U.S. Deputy Treasury Secretary Wally Adeyemo expressed his hopes on Thursday that Congress would extend a trade program allowing exports from eligible African countries to have duty-free access to the U.S. market. This program, known as the African Growth and Opportunity Act (AGOA), has been in effect for two decades and is set to expire in 2025. Speaking at the Reuters NEXT conference, Adeyemo emphasized the importance of extending AGOA, stating, “My hope is that Congress will act to make sure that we continue to have tools that allow us to deepen our trade with Africa.”
Adeyemo did not specifically endorse legislation proposed by Democratic Senator Chris Coons that would extend the program for 16 years to 2041. However, he mentioned that African countries are pushing for a 10-year renewal ahead of the 2024 U.S. election. President Joe Biden’s administration seeks the program’s reauthorization but has called for certain reforms.
More than $10 billion worth of African exports entered the United States duty-free under AGOA in 2022. Despite the program having bipartisan support in Washington, there are divisions on how to update it.
Adeyemo, who was born in Nigeria and raised in California, emphasized the need for economic reforms in Nigeria in order to attract more foreign direct investment. He mentioned that during his visit to Nigeria in September, U.S. companies operating in the country were pressing for reforms before increasing their stakes.
Adeyemo also highlighted the opportunities and challenges presented by Nigeria’s rapidly growing population, stating that U.S. firms could contribute to the country’s development.
This article was written by Andrea Shalal and edited by Michael Perry.
