Proclamation Restores AGOA Benefits for Cote d'Ivoire, Guinea, and Niger

Benefits Regained due to Fair Elections, Market Economy Actions

According to U.S. Trade Representative Kirk, all three countries lost their AGOA benefits due to undemocratic changes in government and are now regaining them due to recent Presidential elections that were considered free and fair and for taking other actions to promote democratic government and market-based economies.

(Cote d’Ivoire lost AGOA eligibility on January 1, 2005 following years of political unrest and armed conflict. Guinea lost its AGOA eligibility on January 1, 2010 as a result of a coup and other abuses. Niger lost AGOA eligibility on January 1, 2010 after its President attempted to retain power by dissolving the national government, etc.)

Proclamation Re-designates Them as Beneficiary AGOA Countries, Etc.

The President has determined that these countries once again meet AGOA beneficiary requirements and has therefore issued a proclamation that:

• Designates as beneficiary AGOA countries - re-designates Côte d'Ivoire, Guinea, and Niger as beneficiary AGOA countries.¹

• Modifies HTS to add countries -- modifies general note 16(a) to the Harmonized Tariff Schedule by inserting in alphabetical sequence in the list of beneficiary AGOA countries "Republic of Côte d'Ivoire", "Republic of Guinea", and "Republic of Niger."

• Designates as lesser developed AGOA beneficiaries for “third country” TPL sublimit - designates Côte d'Ivoire, Guinea, and Niger as lesser developed AGOA beneficiary countries¹ for purposes of section 112(c) of the AGOA which provides an additional duty-free “third country” tariff preference level (TPL) sublimit for certain apparel articles wholly assembled, or knit-to-shape and wholly assembled, or both, in one or more lesser developed AGOA beneficiary countries, regardless of the country of origin of the fabric or the yarn used to make such articles. (See ITT’s Online Archives 11092717 for summary of the FY 2012 AGOA TPL and the “third country” TPL sublimit that is available through Sept. 30, 2012.)

Most Goods Produced in AGOA-Eligible Countries Can Enter U.S. Duty-Free

AGOA was signed into law by President Clinton in May 2000, with the objectives of expanding U.S. trade and investment with sub-Saharan Africa, stimulating economic growth in Africa, promoting a high-level dialogue on trade and investment-related issues, encouraging economic integration, and facilitating sub-Saharan Africa's integration into the global economy.

According to USTR, at the center of AGOA are substantial trade preferences that, along with those under the Generalized System of Preferences (GSP) and Most-Favored-Nation tariff treatment, allow most goods produced in AGOA-eligible countries to enter the U.S. market duty-free.

¹Note that the proclamation uses the terms “beneficiary sub Saharan African countries” and “lesser developed beneficiary sub Saharan African countries” while this notice uses the terms “AGOA beneficiary countries” and “lesser developed AGOA beneficiary countries.”

(See ITT’s Online Archives 11081209 for USTR reviewing possible AGOA redesignation for Côte d'Ivoire, Guinea, and Niger.

See ITT’s Online Archives 09122805 for summary of Proclamation removing Guinea and Niger as AGOA beneficiaries.

See ITT’s Online Archives 04122715 for summary of Proclamation removing Cote d’Ivoire as an AGOA beneficiary.)

USTR statement and blog (dated 10/25/11) available here and here.

USTR information on AGOA available here.

Federal Register version of Proclamation 8741 subsequently issued (FR Pub 10/28/11) available here.