The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?

23 Pages Posted: 11 Jul 2003

See all articles by Aaditya Mattoo

Aaditya Mattoo

World Bank - Development Research Group (DECRG)

Devesh Roy

University of Maryland - Department of Economics

Arvind Subramanian

International Monetary Fund (IMF); Center for Global Development

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Abstract

This paper describes the United States recently enacted Africa Growth and Opportunity Act (AGOA) and assesses its quantitative impact on African exports. The AGOA expands the scope of preferential access of Africa's exports to the United States in key areas such as clothing. However, its medium-term benefits - estimated at about US$100-$140 million, an 8-11 per cent addition to current non-oil exports - would have been nearly five times greater (US$540 million) if no restrictive conditions had been imposed on the terms of market access. The most important of these conditions are the rules of origin with which African exporters of clothing must comply to benefit from duty-free access.

Suggested Citation

Mattoo, Aaditya and Roy, Devesh and Subramanian, Arvind, The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?. World Economy, Vol. 26, pp. 829-851, June 2003. Available at SSRN: https://ssrn.com/abstract=423344

Aaditya Mattoo (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H Street, N.W.
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HOME PAGE: http://econ.worldbank.org/staff/amattoo

Devesh Roy

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

Arvind Subramanian

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Center for Global Development

2055 L St. NW
5th floor
Washington, DC 20036
United States

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