The American business community is eagerly awaiting clarity on the future of the African Growth and Opportunity Act (AGOA) as U.S. industries call for its reauthorization. Businesses are looking for strong signals of U.S. support for renewal to ensure long-term predictability and assurances that trade preference to African countries will continue. This is particularly crucial given the 5 to 10-year investment horizons across many sectors.
Right now, American industries are nervous that AGOA could suffer a lapse like the Generalized System of Preferences (GSP), creating major disruptions for trade in Africa and spurring private sector leaders to prefer trade and operating options with China. Some additionally argue that AGOA renewal should include reforms that can increase the utilization of the agreement and address new needs that will take time to properly integrate into a revamped AGOA. Furthermore, nearshoring in the context of AGOA presents an opportunity for American businesses to establish closer manufacturing ties with African nations, potentially unlocking mutually beneficial trade and economic growth.
This event is being held as a critical precursor to incorporating the voice of the U.S. business community into this year’s AGOA Forum. This event is made possible by the generous support of Prosper Africa.