Somalia’s Application to the African Growth and Opportunity Act

The African Growth and Opportunity Act is a United States trade act that was passed in 2000. The act provides eligible sub-Saharan African countries with duty-free access to the US market for over 1,800 products, in addition to the more than 5,000 products that are eligible for duty-free access under the Generalized System of Preferences program.

AGOA was designed to promote economic growth and development in sub-Saharan Africa by increasing trade between the United States and the region. In 2019, the United States exported over $29 billion worth of goods to sub-Saharan Africa under AGOA, and the region exported over $32 billion worth of goods to the United States. A World Bank study found that the AGOA has helped to create over 2 million jobs in the region.

Somalia's Minister of Commerce, Jibril Abdirashid Haji, has submitted an application on behalf of the Federal Government of Somalia for designation as an AGOA beneficiary country. During the application ceremony, the US ambassador to Somalia, Larry André, said the Act would provide Somalia with an opportunity to export its products to the United States with greatly reduced trade barriers.

The African Growth & Opportunity Act will provide Somalia with an opportunity to export its products to the United States with greatly reduced trade barriers.

Ambassador Larry André, U.S. Embassy Mogadishu, 29 March 2023

According to the program, AGOA has also been successful in promoting economic growth and development in sub-Saharan Africa. The program has helped to create jobs, increase investment, and improve access to markets for African businesses. AGOA has also been framed as a lever for democracy and good governance — encouraging countries to adopt market-based economic policies and to respect human rights. For Somalia, the application is less a trophy than a to-do list: ports, standards, and something to put in the container.