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

  • Arvind Subramanian
  • Aaditya Mattoo
  • Devesh Roy

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 percent 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.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 02/158.

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Length: 36
Date of creation: 01 Sep 2002
Date of revision:
Handle: RePEc:imf:imfwpa:02/158
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  1. Ianchovichina, Elena & Mattoo, Aaditya & Olarreaga, Marcelo, 2001. "Unrestricted Market Access for Sub-Saharan Africa: How Much is it Worth and Who Pays?," CEPR Discussion Papers 2820, C.E.P.R. Discussion Papers.
  2. Natalia T. Tamirisa & Arvind Subramanian, 2001. "Africa's Trade Revisted," IMF Working Papers 01/33, International Monetary Fund.
  3. Kala Krishna & Anne Krueger, 1995. "Implementing Free Trade Areas: Rules of Origin and Hidden Protection," NBER Working Papers 4983, National Bureau of Economic Research, Inc.
  4. Rod Falvey & Geoff Reed,, . "Economic Effects of Rules of Origin," Discussion Papers 97/21, University of Nottingham, CREDIT.
  5. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2001. "Eliminating excessive tariffs on exports of least developed countries," Policy Research Working Paper Series 2604, The World Bank.
  6. Anne O. Krueger, 1993. "Free Trade Agreements as Protectionist Devices: Rules of Origin," NBER Working Papers 4352, National Bureau of Economic Research, Inc.
  7. Arvind Subramanian & Devesh Roy, 2001. "Who Can Explain the Mauritian Miracle; Meade, Romer, Sachs, or Rodrik?," IMF Working Papers 01/116, International Monetary Fund.
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