An interesting article published on Semafor expresses skepticism regarding the future of the African Growth Opportunity Act (AGOA), a trade deal that offers eligible sub-Saharan African countries duty-free access to the United States (US) market. AGOA operates in an asymmetric way: the US open its market to a certain number of products originating from selected African States, without a similar obligation for beneficiary countries to open their markets to US-originating products. However, access to the AGOA does not come without a price. Beneficiary countries are required to meet a set of strict conditions to qualify to trade under the programme. Among them, there is the requirement to put in place a market-based economy that protects private property rights, to develop an open rules-based trading system, and to minimize government interference in the economy through measures such as price controls, subsidies, and government ownership of economic assets. In addition, beneficiary countries are required to remove any barrier to US trade and investment, to protect internationally recognised human rights, and to adopt mechanisms aimed at combatting corruption and bribery.

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The World Trade Organization (WTO) Secretariat has completed the review of the trade policies and practices of Madagascar. This is the fourth review since the country accessed to the WTO, on 17 November 1995. All members of the Organization have their trade policy periodically reviewed, the frequency of which varies depending on a country’s share of world trade. The trade policies review of Madagascar depicts a situation of a country whose potential is high, particularly in the agriculture, mining and tourism sectors, as well as in the textile industry. However, the challenges are equally important: high exposure to climate shocks (mainly droughts and cyclones) and an infrastructure which is in a very poor state -particularly roads and electrical grid - represent significant barriers to the economic growth and trade of the island.

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