Allow AGOA to Expire to allow Diaspora Involvement

The African Growth and Opportunity Act (AGOA), enacted in 2000, was designed to enhance trade and economic relations between the United States and sub-Saharan African countries by providing eligible African nations with duty-free access to the U.S. market for certain products. While AGOA has facilitated increased exports from Africa to the U.S., it has been criticized for not adequately involving the African diaspora and dual citizen entrepreneurs in its framework. This paper argues that due to AGOA's failure to incorporate these key stakeholders, allowing the act to expire could pave the way for more inclusive and effective trade policies.​

Lack of Provisions for Diaspora Involvement

The African diaspora, particularly those holding dual citizenship, possess unique insights, networks, and capital that could significantly contribute to the success of trade initiatives like AGOA. However, AGOA's structure does not include specific mechanisms to engage this demographic. Diaspora entrepreneurs often face challenges such as limited access to information about AGOA's benefits, bureaucratic hurdles, and a lack of support in navigating the U.S. market. This oversight has resulted in missed opportunities for fostering entrepreneurship and investment that could have been facilitated by more inclusive policies.​

Missed Opportunities for Dual Citizen Entrepreneurs

Dual citizens often serve as important bridges between their countries of origin and the United States, possessing the unique cultural understanding and diverse business acumen necessary to effectively navigate both markets with ease. Despite this considerable potential, the African Growth and Opportunity Act (AGOA) does not provide tailored support or specific incentives for dual citizen entrepreneurs. The absence of such crucial provisions means that these individuals are not leveraged effectively to promote trade and investment under AGOA, which ultimately leads to the underutilization of a valuable resource in enhancing the economic relations between the United States and Africa.

Evidence from Research

Studies have shown that diaspora entrepreneurship and investments are significant and meaningful drivers of economic development in various regions. For instance, extensive research indicates that approximately 80% of foreign direct investment in China is attributed to the Chinese diaspora. This statistic powerfully demonstrates the substantial and far-reaching impact that engaged diaspora communities can have on overall economic growth in their home countries. The noticeable lack of similar engagement within the African Growth and Opportunity Act (AGOA) suggests a critical gap in the act's design and implementation, indicating an area that could benefit from further attention and development.

Conclusion

While AGOA has achieved certain objectives in promoting trade between the United States and sub-Saharan Africa, its failure to incorporate provisions for diaspora involvement and support for dual citizen entrepreneurs represents a significant shortcoming. Allowing AGOA to expire could provide an opportunity to develop new trade policies that are more inclusive and better designed to leverage the full spectrum of resources available, including the talents and capital of the African diaspora. Such policies could lead to more sustainable and mutually beneficial economic relationships between the U.S. and African nations.