Dear Chairmen Smith and Crapo and Ranking Members Wyden and Neal:
The Chamber strongly urges Congress to reauthorize the African Growth and Opportunity Act (AGOA) before it expires on September 30. Swift reauthorization of AGOA will strengthen mutually beneficial U.S.-Africa trade ties and avoid the harm to U.S. geopolitical relationships that the program’s termination would entail.
For a quarter century, AGOA has been the cornerstone of U.S.-Africa commerce and an effective tool for promoting market-based economic growth. Thousands of American companies across the country benefit from their commercial partnerships under the program. It provides duty-free access to the U.S. market for a carefully selected range of products from sub-Saharan African countries that meet the program’s eligibility requirements. Its benefits are thus limited to countries that have established or are making progress toward a market-based economy; the rule of law; elimination of barriers to U.S. trade and investment; protection of intellectual property and property rights generally; combatting corruption; and support for internationally recognized human rights. AGOA supports U.S. interests and values across the African continent.
The threat of AGOA’s imminent expiry creates uncertainty for U.S. companies and raises questions across Africa about the reliability of American businesses as partners. Securing AGOA’s renewal will help assuage those concerns and incentivize investment decisions to deconcentrate and diversify supply chains away from China.
In the past, Congress has renewed AGOA and other preference programs with broad bipartisan support, and we remain optimistic this Congress can follow suit. The Chamber also urges Congress to renew the similar Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE) Act and the Haiti Economic Lift Program (HELP) Act, which will also expire on September 30. The Chamber stands ready to work with you to preserve these essential trade programs.
Sincerely,
John Murphy
Senior Vice President and
Head of International
U.S. Chamber of Commerce
