Fact Sheet

Differences Between AGOA and Ex-Im Bank

AGOA

The African Growth and Opportunity Act (AGOA) or Africa Trade Bill provides beneficiary countries in sub-Saharan Africa with the most liberal access to the U.S. market without a Free Trade Agreement. In particular, AGOA gives beneficiary sub-Saharan African countries:

• Duty-free treatment under Generalized System of Preferences (GSP) for any article which the U..S Trade Representative (USTR) and the U.S. International Trade Commission (USITC) determine is not import sensitive when imported from African countries
• Duty-free treatment for more than 1,800 products in addition to the standard GSP 4,600 products available to other non-AGOA GSP beneficiary countries (some examples include agricultural products, building materials, chemicals, machine parts, yarns and fabrics)
• AGOA extends GSP for eligible sub-Saharan African beneficiaries until September 2008, seven years longer than in the rest of the world

Apparel Provisions

• Unlimited duty-free and quota-free U.S. market access for apparel made from U.S. fabric, yarn, and thread;
• Duty-free and quota-free U.S. market access for apparel made from yarns and fabrics not available in the United States and capped market access for apparel made from yarns and fabrics produced in beneficiary countries in sub-Saharan Africa

How Ex-Im Bank Supports AGOA Beneficiaries

Although Ex-Im Bank does not support imports into the U.S., the Bank helps facilitate trade between Africa and the U.S. Ex-Im Bank financing can support the sale of U.S. exports needed to take advantage of the Africa Trade Bill:

• U.S. manufacturing equipment can be exported to Africa producers who need to upgrade their facilities
• U.S. fabric, yarn and thread needed for production of apparel, qualifying such apparel for unlimited duty-free and quota-free U.S. market access
• U.S. raw materials for the production of qualified non-apparel goods

AGOA gives new sales opportunities in the U.S. for sub-Saharan Africa apparel manufacturers. More apparel sales will require additional manufacturing equipment. To take advantage of this new opportunity from AGOA, Ex-Im Bank is ready to help Sub-Saharan African apparel manufacturers, and all eligible manufacturers, grow by financing U.S. exports of manufacturing equipment, products and services.

Ex-Im Bank

Ex-Im Bank requires that all of its supported transactions have a reasonable assurance of repayment. The eligibility of Ex-Im Bank support in a particular country reflects that country's economic and political risks. The criteria for inclusion in AGOA differ from the economic and political risks associated with financing exports-therefore the list of countries eligible for AGOA benefits are different. However, the main difference between AGOA and Ex-Im Bank is that AGOA promotes U.S. imports from sub-Saharan Africa, while Ex-Im Bank only supports U.S. exports.

Of the 48 sub-Saharan Africa countries, 37 are designated as AGOA beneficiaries. They are: Angola, Benin, Botswana, Burkina Faso, Cameroon, Cape Verde, Chad, Congo (DR), Republic of Congo, Djibouti, Ethiopia, Gabon, The Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, São Tomé & Principe, Senegal, Seychelles, Sierra Leone, South Africa, Swaziland, Tanzania, Uganda, and Zambia.

(Bold typeface indicates Ex-Im Bank programs are available as well)