African Growth & Opportunity Act (AGOA)

The African Growth and Opportunity Act (AGOA) confers very significant benefits on Ethiopia, affording it the most liberal access to the US market available to any country or region with which the US does not have a Free Trade Agreement. Ethiopia will be able to benefit from duty-free access for thousands of products under the Generalized System of Preferences (GSP) for a guaranteed period of eight years, seven years longer than the rest of the world and for many more tariff line items. In addition, Ethiopia is exempted is from competitive need limitations which cap the GSP benefits available to beneficiaries in other countries.

AGOA also provides enhanced US market access for apparel and Ethiopia, as a specially designated beneficiary nation, enjoys even greater access than do many other African nations. Until the end of September, 2004, apparel made from textiles originating anywhere in the world may enter the US duty-free and effectively quota-free. (Non-specially designated African nations must use US origin fabric, yarn and thread to qualify). This apparel benefit will begin once Ethiopia's Textile export control system is certified by the US government, a process now underway.

These specially enhanced AGOA benefits, coupled with Ethiopia's pro-business policies and environment, make the country a strong investment prospect for a wide range of American firms.

In addition to these advantages, Ethiopia's newly liberalized investment code provides foreign investors with excellent investment opportunities in a variety of areas.