Basu: AGOA needs mordernisation

The Africa Growth and Opportunity Forum held in Washington last weekend shed light on the importance of modernizing the African Growth and Opportunity Act (AGOA) and the challenges it faces in being extended beyond its current expiration in September 2025. The discussion at the forum centered around the potential impact of the upcoming U.S. elections on the renewal of the agreement, with the outcome dependent on the composition of the Congress post-elections. Joy Basu, Deputy Assistant Secretary at the Bureau of African Affairs, U.S. Department of State, emphasized the need for early reauthorization of AGOA and the importance of advancing conversations on modernizing the economic partnership between the United States and Africa. Basu highlighted two key achievements from the AGOA Forum - reaffirmation of the administration's support for AGOA reauthorization and progress in defining the elements needed for modernizing the agreement. Basu expressed optimism about bipartisan support for AGOA reauthorization in Congress, aiming for completion within the current session or at the latest by 2025. She acknowledged the low utilization of AGOA benefits over the past two decades and stressed the importance of increasing awareness among businesses and entrepreneurs about the products eligible for trade-free access under AGOA. Basu called for collaboration between the U.S. and African government partners to enhance capacity building and promote utilization through investment in infrastructure, education, and healthcare. The status of South Africa's inclusion in AGOA was a significant topic of discussion, with concerns raised about its eligibility. Basu noted that South Africa's position is under review, but highlighted the positive engagement between the South African delegation and U.S. partners. The eligibility review process will determine South Africa's continuation within AGOA, with active dialogue ongoing among the administration, South African government, and Congress. Regarding the potential impact of a change in U.S. administration on AGOA, Basu expressed confidence in the bipartisan support for the agreement, minimizing the likelihood of significant changes based on the presidential election outcome. She emphasized the importance of reauthorizing AGOA promptly to provide certainty for African and American businesses investing in the continent. In conclusion, the AGOA renewal and modernization efforts underscore the shared commitment of the U.S. and African partners to strengthen economic ties and foster sustainable growth. The dialogue initiated at the AGOA Forum sets the stage for continued collaboration towards a mutually beneficial future for trade and development between the United States and Africa.