African manufacturers are making a last-ditch appeal to the U.S. Congress for a one- or two-year extension of the African Growth and Opportunities Act (AGOA), a duty-free trade programme set to expire at the end of September.
Pankaj Bedi, chairman of Kenyan apparel company United Aryan and a member of the Kenya Association of Manufacturers board, told Reuters that delegations from Kenya and four other AGOA beneficiary countries traveled to Washington last week to push for the temporary extension.
AGOA, first enacted in 2000 under President Bill Clinton, grants duty-free access to the U.S. market for thousands of products from African countries.
The programme has been credited with supporting hundreds of thousands of jobs across Africa in industries such as textiles, automotive, and mining.
U.S. lawmakers have also viewed it as a strategic tool to counter China’s growing influence on the continent, Reuters reported.
Despite bipartisan support, an effort last year to renew AGOA for another 16 years failed to reach a vote in Congress.
Since then, the aggressive tariff policies of President Donald Trump have cast doubt on whether there is sufficient political will in Washington to move forward with an extension.
Don’t Miss This:
Kenya Prosecutes Man Over Rhino Horn Trade Years After Ivory Smuggling Conviction
According to Bedi, the African delegation, comprising private investors and government officials, held more than 30 meetings during their visit, including discussions with members of Congress and their aides.
“There was universal support from the Congressional Republicans and Democrats we met, including staffers for House Speaker Mike Johnson, to renew AGOA,” he said.
However, Bedi cautioned that uncertainty remains over whether lawmakers can attach a renewal to a piece of legislation within the next two weeks.
Without an extension, manufacturers face steep tariff hikes on exports to the U.S., including an increase from 10 percent to 43 percent on synthetic textiles.
“It’s like a house of cards that will collapse,” Bedi warned, predicting widespread layoffs in Africa’s textile sector if AGOA is allowed to expire.
The White House, the office of the United States Trade Representative, and the office of Speaker Johnson did not immediately respond to requests for comment.
The White House has also not stated publicly whether it supports an extension.
Bedi warned that the end of AGOA would likely strengthen Asian dominance in U.S. supply chains.
“If this is taken away, by default, the business is going to go back to China,” he said.
Don’t Miss This:
South Africa Grants Foreign Oil Giants Long-term Durban Leases, Tightening Grip On Fuel Supply
Image Credit: News24.com
