In the budget sent to the US Congress earlier this month, the Obama Administration backed a full renewal of AGOA, calling for lawmakers to enact a 15-year extension.
The current version of the trade legislation, which expires on 30 September, provides about 6,000 African products with preferential quota- and duty-free access to the US market. The bill expands upon the US Generalised System of Preferences (GSP), a set of formal exceptions from the WTO’s most-favoured nation (MFN) principle, which allows developed countries to offer developing countries preferential treatment on specific goods.
During the US-Africa leaders’ summit held last August, leaders agreed on the importance of a long-term renewal of the scheme and also pledged to work together to increase its utilisation by African countries. US Trade Representative Michael Froman had then declared that the reauthorisation of the scheme would serve as an opportunity to “lay the foundation for AGOA 2.0” based on the “lessons” learned so far. Read more. Source | International Centre for Trade and Sustainable Development