WORLD TRADE  
ORGANIZATION  G/C/W/509 
1 March 2005 
 (05-0869) 
Council for Trade in Goods Original:   English 
 
REQUEST FOR A WAIVER 
 
African Growth and Opportunity Act (AGOA)  
   The following communication, dated 24 February 2005, is being circulated at the request of 
the Delegation of the United States.  Legislation and Annexes to this document are available on the 
WTO website and will be circul ated as addenda subsequently. 
 
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 Special United States Trade Arrangement s for Countries of Sub-Saharan Africa
 
  Pursuant to Article IX:3 of the Marrak esh Agreement Establishing the World Trade 
Organization (WTO Agreement), the United States he reby requests Members to waive its obligations 
under paragraph 1 of Article I and paragraphs 1 an d 2 of Article XIII of the General Agreement on 
Tariffs and Trade 1994 (GATT 1994) through September 30, 2015, to the extent necessary to permit it 
to provide duty-free treatment to eligible products  originating in beneficiary sub-Saharan African 
countries (“beneficiary countries”) designated pursuan t to the African Growth and Opportunity Act 
(AGOA).
1  
 1. D
ESCRIPTION OF THE MEASURE  
 
 The AGOA provides for non-reciprocal preferential trade benefits through September 30, 2015, for certain U.S. imports from sub-Saharan A frican countries that meet specific eligibility  
criteria.
2  The text of the AGOA will be circulated as Annex I.   
                                                      
1  For the purposes of this request, “African Grow th and Opportunity Act” and “AGOA” mean Title I 
of the Trade and Development Act of 2000 (Public Law 106-200) as amended by Section 3108 of the Trade Act 
of 2002 (Public Law 107-210), the AGOA Acceleration Act of 2004  (Public Law 108-274), and the 
Miscellaneous Trade and Technical Corrections Act of 2004 (Public Law 108-429).   
2  In accordance with Section 107 of the AGOA (19 U.S.C. § 3706), “sub-Saharan Africa” refers to the 
following countries or any successor political entities of these countries: Angola, Benin, Botswana, Burkina 
Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Republic of the Congo, Cote d’Ivoire, Djibou ti, Equatorial Guinea, Eritrea, Ethiopia, Gabon, The 
Gambia, Ghana, Guinea, Guinea-Bissau,  Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, 
Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda , Sao Tomé and Principe, Senegal, Seychelles, Sierra 
Leone, Somalia, South Africa, Sudan, Swaziland, Tanzania, Togo, Uganda, Zambia, and Zimbabwe. 
As of December 21, 2004, the President has designa ted the following countr ies as beneficiary sub-
Saharan African countries: Angola, Benin, Botswana, Burkina Faso, Cameroon, Cape Verde, Chad, Republic of Congo, Democratic 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 and Principe, Senegal, Seychelles, Sierra Leone, South Africa, Swaziland, 
Tanzania, Uganda, and Zambia.  Sections 104 and 111(a)(1) (19 U.S.C. §§ 3703 and 2466a(a)(1)) of the AGOA 
describe the eligibility criteria countries must meet to be designated as a beneficiary country. 
In general, an article that is otherwise eligible  for preferential treatment  under AGOA will remain 
eligible even if it contains inputs from a country that  ceased to be a beneficiary sub-Saharan African country 
because it entered into a free trade agreement with the United States.  G/C/W/509 
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  Since 1976, the United States has granted tariff preferences to developing countries under the 
Generalized System of Preferences (GSP) program.  Section 111 of the AGOA (19 U.S.C. § 2466a) authorizes the President to provide duty-free treatme nt to certain products excluded by statute from 
the GSP program that originate in a beneficiary c ountry.  On December 18, 2000, the President made 
an additional 1,835 such products  eligible for duty-free treatment.  A list of these items will be 
circulated as Annex II.  Section 114 of the AGOA (19 U.S.C. § 2466b) extends existing U.S. GSP 
preferences to beneficiary countries through September 30, 2015.
3 
  The AGOA also makes beneficiar y countries that adopt certain procedures, listed in section 
113 of the AGOA (19 U.S.C. § 3722), to prevent illega l transshipment eligible to receive duty-free 
treatment for textile and appare l products provided for in section 112 of the AGOA (19 U.S.C. § 
3721).
4  In particular, section 112 of the AGOA pr ovides for duty-free treatment for apparel 
assembled in eligible beneficiary countries from:  1) fabrics formed in the United States from U.S. 
yarns and cut in the United States; 2) components kn it-to-shape in the United States from U.S. yarns; 
3) fabrics formed in the United States from U.S. yarn s, cut in the region, and sewn with U.S. thread; 
4) a combination of U.S. and regional components, whether from components cut in the United States 
and the region from fabrics formed in the United States from U.S. yarns or components knit-to-shape 
in the United States and the region from U.S. yarn, sewn with U.S. thread; and 5) fabrics or yarns 
from third party sources, if those inputs are determined to be in “short supply” in the United States.  The AGOA also provides for duty-free treatment fo r certain sweaters, handloomed, handmade, and 
folklore textiles or apparel, and ethnic printed fabr ics.  Subject to an annual quantitative limit, the 
AGOA provides for duty-free treatment for apparel assembled from fabric formed or components 
knit-to-shape in the region from U.S. or regiona l yarns, or both, or apparel formed on seamless 
knitting machines from U.S. or regional yarns.   Through September 30, 2007, a lower annual 
quantitative limit applies to duty-free treatment of  apparel made in countries designated “lesser 
developed” under the AGOA, regardless of  the source of the fabric or yarn.
5  
 
 Section 111(a)(2) of the AGOA (19 U.S.C. § 246 6a(a)(2)) requires the President to determine 
annually which beneficiary countries are eligible for benefits.  Under sec tion 111(a)(3) of the AGOA 
(19 U.S.C. § 2466a(a)(3)), the President may termin ate the designation of a beneficiary country under 
certain circumstances.  The AGOA does not alter the benefits the United States provides under its 
GSP program to other developing countries. 
 
2. S PECIFIC POLICY OBJECTIVES OF THE MEASURE  
  The AGOA is designed to alleviate poverty an d promote stability and sustainable economic 
development in sub-Saharan Africa by fostering increased trade and investment between the United 
States and beneficiary countries.  The AGOA is also intended to encourage regional economic 
integration and help beneficiary countries partic ipate more fully in the global economy.  It 
complements efforts by other Members to promot e growth and development in the region.   
                                                     
 
3  U.S. GSP preferences for other developing countr ies are currently set to terminate on December 31, 
2006. 
4  The beneficiary countries currently eligible for duty-free treatment of certain textile and apparel 
products are: Benin, Botswana, Cameroon, Cape Verde, Ethiopia, Ghana, Kenya, Lesotho, Madagascar, 
Malawi, Mali, Mauritius, Mozambique, Namibia, Niger, Ni geria, Rwanda, Senegal, Si erra Leone, South Africa, 
Swaziland, Tanzania, Uganda, and Zambia. 
5  The President has designated the following countries as lesser developed sub-Saharan African 
beneficiary countries: Angola, Benin, Burkina Faso, Cameroon, Cape Verde, Central African Republic, Chad, Republic of Congo, Djibouti, Eritrea, Ethiopia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Madagascar, 
Malawi, Mali, Mauritania, Mozambique, Niger, Nigeria, Rwanda, São Tomé and Principe, Senegal, Sierra 
Leone, Swaziland, Tanzania, Uganda, and Zambia.  Congress designated Botswana and Namibia as lesser developed sub-Saharan African bene ficiary countries and de signated Mauritius as a lesser developed sub-
Saharan country through September 2005.   G/C/W/509 
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3. C IRCUMSTANCES JUSTIFYING THE WAIVER  
  Because of the severe and pressing development challenges facing sub-Saharan Africa, these policy objectives cannot be fully achieved through measures consistent with U.S. obligations under 
GATT 1994.  More than 350 million people in sub-Saha ran Africa live on less than a dollar a day, and 
regional GDP per capita was less than $600 in 2003.   Average annual GDP growth in the region was 
just 3.4 percent in 2003; the World Bank estimates that sub-Saharan African economies must grow by 
seven percent per year on average to achieve the UN’s Millennium As sembly goal to cut poverty in 
half by 2015 and to keep the number of poor from increasing.  
 
 Sub-Saharan African countries traditionally ha ve been marginalized in international 
commerce, which has caused a steady decline in the re gion’s role in global trade.  The region’s share 
of world exports was 3.1 percent in 1955, but its trade share dropped to 1.2 percent during the 1990s 
and has remained unchanged.  Moreover, sub-Saharan African countries face the burdens of high debt 
and pandemic disease.  Sub-Saharan Africa is home to 32 of the 38 developing countries that are 
currently classified as Heavily I ndebted Poor Countries by the World Bank.  About 30 million 
Africans are currently living with HIV/AIDS, and most of the countries with the highest HIV infection rates in the world are in sub-Saharan Africa. 
 
4. C
ONCLUSION  
 
 Pursuant to Article IX:3 of the WTO Agreem ent, the United States requests a waiver of its 
obligations under paragraph 1 of Article I and paragraphs 1 and 2 of Article XIII of the GATT 1994 
through September 30, 2015, to the extent necessar y to permit it to provide duty-free treatment under 
the AGOA to eligible products origin ating in beneficiary countries.  
 
 The United States requests the Council for Trade in Goods to give this application for a 
waiver expeditious and favorable consideration.  In the meantime, the United States will promptly 
enter into consultations, on request, with any inte rested Member with respect to any difficulty or 
matter that may arise as a result of the preferential treatment provided under the AGOA. G/C/W/509 
Page 4  
 
 AGOA Draft Decision of [Date]
 
 
Taking note of the request of the United States, pursuant to Article IX:3 of the Marrakesh 
Agreement Establishing the World Trade Organiza tion (WTO Agreement), for a waiver of its 
obligations under paragra ph 1 of Article I and paragraphs 1 a nd 2 of Article XIII of the General 
Agreement on Tariffs and Trade 1994 (GATT 1994) through September 30, 2015, to the extent 
necessary to permit it to provide duty-free treatment to eligible products originating in beneficiary 
sub-Saharan African countries (“beneficiary countri es”) designated pursuant to the African Growth 
and Opportunity Act (AGOA).   
Bearing in mind  the 1994 Decision on Measures in Favour of Least-Developed Countries; 
 
Considering  the exceptional situation of the beneficiary countries of the AGOA, and the 
stated objective of the AGOA to alleviate poverty and promote stability and sustainable economic 
development in sub-Saharan Africa by fostering increased trade and investment between the United 
States and beneficiary countries, and to encourage regional economic integration and help beneficiary 
countries participate more fully in the global economy;  
Considering  further that the preferential treatment provided under the AGOA is designed to 
promote the expansion of trade and economic de velopment of beneficiary countries in a manner 
consistent with the objectives expressed in paragr aphs 1, 2, and 3 of the Preamble to the WTO 
Agreement; 
 
Considering  further that the preferential treatment  provided under the AGOA will not alter 
benefits provided under the U.S. Generalized System  of Preferences to other developing countries; 
 
Noting  the assurances given by the United States that it will promptly enter into consultations, 
on request, with any interested Member with respect  to any difficulty or matter that may arise as a 
result of the preferential treatment provided under the AGOA;  
Having regard for the Guiding Principles to be followed in considering applications for 
waivers adopted on 1 November 1956 (BISD 5S/25), the Understanding in Respect of Waivers of 
Obligations under the General Agreement on Tariffs and Trade 1994, and Decision-Making 
Procedures under Articles IX and XII of the WT O Agreement agreed by the General Council 
(WT/L/93);  
Members, acting pursuant to the provisions of paragraph 3 of Article IX of the WTO 
Agreement, 
 
Decide that: 
 
1. Subject to the terms and conditions set out  hereunder, paragraph 1 of Article I and 
paragraphs 1 and 2 of Article XIII shall be waived through September 30, 2015, to the 
extent necessary to permit the United States to provide duty-free treatment to eligible 
products originating in beneficiary count ries designated pursuant to the AGOA. 
 
2. The United States shall submit to the General Council an annual report on the 
implementation of the preferenti al treatment provided under the AGOA . 
 
3. The United States shall prom ptly notify the General Council of any change in the 
 designation of beneficiary c ountries, as well as any cha nge that would affect the 
 eligibility of products for the prefer ential treatment provided under the AGOA.   G/C/W/509 
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4. The United States shall promptly enter into consultations, on request, with any 
interested Member with respect to any difficu lty or matter that may arise as a result of 
the preferential treatment pr ovided under the AGOA.  If a Member considers that any 
benefit accruing to it under the GATT 1994 ma y be or is being impaired unduly as a 
result of such implementation, such cons ultation shall examine the possibility of 
action for a satisfactory resolution of the matter.  This Decision does not affect 
Members’ rights as set forth in the U nderstanding in Resp ect of Waivers of 
Obligations under the GATT 1994. 
 
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