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The African Growth and Opportunity Act 2020 BIENNIAL REPORT ON THE IMPLEMENTATION OF THE AFRICAN GROWTH AND OPPORTUNITY ACT UNITED STATES TRADE REPRESENTATIVE June 2020 2020 BIENNIAL REPORT ON THE IMPLEMENTATION OF THE AFRICAN GROWTH AND OPPORTUNITY ACT Ambassador Robert E. Lighthizer Office of the United States Trade Representative June 2020 Foreword Section 110 of the Trade Preferences Extension Act of 2015 (“the Act”), 19 U.S.C. § 3705 note, states that the President shall submit a report to Congress on the trade and investment relationship between the United States and sub-Saharan African countries no later than one year after the enactment of the Act, and biennially thereafter. This reporting function was delegated to the United States Trade Representative (USTR) in Executive Order 13720 of February 26, 2016. The USTR, on behalf of the President, last submitted this report under this provision in June 2018. The current report covers the period since then. It provides a description of the status of trade and investment between the United States and sub-Saharan Africa, changes in country eligibility for AGOA benefits, an analysis of country compliance with the AGOA eligibility criteria, an overview of regional integration efforts in sub-Saharan Africa, and a summary of U.S. trade capacity building efforts. Table of Contents Foreword ...................................................................................................................................................................... 5 Chapter 1: The Trade and Investment Relationship between the United States and sub-Saharan Africa ....... 8 Overview .................................................................................................................................................................... 8 Trade in Goods ............................................................................................................................................................ 8 Services Trade ............................................................................................................................................................. 9 Investment ................................................................................................................................................................... 9 Chapter 2: AGOA Implementation ........................................................................................................................ 10 Overview .................................................................................................................................................................. 10 AGOA Import Data ................................................................................................................................................... 10 The AGOA Forum ..................................................................................................................................................... 11 Developing Strategies to Support AGOA Implementation ....................................................................................... 11 Chapter 3: Key Initiatives and Engagements ........................................................................................................ 13 Announcement of Intent to Initiate Trade Negotiations with Kenya ......................................................................... 13 U.S. Government Support of African Continental Free Trade Area ......................................................................... 13 The Better Utilization of Investments Leading to Development (BUILD) Act and Launch of U.S. International Development Finance Corporation ............................................................................................................................ 13 Prosper Africa ............................................................................................................................................................ 14 President’s Advisory Council on Doing Business in Africa ...................................................................................... 14 Secretary Pompeo’s February 2020 Visit to sub-Saharan Africa .............................................................................. 15 Advisor to the President Ivanka Trump and USAID Administrator Green’s 2019 Visit to sub-Saharan Africa ...... 15 U.S.-Nigeria Commercial and Investment Dialogue ................................................................................................. 15 U.S.-Rwanda Trade and Investment Framework Council Meeting ........................................................................... 15 Chapter 4: AGOA Eligibility and Country Reports ............................................................................................. 16 AGOA Eligibility Criteria ......................................................................................................................................... 16 The Annual AGOA Eligibility Review ..................................................................................................................... 17 Recent Changes in AGOA Eligibility ........................................................................................................................ 17 Country Eligibility Reports ........................................................................................................................................ 17 Chapter 5: Trade Capacity Building ..................................................................................................................... 63 Interagency Support for Implementation of the African Continental Free Trade Area (AfCFTA) ........................... 63 The U.S. Agency for International Development (USAID) ...................................................................................... 63 The U.S. Department of Agriculture ......................................................................................................................... 66 U.S. Department of Commerce .................................................................................................................................. 69 U.S. Department of Energy ....................................................................................................................................... 70 The Export-Import Bank of the United States ........................................................................................................... 71 U.S. Department of Homeland Security .................................................................................................................... 72 U.S. Department of Justice ........................................................................................................................................ 72 U.S. Department of Labor ......................................................................................................................................... 72 Millennium Challenge Corporation ........................................................................................................................... 73 The U.S. Development Finance Corporation ............................................................................................................. 74 The U.S. Trade and Development Agency ................................................................................................................ 74 The U.S. Department of Transportation .................................................................................................................... 76 6 Chapter 6: The Status of Regional Integration Efforts ........................................................................................ 77 Appendix 1: AGOA Eligible and Ineligble Countries ............................................................................................... 79 Appendix 2: AGOA Eligibility Criteria Legislation .................................................................................................. 80 Appendix 3: GSP Eligibility Criteria ......................................................................................................................... 83 Appendix 4: Countries with AGOA Utilization Strategies ........................................................................................ 79 Appendix 5: Country Membership in Regional Economic Communities ................................................................. 80 Appendix 6: Goods Trade between the United States and sub-Saharan Africa ......................................................... 87 Appendix 7: Cross-Border Services Trade between the United States and Africa .................................................... 88 Appendix 8: Inward and Outward Investment ........................................................................................................... 89 7 Chapter 1: The Trade and Investment Relationship between the United States and sub-Saharan Africa Overview The United States maintains a strong trade and investment relationship with sub-Saharan Africa. In recent years, many African nations have enjoyed high rates of economic growth, rising living standards and a reduction in poverty. As a result, U.S. trade ties with sub-Saharan Africa have evolved and expanded. Major American companies have entered the market making first-time large-scale investments. Numerous existing investors have increased their operations. More and more U.S. small and medium-sized businesses are viewing sub-Saharan
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