Constraints to the Embrace of the African Growth and Opportunity Act (AGOA) by Beneficiary African States

Abstract

The African Growth and Opportunity Act (AGOA) aims at liberalising trade between Africa and the United States of America (US). Since 1 October 2000 when the Act became effective, the US has annually chronicled the performance of AGOA in a way that gives it a success rating. The assessment is based on an increased volume of trade between the US and Africa. A scrutiny of the so-called success story shows that this has been premised on transactions that were not strictly on AGOA trade items. Because African states have been severely constrained by AGOA conditionalities, they are unable to fully embrace AGOA to make transactions to be judged by trades in core AGOA commodities. This being so, AGOA cannot be said to be doing well. This article evaluates these constraints.

AFRICA INSIGHT Vol 42 (1) – June 2012