The Trump administration has indicated support for a one-year extension of the African Growth and Opportunity Act (AGOA), offering a temporary reprieve for the decades-old trade pact set to expire at the end of the month, a White House official confirmed.
According to Reuters, since taking office in January, the administration had not publicly outlined its position on the 2000 law, which grants duty-free access to the U.S. market for more than 1,800 products.
As of 2024, 32 African nations remain eligible for AGOA benefits. Originally extended through 2025 under legislation passed in 2015, the 25-year-old program is now due to lapse at the end of this month.
Its impact has already been weakened by President Donald Trump’s unilateral tariffs of 10% to 30% on several African nations.
Kenyan President William Ruto, South African President Cyril Ramaphosa, and Lesotho’s trade minister have all publicly called on Washington to extend the program.
The International Trade Centre in Geneva has warned that the program’s expiration could trigger a “major drop” in apparel and tuna exports from Kenya, Tanzania, Cape Verde, Lesotho, and Eswatini.
Don’t Miss This:
Lesotho Says US Plans To Extend Africa Trade Deal By A Year
South Africa, the continent’s largest economy, risks a 17% decline in shipments.
UK, US, and South Sudan emerge as top destinations for Kenyan banks’ cross-border cash shipments, with losses concentrated in metals, vehicles, and chemicals, according to Bloomberg.
While AGOA once provided substantial benefits, its effectiveness has eroded in recent years as China expanded its competing exports and the Trump administration imposed country-specific tariffs.
Some African countries, however, could benefit from the shifting trade landscape.
Angola, one of the continent’s top oil producers, has been exempted from the new U.S. tariff measures.
Senegal has also gained an advantage through its exports of titanium and zirconium.
Already the third-largest supplier of zirconium to the United States, behind South Africa and Australia, Senegal’s position could strengthen as both competing nations now face higher levies.
According to the ITC, this may improve Senegal’s competitiveness despite softer U.S. demand.
Don’t Miss This:
South African Businesses Weigh Plan To Help Revive Struggling Johannesburg
Image Credit: Reuters
