When the United States decided to formalise its trade support for African countries, it called the enabling legislation the Africa Growth and Opportunity Act (AGOA). However, the Trump administration has made it so focused on benefits to the US that it is becoming the American Growth and Opportunity Act.
This is the conclusion of an analysis published by XA trade advisors, headed by Donald Mackay.
AGOA has been renewed until the end of this year, and will be renewed again after the US has “reformed” and “modernised” it.
The analysis, by XA’s Wongani Msiska, says AGOA is no longer being viewed primarily as a development instrument. It is increasingly being framed “as a strategic trade tool designed to advance American commercial, industrial, and geopolitical interests,” Msiska says.
The stated objective of the AGOA review is to ensure Agoa “meets the needs of American workers and businesses”, advances US “national security and economic security goals”, and creates a pathway toward more reciprocal trade arrangements.
“In other words, the debate is no longer simply about African access to the US market. It is increasingly about what the United States gets in return.”
Under an “America First” framework, preference programmes are unlikely to survive if they are perceived to benefit foreign exporters more than US producers, Msiska says.
“AGOA is now the American Growth and Opportunities Act,” the analysis concludes.
