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Like the GSP, the African Growth and Opportunities Act (AGOA) and other preferential trade programs are founded upon the concept that mutually beneficial North-South trade offers a more certain and sustainable path to development than aid, and that preferences can help overcome the structural disadvantages that developing countries face. The four analytical sections that comprise this submission assess the AGOA program in progressively more specific levels. Section II addresses the overall relationship between poverty, trade preferences, and other instruments intended to promote economic development. The positive but limited impact of preferences can be seen in the utilization of the AGOA preferences, as reviewed in Section III. There are differing experiences according to country and sector assessed. The sectoral differences are examined more precisely in the next two sections, each of which address the United States International Trade Commission (USITC)’s stated intention to present case studies on cotton, apparel, certain chemicals, and cocoa. In Section IV the broader trends in United States imports of apparel, minerals, and other products from the region are reviewed. Section V turns to the question of whether AGOA preferences have helped beneficiary countries to upgrade their production and exports in hydrocarbons, cocoa, and cotton goods. Section VI concludes by providing specific considerations for the improvement of AGOA.

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The African Growth and Opportunities Act