Agoa and AfCFTA synergy benefits Africa – AU
Cape Town – African Union (AU) Trade Commissioner Albert Muchanga says that the African Growth and Opportunity Act (Agoa) does not pose a threat to the African Continental Free Trade Area (AfCFTA). According to EWN, Muchanga said this while addressing delegates on Thursday, the first day of the Agoa Forum. He also dispelled concerns that the introduction of AfCFTA would... Read more → The post Agoa and AfCFTA synergy benefits Africa – AU appeared first on African Insider.
Cape Town – African Union (AU) Trade Commissioner Albert Muchanga says that the African Growth and Opportunity Act (Agoa) does not pose a threat to the African Continental Free Trade Area (AfCFTA).
According to EWN, Muchanga said this while addressing delegates on Thursday, the first day of the Agoa Forum.
He also dispelled concerns that the introduction of AfCFTA would lead to the United States (US) not renewing Agoa when it expires in 2025.
Muchanga said the two trade agreements could complement each other, resulting in more significant benefits for the region.
“They have been complaining to us that they cannot increase their investments across Africa because of the small, and fragmented markets.
Ambassador Albert Muchanga – African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals on day 1 of #AGOA2023 Forum lauding the theme “Made in Africa” calling for complete harmonisations and buy in on products from the African Continent #SABCNews pic.twitter.com/v27YPfyA9y
— Katlego Legodi (@KatlegoLegodi_) November 2, 2023
“Through the continental free trade area, we have defragmented our economies, so we have their call for a large market space,” the report quoted him as saying.
Approved by the US Congress in 2000, Agoa is the cornerstone of US economic and trade policy on the continent.
The pact offers duty-free access into the world’s largest economy for countries that meet democratic criteria assessed on a yearly basis.
#AGOA Amb Albert Muchanga, AU Commissioner for Economic Development, Trade, Tourism, Industry & Minerals, explains the position on calls for the renewal and extension of AGOA for ten year. He says if the offer is twenty years, Africa must be ready to accept it. #eNCA pic.twitter.com/Oxt5bTF6Sb
— Siphamandla Goge (@SiphamandlaGoge) November 2, 2023
It ends in 2025, and with little plan yet for any successor, talks are expected to revolve around a possible extension.
The AfCFTA, founded in 2018, offers US companies access to a vast market of over a billion people and a market worth trillions of dollars, addressing some of the shortcomings of Agoa.
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Compiled by Betha Madhomu
Additional reporting by AFP
The post Agoa and AfCFTA synergy benefits Africa – AU appeared first on African Insider.
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