RS21772 -- AGOA III: Amendment to the African Growth and Opportunity Act
Updated January 19, 2005

	Background: The African Growth and Opportunity Act

After two decades of economic stagnation and decline, some African countries began to show signs of renewed economic growth in the early 1990s. The African Growth and Opportunity Act (AGOA) ( P.L.106-200 - Title I) was enacted to encouragetrade as a way to further economic growth in Sub-Saharan Africa and to help integrate the region into the worldeconomy. AGOA provided trade preferencesand other benefits to countries that were making progress in economic, legal, and human rights reforms. Various U.S.government agencies carry out trade-related technical assistance in Sub-Saharan Africa. phytosanitary regulations; and strategies for further benefiting from AGOA. This provision was dueto expire on September 30, 2004. 108-429 ). AGOA was first amended in the Trade Act of 2002 ( P.L. 107-210 ), which doubled a pre-existing cap set on allowable duty-free apparel imports. regulatory and market standards. Provisions from the AGOA Acceleration Act of 2004
On July 13, 2004, the "AGOA Acceleration Act of 2004" was signed by the Presidentand became P.L.108-274. This legislation amends the African Growth and Opportunity Act (AGOA; P.L. 106-200, Title I), extending it to2015. AGOA seeks to spur economicdevelopment and help integrate Africa into the world trading system by granting trade preferences and other benefitsto Sub-Saharan African countries that meetcertain criteria relating to market reform and human rights. Congress first amended AGOA in 2002 (P.L. 107-210)by increasing a cap on duty-free apparelimports and clarifying other provisions. The new AGOA amendment, commonly referred to as "AGOA III," extendsthe legislation beyond its currentexpiration date of 2008 and otherwise amends existing AGOA provisions. For further information on AGOA, seeCRS Report RL31772, U.S. Trade andInvestment Relationship with Sub- Saharan Africa: The African Growth and Opportunity Act and Beyond. This report will be updated as needed.