The African Growth and Opportunity Act (AGOA) was signed into law on the 18th of May 2000 as Title 1 of The Trade and Development Act of 2000. The Act offers tangible incentives for African countries to continue their efforts to open their economies and build free markets. The recent renewal will extend the program for 10 years and continue to provide duty free access for footwear made in Africa bound for the United States. 

According to the Footwear Distributors and Retailers of America (FDRA) this trade program is increasingly important to US footwear companies sourcing in Africa: “We applaud the House of Representatives for passing legislation to extend the African Growth & Opportunity Act (AGOA) for an unprecedented 10 years,” said FDRA’s President Matt Priest. “This bipartisan legislation is critical to US footwear companies currently sourcing from Africa and those who are looking to source there in the years to come. We expect the Senate to move quickly to pass AGOA and the President to sign it in the coming days. As countries like Ethiopia are becoming increasingly important as a supplier of footwear to the US, the value of this vital trade program will only increase”, Mr. Priest added.

According to the American Association 99% of all shoes sold in the US are made overseas, despite high tariffs applied. The same source indicates that footwear tariffs average 10%, but can reach much higher rates.

The FDRA estimates that leather footwear production in African countries like Ethiopia has increased over the past few years, as companies seek to lower their duty bills through AGOA.