The African Growth and Opportunity Act (AGOA), the free trade pact with the US provides preferential access to Sub-Saharan countries in to US markets till 2015 and also has special provisions for exports of textiles and apparels. This act was enacted to help these African countries open their economies and build free markets in the region.

The main idea behind the act was to help these countries grow their economies, by opening up the biggest market in the world, said  Mr Endalkachew Sime, Secretary General of the Ethiopian Textile and Garment Manufacturers' Association (ETGAMA).

Exports eligible under the newly-added AGOA product categories amounted to only US $0.2 million in 2001, the first full year of operation of AGOA.

This increased to $1.3 million in 2002, which exclusively consisted of textiles, apparel and agricultural products. AGOA/GSP exports have gone up steadily, but slowly, year after year since 2005, representing an increase by $4.8 million through 2007.

Total AGOA/GSP exports were $5.1 million in 2005 and reached $7.2 million by the end of 2006. AGOA/GSP exports for 2007 reached $8.9 million, the highest ever since Ethiopia started exporting under AGOA.

The growth in export value has continued showing remarkable increase in the year 2008. The year-to-date total AGOA/GSP exports from Ethiopia to the U.S grew from $5.423 million in 2007 to $18.087 million in 2008, indicating more than a two fold increase.

Ethiopia has continued to increase exports and from January-June 2008, Ethiopia’s AGOA exports reached $9.7 million, surpassing $8.9 million achieved during the entire 2007 calendar year.

The latest data available for almost every product exported under AGOA/GSP show large increases, including textiles and apparel (up 162%), foliage/bouquet filler (up 115%), live plants (up 122%), fruits and nuts (up 1,495%) and also this achievement has come on back of a reputation carried by the Sub-Saharan countries of exporting commodities, which used to account for a majority of exports to the markets of the US in the last few years.