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The Trump administration has indicated its support for extending a 25-year-old trade agreement with Africa known as the African Growth and Opportunity Act (Agoa). Agoa provides duty-free access to US markets for 32 African nations, helping to boost manufacturing industries in some of the continent’s least developed countries.
Without congressional intervention, Agoa is set to expire on Tuesday, but there are signs that the Trump White House is open to extending the deal. Senior adviser for Africa, Massad Boulos, expressed the administration’s alignment with Agoa’s objectives, hinting at a possible extension.
While Congress has yet to take up legislation to extend Agoa, there is optimism for a one-year extension. This move would benefit countries like Lesotho, which has seen success in its garment industry thanks to Agoa’s tariff-free access to the US market.
The potential extension of Agoa has been well received by UN trade officials, who emphasize the positive impact it would have on African manufacturing sectors. Pamela Coke-Hamilton from the International Trade Centre believes that renewing Agoa would be mutually beneficial for both African countries and US firms.
An extension of Agoa is crucial for sustaining growth sectors in many African nations, promoting employment, and enhancing foreign exchange earnings. Failure to extend the agreement could lead to a significant drop in exports for countries like Kenya, Mauritius, and Tanzania.
Despite some opposition in the US, Agoa has proven to be instrumental in enabling African countries to compete on a global scale. The preference rates under Agoa have provided a competitive edge for nations like Lesotho and Tanzania, allowing them to thrive in the international market.
Data visualization by Amy Borrett and additional reporting by Aime Williams in Washington
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