Although AGOA has been extended twice, the last time until 2025, it has been threatened over the past four years due to tariffs on major steel and aluminum products and the suspension of duty-free access to clothing imports from Rwanda. Any further disruption to AGOA could devastate the region, particularly in the medium and long term, as economies seek to recover from the effects of COVID-19. Related Content Focus on Africa The United States and Kenya are entering into a free trade agreement. Will they succeed? Witney Schneidman and Brionne Dawson Wednesday, July 29, 2020 Future development ASEAN lessons for regional integration in Africa Souleymane Coulibaly Wednesday, July 29, 2020 Focus on Africa Trade in uncertain times: Regional priorities ahead of global value chains to accelerate economic development in East Africa Andrew Mold and Anthony Mangevey Wednesday, April 15, 2020 Impact Africa, a wholly owned subsidiary of the African exploration company Impact Oil and Gas, has signed an agreement with BG International to create a 50% stake in Transkei and Algoa Explorations Blocs, off the coast of South Africa. It is important to stress that AGOA is a preferential agreement and not a free trade agreement. A free trade agreement is an agreement between two or more countries establishing a free trade area in which trade in goods and services can be done beyond their common borders, without tariffs or barriers. A preferential trade agreement is a trade pact between countries that lowers tariffs on certain products on the countries that sign the agreement. Although tariffs are not necessarily eliminated, they are lower than those that are not parties to the agreement. It is a form of economic integration. The U.S. Department of Commerce describes AGOA as ”the most liberal access to the U.S.
market, available to any country or region with which the United States does not have a free trade agreement.” AGOA should in part create a way for the United States to develop free trade agreements with certain African markets; But it still needs to be done. As part of the farm-out agreement, Shell acquires a 50% interest in the Transkei-Algoa blocks and the operator. Shell also had the opportunity to acquire an additional 5% interest in the third extension period, which is expected to be approximately 2024. Impact Africa Ltd, has also entered into an agreement with Silver Wave Energy Pte Ltd (”Silver Wave”) for the 90% farm-in work and operating interest of Area 2, Offshore South Africa (Exploration Right Reference 12/3/276). In recent months, the United States has begun negotiations for a bilateral free trade agreement with Kenya. These negotiations are in line with the current government`s vision for trade reciprocity, not unilateral trade preference programs. While these negotiations could result in the first bilateral trade agreement between the United States and a sub-Saharan African country, the transfer of preferential regional agreements to bilateral free trade agreements could jeopardize the growth of small countries that may not have sufficient economic interest for the United States. Bilateral agreements could also undermine efforts to create a regional economic bloc through the Continental Free Trade Area (AfCFTA). VANCOUVER, BC, November 4, 2020 /CNW/ – (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil Corp. (”AOI,” ”Africa Oil” or ”The Company”) is pleased to announce that the Impact Oil and Gas Limited (”Impact”) has entered into two agreements for exploration areas off the coast of South Africa. The company owns 31.10% of Impact, a private exploration company that focuses strategically on large-scale, medium- and deep-sized games with sufficient materiality to interest large companies.