view to
increasing utilisation of AGOA through value-added product diversification including in
the high-tech sector.
AGOA Eligibility
14. We take note that the annual reviews, contribute to uncertainty and unpredictability, and
urge US Administration to adjust AGOA eligibility review from the current practice of
annual review to a three-year cycle, in alignment with other US preference schemes.
15. We call upon the US Administration to reassess the impact of annual and out of cycle
reviews, which reduces investor appetite.
16. We urge the US Administration to refrain from using non-trade considerations in
determining AGOA eligibility criteria and to ensure the developmental dimension of
AGOA program particularly in relation to infrastructure, industrial development, and
technology transfer.
17. We stress the importance of addressing graduation in order not to jeopardize the
achieved gains. A review of AGOA conditionalities should ensure the prioritization of
continued mutual benefits.
AGOA and the AfCFTA Nexus
18. We urge the US Administration to allow for cumulation with all AfCFTA signatories to
enable African Countries to meet AGOA Rules of Origin to ensure better utilisation of
AGOA.
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19. We call upon the US Administration to encourage US investors to take advantage of the
AfCFTA potential.
Role of the African Diaspora
20. We recognize the African and Afro-American diaspora as an important actor in the
advocacy efforts for a strong Africa-U.S economic partnership and as a key vector of
commercial exchanges on both the African and U.S sides.
2025 AGOA Forum
21. We agree on the Democratic Republic of Congo to host the 2025 AGOA Forum, and the
host commits to meet the AGOA Forum hosting requirements.
