The African Growth and Opportunity Act.
The current version of the US African Growth and Opportunity Act (AGOA) expires on September 30. The legislation affords preferential (duty-free) and non-reciprocal access to US markets to 'eligible' sub-Saharan African (SSA) countries. Since its inception in 2000, AGOA has benefited a few SSA economies but largely failed to realise its potential as a major driving force in the continent's development.
Trade revenues for South Africa's neighbours would dip if it opts to revisit the regional customs duty sharing formula.
Pressure to protect political-connected industries, eg cement, will limit Nigeria's scope to offer 'reciprocal' trade benefits.
Progress on EU tariff reductions could temper the urgency of securing a new AGOA deal for agricultural producers Kenya and Ivory Coast.
