Malawi has failed to utilize the AGOA initiative

Malawi has under-utilized the African Growth and opportunity Act (AGOA) because of lack of a National Response Strategy to coordinate activities and ensure full realization of the initiative. AGOA, a trade preference program that provides duty-free access into the United States has been in existence from the year 2000 and is expected to expire in 2025. To enhance Malawi’s competitiveness, the Ministry of Industry, Trade and Tourism with support from USAID developed an AGOA utilization strategy, the National Response Strategy for Malawi which seeks to address the constraints and enhances competitiveness of exports to the US. The strategy has identified Macadamia nuts, Tea, Honey, Mangoes and Handicrafts (arts and crafts) as some of the products with greatest export potential to the US. At a dissemination workshop in Blantyre for the strategy, Ministry of Industry, Trade and Tourism Director, Christina Chatima said the priority products for export were selected based on existing U.S market demand, tariff rate for AGOA and potential for increased production including value added products.