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AGOA for the People

By White House Fellow Martha Esparza MD, Special Assistant Claire Blanton, Trade Research Specialist Lynette Johnson and Director for African Affairs Jeremy Streatfeild

 

From empowering workers and small business owners to fostering deeper U.S.-sub-Saharan Africa partnerships, AGOA is more than a trade preference program.  Since its enactment in 2000, the African Growth and Opportunity Act (AGOA) has made a positive difference for millions of Africans and has transformed the way the United States and sub-Saharan Africa interact on trade and economic issues. But just as importantly, AGOA has had enormous convening power, which was on full display during the AGOA Forum last month in Washington, D.C., hosted by the Office of the United States Trade Representative (USTR). 

 

Ambassador Tai leading a discussion with a bipartisan congressional delegation attending AGOA.

Ambassador Tai leading a discussion with a bipartisan congressional delegation attending AGOA

 

A committed community of U.S. and African policymakers, civil society, labor, and business leaders gathered under the theme “Beyond 2025: Reimagining AGOA for an Inclusive, Sustainable and Prosperous Tomorrow,” and discussions were focused on how to make the program more effective and responsive. In particular, USTR’s engagement throughout the week was focused on exploring ways the United States and AGOA beneficiary countries can collaborate to drive more inclusion, including by engaging with a broader set of stakeholders.  In line with our vision to use trade for the common good, USTR did what it does best – expanding the table to share stories, create connections, and explore substantive inclusive, worker-centered trade policy.

 

Expanding the Table—African Diaspora, Women, and Community 

 

Ambassador Tai with Dr. Perkins at the White House

Ambassador Tai with Dr. Perkins at the White House

 

To ensure that more people benefit from increased trade, we must expand the table so that those who have been historically left out of the trade policymaking process can help shape our work.  That is why USTR partnered with the International Black Women’s Public Policy Institute (IBWPPI) and invited women labor leaders, entrepreneurs, and civil society from across the African Diaspora for a dialogue at the White House.  With the goal of connecting and advocating for Black women globally, IBWPPI was an ideal and exciting co-convenor to amplify fresh, important voices on trade.

 

The U.S. Trade Representative Ambassador Katherine Tai and IBWPPI President and CEO Barbara Perkins stressed the importance of amplifying more diverse voices from across sectors, especially those of African Diaspora women.  They also underscored the importance of reimagining AGOA to better serve the needs of working communities in Africa and elsewhere.  Several participants shared how trade has opened doors and how, for generations, women traders have influenced and shaped cultural and economic landscapes.  But participants also highlighted barriers that are inhibiting women and underserved groups from enjoying their fair share of economic growth.  Throughout the conversation, “kindness” was a common thread as the basis for using AGOA—and broader trade policies—to drive a race to the top for more people across our societies.

 

A very engaged audience at the White House for the dialogue with IBWPPI

A very engaged audience at the White House for the dialogue with IBWPPI

 

Inclusive Partnerships for Sustainable Economic Growth and Shared Prosperity

 

Small and medium-sized enterprises (SMEs) are the engines of our economies, in Africa and the United States. For instance, in the United States, SMEs are responsible for half of all jobs and serve as innovators across sectors, continually bringing new ideas to fruition. In Africa SMEs represent 80% of all jobs. That is why Ambassador Tai and U.S. Small Business Administrator Isabel Guzman hosted a reception at the Urban Grape, an independent wine shop in Washington, D.C.’s historic Shaw neighborhood.  Not only is Urban Grape one of the top sellers of South African wine in Northeastern United States, owners are laser-focused on using wine to connect people and build community. 

 

The outside of Urban Grape

The outside of Urban Grape

 

Just as wine spans across sectors -- trade, small business, agriculture, hospitality, and environmentalism -- the evening was filled with wide ranging conversations on how AGOA can continue to bring people together. It’s because of trade between small businesses in Africa and in the United States that places like the Urban Grape are thriving and creating opportunities.  The gathering embodied the spirit of what is possible when we come together with broad, shared prosperity as the goal, where inclusion and equity are not just buzz words but tangible outcomes that change our society for the better.

 

Ambassador Tai and Administrator Guzman talking with guests at Urban Grape.

Ambassador Tai and Administrator Guzman talking with guests at Urban Grape

 

Reimagining Trade, Strengthening AGOA, and Looking Toward New Possibilities 


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USTDA Director Enoh Ebong during the AGOA Forum VIP Luncheon

 

Throughout the week, the themes of potential, solidarity, opportunity, sustainability, and growth were consistent responses of stakeholders when asked to describe AGOA in one word.  President Perkins said it best when she shared how AGOA encourages us to “dream big,” to think outside the box when it comes to engaging with overlooked groups, including Black women.  During the various events, it became apparent that we all want the same thing—for our people to flourish.  Not just those at the top, but all of our people, especially our workers and their communities. USTDA Director Enoh Ebong emphasized at her keynote remarks during the AGOA Forum VIP Luncheon “creating an inclusive, sustainable future for all of us is well within our collective capabilities. It means working together as equals. It means pulling together the right ecosystem of partners to generate measurable results and being accountable to the people whose lives and livelihoods depend on our meaningful collaboration.” To get there, we must bring more people into the economic fold and leave no one behind, and AGOA can continue to serve as a foundation between the United States and African countries to realize the tomorrow we want to craft together.

 

Two of the blog’s authors White House Fellow Dr. Martha Esparza (foreground) and Special Assistant Claire Blanton (background) with new friends at Urban Grape

Two of the blog’s authors: White House Fellow Dr. Martha Esparza (foreground) and Special Assistant Claire Blanton (background) with new friends at Urban Grape

Background on AGOA

The African Growth and Opportunity Act (AGOA) was enacted in 2000 and has since been at the core of U.S. trade and investment policy with sub-Saharan Africa.  AGOA provides eligible sub-Saharan African countries with duty-free access to the U.S. economy for over 1,800 products, in addition to the more than 5,100 products that are eligible under the Generalized System of Preferences (GSP) program.  To qualify for AGOA benefits, countries must annually demonstrate that they meet the eligibility criteria, including requirements that the country establish or make continual progress towards: a market-based economy; the rule of law, political pluralism, and the right to due process; the elimination of barriers to U.S. trade and investment; economic policies to reduce poverty; combat corruption and bribery; and the protection of internationally recognized worker rights. Countries may not engage in activities that undermine U.S. national security or foreign policy interests or engage in gross violations of internationally recognized human rights. In 2023, U.S. imports under AGOA (including the Generalized System of Preferences or “GSP” program) totaled $9.7 billion.  Currently, 32 countries are eligible for AGOA benefits.  

This year, the United States hosted the AGOA Forum with the mutually agreed upon theme, “Beyond 2025: Reimagining AGOA for an Inclusive, Sustainable and Prosperous Tomorrow” in Washington, D.C.  The AGOA Forum brought together the governments of the United States and AGOA-eligible countries, as well as representatives from key regional economic organizations, civil society, labor, and the private sector.  

The July 25 to 26 Ministerial program featured plenary sessions on the present and future of AGOA and U.S.–Africa trade and investment cooperation, as well as breakout sessions on various topics.  Building upon South Africa’s host year, the Forum was by a Civil Society and Organized Labor Forum and a Private Sector Forum.  In addition, Howard University’s Small Business Development Center (DCSBC), the Small Business Administration, and the U.S. Department of State hosted a Women and Youth Small and Medium Sized Enterprises Partnership and Networking Marketplace in which USTR participated.