Congressional Research Report Highlights Decline in AGOA Trade

A recent Congressional Research Service (CRS) report on the African Growth and Opportunity Act (AGOA) reveals a decline in U.S. trade with sub-Saharan Africa (SSA). In 2024, U.S. imports under AGOA totaled $8.0 billion, a 13% decrease from 2023. The decline reflects shifting trade dynamics, policy uncertainties, and changes in the global energy market.

AGOA, established in 2000, provides duty-free access to the U.S. market for eligible SSA countries. It aims to strengthen U.S.-Africa trade ties, promote economic growth, and encourage market reforms. However, trade under AGOA remains concentrated in a few sectors, particularly crude oil, which constituted 25% of AGOA imports in 2024 but has significantly declined since its 2011 peak due to increased U.S. energy production.

Non-energy imports, valued at $6.0 billion in 2024, included key sectors such as passenger vehicles ($2.4 billion), apparel ($1.2 billion), and agricultural products ($949 million). Despite some diversification, overall trade volumes have stagnated.

Congress faces critical decisions regarding AGOA’s future, as its authorization expires in September 2025. Proposals for reauthorization include extending the program, refining eligibility criteria, and encouraging regional trade integration. Meanwhile, the U.S. has struggled to advance reciprocal trade agreements, with previous negotiations with Kenya and the Southern African Customs Union failing to yield comprehensive agreements.

CRS Report [Link]