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AGOA -2nd US-SSA Trade and Economic Cooperation Forum
The Africa Growth and Opportunity Act
(AGOA) forms part of the US Trade and Development Act signed by former US
President Bill Clinton on 18 May 2000. The Objectives of AGOA are to facilitate market-led
economic growth in Sub-Saharan African Countries and to achieve economic
self-reliance by:
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Strengthening and expanding the private sector in Sub-Saharan Africa, especially women-owned businesses
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Encouraging increased trade and investment between the US and Sub-Saharan Africa.
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Reducing tariff and non-tariff
barriers and other trade obstacles.
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Negotiating free trade areas.
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Establishing a US/Sub-Saharan Africa Trade
and Investment Partnership.
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Focusing on countries committed
to accountable government, economic reform and the eradication of poverty.
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Establishing a US/Sub-Saharan Africa
Economic Cooperation Forum.
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Continuing to support development
assistance for those countries in Sub-Saharan Africa attempting to build civil
societies.
The general trade benefits of the Act are:
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Institutionalises a process for
strengthening US relations with African countries and provides incentives for
African countries to achieve political and economic reform and growth.
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Offers beneficiary Sub-Saharan
African countries duty-free and quota-free US market access for essentially all
products through the Generalized System of Preferences (GSP) programme.
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Provides additional security for
investors and traders in African countries by ensuring GSPO benefits for eight
years.
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Eliminates the GSP competitive
need limitation for African countries.
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Establishes a US Sub Saharan
Africa Trade and Economic Cooperation forum to facilitate regular trade and
investment policy discussions.
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Promotes the use of technical
assistance to strengthen economic reforms and development, including assistance
to strengthen relationships between US firms in Sub-Saharan Africa.
Eligible Countries
36 countries of Sub-Saharan Africa are eligible for
tariff preferences under AGOA. These countries are:
Benin; Botswana; Cameroon; Cape Verde; Central
African Republic; Chad; Republic of Congo; Djibouti; Eritrea; Ethiopia; Gabon;
Ghana; Guinea; Guinea-Bissau; Ivory Coast; Kenya; Lesotho; Madagascar; Malawi;
Mali; Mauritania; Mauritius; Mozambique; Namibia; Niger; Nigeria; Rwanda;
Republic of Sao Tome and Principe; Senegal; Seychelles; Sierra Leone; South
Africa; Swaziland; Tanzania; Uganda and Zambia.
Trade and Investment in Mauritius under AGOA
Duty-free exports from Mauritius to the US under
AGOA in 2001 totalled $54 million. These exports represented 20% of Mauritius'
total exports to the US. There has been significant AGOA-inspired
investment in Mauritius. To take advantage of AGOA's textile and apparel
provisions, a Chinese firm has started construction of a $60 million cotton
yarn spinning mill, which will employ 300 local staff.
President George Bush signed amendments to AGOA, also
known as AGOA II which substantially expands preferential access for inputs
from beneficiary Sub-Saharan African countries. These amendments are
incorporated into law as Section 3108 of the Trade Act of 2002.
Technical Details
Designer : CASB Studio
Printer : House of Questa
Size : 36 x 36 mm
Perforation : 14
Gum : PVA
Paper : Crown Agents Watermarked
Sheet : 50 stamps set in 2 panes of25
Date of Issue : 15 January 2003
Denominations : Re1, Rs25
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