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US ‘Trade Africa’ initiative to boost business for East African nations

In 2014, US clothing imports from sub-Saharan Africa reached $986 million, up nearly six per cent from 2013, as countries such as Lesotho, Kenya, Ethiopia and Tanzania participated in the African Growth and Opportunity Act (AGOA) program. The program expands the list of products which eligible sub-Saharan African countries may export to the United States subject to zero import duty under the Generalized System of Preferences (GSP).

While general GSP covers approximately 4,600 items, AGOA GSP applies to more than 6,400 items. AGOA came into law in 2000. It offers incentives for African countries to make efforts to open their economies and promote free trade. AGOA GSP provisions are in effect until September 30, 2015.

In June 2015 the US renewed the AGOA for another 10 years. The trade agreement will end in 2025. To build upon the success of the (AGOA), the US and its African partners launched the ‘Trade Africa’ initiative with the East African Community in 2013. This is a multifaceted cooperation agreement focused on compliance with WTO standards on trade facilitation, sanitary and phytosanitary measures, and technical barriers to trade.

The US is currently working to expand the ‘Trade Africa’ initiative to involve new partners, including Cote d’Ivoire, Ghana, Mozambique, Senegal, and Zambia.

 
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