AGOA should support AfCFTA –Africa trade ministers

The Africa Growth and Opportunity Act (AGOA) should support the African Continental Free Trade Agreement (AfCFTA).

This was the submission of Africa trade ministers who participated in the 17th Africa Growth and Opportunity Act Forum in Washington DC from 11-12 July 2018 under the theme: Forging New Strategies for US-African Trade.

The Forum was preceded by the Africa Trade Ministers Consultative Meeting on 10 July.

In their remarks to the Forum, the ministers emphasised the strategic importance of the African Continental Free Trade Agreement (AfCFTA) to African countries and the need for AGOA to support this objective. In addition, they emphasised the development integration agenda that combines market integration, industrialisation and infrastructure development in boosting intra-Africa trade.  Therefore, AGOA remains critical in developing regional value chains that are beginning to develop in the Continent.

They underscored the need for the AU Member States to develop a common position on the trade and investment relations with the US and engage the US as a block with a view to ensure alignment to the integration efforts of the African Continent.

Civil society and the private sector also submitted recommendations to the Forum. Civil society recommended, among others that the US Government must ensure that regional economic integration projects advance industrialisation and encourage backward and forward linkages, technology and skills transfer to help develop local value chains in line with international standards on human rights, labour laws and gender equality.

The ministers also raised a concern with the erosion of AGOA preferences resulting from the recent Section 232 measures on steel and aluminium, and possibly on automotive and auto components. In this regard, they called on the US to exempt Sub-Sahara Africa exports from Section 232 measures.

Furthermore, they noted with concern the emergence of trade wars which will have negative implications for global trade, especially African countries.