On Monday, U.S. Trade Representative Katherine Tai said that her office is ready to sign a memorandum of understanding with African Continental Free Trade Area (ACFTA) countries to explore work on the next phases of the U.S.-African trade relationship.
At the Semafor Africa Summit, Tai stated that she sees chances to enhance the long-standing African Growth and Opportunity Act (AGOA) trade preference scheme, which is set to expire in 2025.
“The world that we’re living in today certainly has been transformed by significant events that we have experienced since 2015, the last time the program was reauthorized,” Tai said of AGOA. READ: Nigeria to Explore Debt Restructuring
“We’ve consistently seen that there are opportunities for the program to be better, there could be much better uptake and utilization of the program.” Tai is hosting a meeting of trade ministers from Sub-Saharan Africa on Tuesday to discuss AGOA as part of a U.S.-Africa summit in Washington.
When asked about her vision for the program’s evolution, Tai stated that the US would like to explore the “middle ground” between the present AGOA system and traditional complete free trade agreements, as well as build new ties centered on “resilience and inclusiveness.”
Traditional trade policies, such as AGOA, “are reaching some of their limits,” she warned, adding a more inventive strategy was required to enable nations significantly boost their per-capita income.
The Biden administration has not initiated any new classic free trade discussions with any trading partners aimed at cutting tariffs. Instead, it has concentrated on non-tariff negotiations with the European Union, the United Kingdom, Kenya, and other partners on regulatory, technological, environmental, and labor issues.
Tai said she hoped that the work with African countries in the future will help find ways to attract long-term investment for Africa and help the continent move from commodity suppliers to becoming more integrated into global supply chains. #U.S. to Explore Next Phases of Trade Relationship with Africa
