The Africa Growth and Opportunity Act (AGOA) is a historic, bipartite legislation enacted in 2000. AGOA marked a fundamental shift in the US policy towards Africa. For the first time, the US emphasised increased trade as a means of promoting economic development as much as the traditional forms of development assistance. AGOA sought to increase trade by allowing qualifying sub-Saharan African (SSA) countries to export most products to the US duty free.

Indeed, AGOA has delivered results ? since its enactment in 2000, many SSA economies have expanded despite a worldwide economic contraction. In 2001, US imports from SSA increased by 61.5% over the previous two years. The Act?s eligibility requirements have reinforced democratic values and the rule of law, and strengthened adherence to recognised worker rights in SSA countries.

The Act aims at the reduction of tariff and no-tariff barriers as well as other obstacles to trade between SSA countries and the US with particular emphasis on reducing barriers to trade in emerging economic sectors that have the greatest potential for development. It is an undeniable fact that African countries continue to need trade capacity, assistance to establish viable economic capacity, a well-grounded rule of law and efficient government practices.

In its line to preserve this growth tendency, the Act proposes a comprehensive and ambitious trade agreement with the Southern African Customs Union covering all products and sectors to mature the economic relationship between SSA countries and the US because such an agreement would deepen the US economic and political ties with the region, lend momentum to US development efforts, encourage greater US investment and promote regional integration and economic growth.

Together with the major trade principles established, the Act is also concerned with other social issues, which often marginalize societies. Its environment policy aims at making nature wildlife friendly, thus preserving the raw natural beauty of SSA countries. The need for US financial and technical assistance to combat HIV/AIDS is underlined. Moreover, the Act promotes the role of women in social and economic development by reinforcing education and training and ensuring participation in political and economic arenas.

On the other hand, AGOA is also a boon to US exports, as African buying power has increased. In 2001, US exports to AGOA-eligible countries reached record levels, growing by over 17% from 2000. The most recent trade figures for 2003 represent an 8.6% increase in US exports to AGOA countries.

The immediate impetus for AGOA III legislation is the expiry of a provision in existing law that provides the poorest African countries with the ability to use non-African and non-US fabric in their garment exports. With negotiations still going on, our country has reached a difficult crossroads ? Mauritius, not qualifying as one of the ?poorest countries?, is bound by the Act to import its raw material from a limited expensive market, resulting in higher costs of production and finished goods. The competitive market thus makes the survival of our textile sector quite difficult.

For how long can we remain afloat in this demanding and suffocating trade market? It invariably becomes more profitable to invest in the poorer countries? Is our progress, our doom?