The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?
Article first published online: 10 JUL 2003
The World Economy
Volume 26, Issue 6, pages 829–851, June 2003
How to Cite
Mattoo, A., Roy, D. and Subramanian, A. (2003), The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?. World Economy, 26: 829–851. doi: 10.1111/1467-9701.00550
- Issue published online: 10 JUL 2003
- Article first published online: 10 JUL 2003
This paper describes the United States recently enacted Africa Growth and Opportunity Act (AGOA) and assesses its quantitative impact on African exports. The AGOA expands the scope of preferential access of Africa's exports to the United States in key areas such as clothing. However, its medium-term benefits – estimated at about US$100-$140 million, an 8−11 per cent addition to current non-oil exports – would have been nearly five times greater (US$540 million) if no restrictive conditions had been imposed on the terms of market access. The most important of these conditions are the rules of origin with which African exporters of clothing must comply to benefit from duty-free access.