ABSTRACT
This chapter examines the effectiveness of the African Growth and Opportunity Act's (AGOA) trade agreement with the USA and its impact on economic activities, trade barriers, international relations and politics. Specifically, it highlights and proposes strategies in the five areas-financial liberalization, export diversification, rules of origin, trading bloc, international relations (USA vs. China)-where the AGOA appears to be ineffective and thus has failed to contribute significantly to quality of life in SSA. The AGOA has the goal to promote trade, investment and economic cooperation between the USA and AGOA member countries, but it needs to address the factors restricting foreign direct investment (FDI). Therefore, it is necessary to determine what level of financial liberalization is most beneficial to African nations. It is certain that Africa's poverty is due to a lack of economic growth and declining economic development leading to their inability to remain competitive in international markets.
