Tai Says Policymakers Need to Address AGOA Utilization
U.S. Trade Representative Katherine Tai, at a Dec. 2 Atlantic Council event on trade with Africa, said members of Congress should really dig into the long-standing African Growth and Opportunity Act preference program, in preparation for its reauthorization in 2025.
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Tai said that Congress and the administration need to grapple with the fact that utilization of AGOA in Africa is not what it could be. "We see there is so much economic value that is left on the table," she said. "What more can we be doing?"
"Let us also think about what comes after AGOA, and look at our existing toolkit -- what is fit for purpose?"
Tai was asked how trade could change between the U.S. and Africa so that African exports aren't so concentrated in raw materials.
The top No. 2, 4 and 5 AGOA countries exporting are not exporting manufactured goods -- Nigeria exported $1.4 billion, mostly oil; Ghana exported $324 million, mostly oil, cocoa powder and cassava; and Angola exported $300 million, all oil.
Tai said that dynamic needs to change, and that the U.S. should be thinking strategically about fostering supply chains in Africa, and that companies operating in Africa should be participating at many points along the supply chain, not just the low-value steps.
Secretary General of the African Continental Free Trade Agreement Wamkele Mene, who participated in the event by video feed, said he agrees, and said there needs to be productive capacity building assistance from trading partners.