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UPSC Dictionary

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The Directive Principles of State Policy (Part IV) are non-justiciable but are 'fundamental in the governance of the country' under Article 37.

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UPSC Dictionary

African Growth and Opportunity Act

The African Growth and Opportunity Act (AGOA) is a piece of United States federal legislation (Public Law 106-200, Title I of the Trade and Development Act of 2000) that establishes a non-reciprocal trade preference program. It was signed into law by President Bill Clinton on May 18, 2000, with the purpose of assisting the economies of sub-Saharan Africa (SSA) and improving U.S. economic relations with the region. AGOA was created to spur market-led economic growth and development by providing SSA countries with expanded access to the U.S. market.

The mechanism works by granting eligible SSA countries duty-free access to the U.S. market for over 1,800 products, which is in addition to the more than 5,000 products already covered under the Generalized System of Preferences (GSP) program. Eligibility is determined annually by the U.S. President, requiring countries to make continual progress toward establishing a market-based economy, the rule of law, political pluralism, and eliminating barriers to U.S. trade and investment. A key provision is the "Wearing Apparel" or "Third-Country Fabric Provision," which allows certain textiles and apparel to be exported duty-free, even if the fabric is sourced from a non-AGOA country, particularly benefiting least-developed SSA countries. The program connects directly to the GSP program and is part of the broader U.S. initiative Prosper Africa.

The legislation was initially extended for 10 years until September 30, 2025, by the Trade Preferences Extension Act of 2015. The program lapsed on September 30, 2025, but was reauthorized retroactively through December 31, 2026, when President Trump signed legislation (H.R. 7148) on February 3, 2026. The U.S. House of Representatives also voted on a further extension until December 31, 2028 (H.R. 6500). The core mechanism of duty-free access remains, but the U.S. has recently stripped countries like Ethiopia, Mali, Guinea, and Burkina Faso of their eligibility due to violations of the AGOA Statute, such as human rights abuses and coups.

References

  • wikipedia.org
  • cbp.gov
  • trade.gov
  • msrcustoms.com
  • calchamber.com
  • ustr.gov
  • cfr.org
  • african.business
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