AGOA Renewal Bill Introduced

Legislation to renew the African Growth and Opportunity Act trade preferences program has been introduced by Sens. Chris Coons (D-Del) and Jim Risch (R-Idaho).

The African Growth and Opportunity Act Renewal and Improvement Act of 2024 would provide a long-term extension of AGOA, along with improvements to the program’s eligibility criteria.

“This bipartisan bill aims to refine AGOA’s eligibility criteria, increase transparency, and hold US agencies accountable for their advice to the president,” Sen. Risch said. “This legislation will bolster Congress’ involvement in the eligibility process and oversight, demonstrating a strong commitment to AGOA. 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.”

Sixteen Year Extension

AGOA currently is set to expire next year.
The bill would extend AGOA until 2041. This long-term extension would offer businesses the certainty they need to increase investment in sub-Saharan Africa at a time when many firms are looking to diversify their supply chains away from China, according to the senators.

In addition, the bill would improve the program by encouraging sustainable development, regional integration and stronger relations between the United States and countries in the region.

The bill would:

• Extend AGOA by 16 years, pushing back the program's expiration from 2025 to 2041. The timeline mirrors the 16-year sunset provision included in the U.S.-Mexico Canada Agreement.
• Streamline the AGOA eligibility review process to ensure any enforcement action is timely, fair, and clearly communicated.
• Integrate AGOA with the African Continental Free Trade Agreement to support the development of intra-African supply chains.
• Incentivize AGOA beneficiaries to develop a “utilization strategy” to increase exports.