Ghana likely to miss 16-year-long trade benefits from AGOA as US plans pact extension to 2041
Ghana is likely to be excluded from the African Growth and Opportunity Act (AGOA) of the US as the country plans for its extension to 2041.
Initially passed in 2000, AGOA which seeks to extend duty-free access to the United States for about 40 sub-Saharan African nations, is scheduled to expire in 2025.
The anticipated 2041 new expiration date for the AGOA, marks a 16-year extension of the trade pact by the US.
The exclusion of Ghana from the AGOA will be premised on the assent or otherwise of the anti-LGBTQ+ Bill passed by Parliament in February this year by the President, Nana Akufo-Addo.
President Joe Biden terminated the eligibility for the benefits of the act for four nations last year due to their failure to meet Congress’s requirements regarding human rights and democracy.
Presently, about 12 African countries, including Uganda (which has recently passed an anti-LGBTQ bill into law), South Sudan, and Niger are ineligible for the U.S. AGOA trade in 2024.
“AGOA plays a significant role in U.S.-sub-Saharan Africa trade and investment, as well as in U.S. foreign policy… I encourage my colleagues to swiftly reauthorize AGOA and the next administration to pursue a broader, two-way strategy with Africa that goes beyond trade preferences and meets the needs of the 21st century.
“Over the past 24 years, AGOA has created jobs and economic growth in one of the fastest-growing regions of the world and created investment opportunities for American businesses.”
“The AGOA Renewal and Improvement Act are necessary to support continued economic development on the continent while further strengthening ties between the United States and partners in sub-Saharan Africa,” remarked Senators Jim Risch and Chris Coons who introduced the bill to extend the AGOA trade programme with sub-Saharan African nations until 2041.
Ashantibiz
