The Government of the USA has reviewed Madagascar’s eligibility for African Growth and Opportunity Act (AGOA) tariff benefits, effective immediately, but has withdrawn Swaziland’s eligibility, with effect from January 1, 2015. President Obama has recently initiated a review of how AGOA could be improved to boost trade with and within Africa. AGOA is a substantial trade preference under the US Generalized System of Preferences tariff treatment and its third country-fabric provision, allow duty-free treatment for almost all goods produced in sub-Saharan AGOA-eligible countries – approximately 6,800 products – to enter the US market duty free.
Swaziland was getting benefit from 2001 when its Government accepted the AGOA eligibility criteria. As part of review of Swaziland, the US Government took special note of continuing concerns regarding workers’ rights issues in Swaziland. The decision to withdraw Swaziland’s AGOA eligibility, which will particularly affect its textile industry, has come after years of engaging with its Government on those concerns.
