The Trump administration has signalled support for a one-year extension of the African Growth and Opportunity Act (AGOA), offering a reprieve for the decades-old trade pact set to expire at the end of the month, a White House official said.
Since taking office in January, Trump’s administration has not publicly stated its position on AGOA, the 2000 law granting duty-free access to the U.S. market for more than 1,800 products.
In 2024, 32 nations remain eligible for its benefits. Originally extended through 2025 under legislation passed in 2015, the 25-year-old pact is now due to expire at the end of this month.
Its impact has already been weakened by President Donald Trump’s unilateral tariffs of 10% to 30% on African nations.
Kenyan President William Ruto, South Africa’s President Cyril Ramaphosa and Lesotho’s trade minister have all publicly urged Washington to extend the program. The International Trade Centre in Geneva warns that the program’s lapse could trigger a “major drop” in apparel and tuna exports from Kenya, Tanzania, Cape Verde, Lesotho and Eswatini.
South Africa, the continent’s biggest economy, faces a 17% decline in shipments, with losses concentrated in metals, vehicles and chemicals.
The benefits of AGOA have eroded in recent years as China has increased its competing exports and the Trump administration has imposed country-specific tariffs.
Some nations stand to gain from the shift. Angola, one of Africa’s top oil producers, has been exempted from new U.S. tariff measures, while Senegal’s position has strengthened thanks to its exports of titanium and zirconium.
Source: Africabusinessinsider