Agoa trade window uptake high—study
Malawi is among 18 countries in Africa that have adequately utilised the Africa Growth and Opportunity Act (Agoa) trade window over the past 23 years, a latest update shows.
The update prepared by the United States International Trade Commission to assess the impact of the Agoa on African countries over the past decade ranks Malawi among 19 countries in Africa whose utilisation is above average.
Titled Agoa: Programme usage, trends, and sectoral highlights’, the update shows that Malawi’s utilisation rate averaged 96.2 percent over the years though revenues generated under the window have been fluctuating.
Reads the report: “Agoa has had a positive, but limited impact on exports to the US from Agoa beneficiaries as a whole where countries such as Malawi, for instance, had higher Agoa utilisation rates, having exported items that aligned with the list of products covered under Agoa.”
The Agoa trade window covers textile as well as non-textile products such as leather, chemicals and other agricultural products from the beneficiary countries. It was designed to contribute to economic growth through good governance and free markets.
Under Agoa, whose lifespan was recently extended to September 30 2025, there are some 5 240 tariff items eligible as long as they were wholly ogrown, fished or mined in an Agoa country such as Malawi.
Ministry of Trade and Industry spokesperson Mayeso Msokera in an interview said the Agoa market access window has offered a lot of products originating from Malawi duty-free and quota-free access to the US market, thereby increasing revenue for the country.
“Our producers and exporters stand a chance to gain a competitive advantage over exporters in other countries,” he said.
National Working Group on Trade and Policy chairperson Fredrick Changaya said there is need for awareness on the existence of the window and incentives for exports to ensure more Malawians take advantage of the pact to grow exports.
The data shows that Malawi has maintained a trade surplus, with the exports fluctuating.
According to the data, oil and gas, apparel and accessories remain top exports to the Agoa trade window.
