AGOA Expires: Trump Backs Renewal, African Nations Seek Alternatives
The African Growth and Opportunities Act (AGOA), a vital trade agreement between the US and Africa, expired on Tuesday 30 September after 25 years. US President Donald Trump has expressed support for a one-year renewal, but its future remains uncertain as it requires approval from both the House and the Senate. Meanwhile, envoys from multiple African countries have travelled to Washington, DC to negotiate its renewal.
AGOA has been crucial for African countries, providing duty-free access to the US market for thousands of products. It has significantly impacted the apparel sector in nations like Lesotho, Kenya, and Madagascar. Kenya, for instance, exported $470m worth of clothing to the US in 2024, supporting over 66,000 direct jobs, predominantly held by women.
However, the agreement's benefits have been diluted due to US tariffs, which range from 10% to 40% in addition to most-favored-nation tariffs. AGOA imports to the US amount to $10bn, less than 1% of total US imports. The expiration comes at a challenging time for African exporters, who may now consider alternative trade partners like the EU, China, the UAE, and intra-African markets through the African Continental Free Trade Area (AfCFTA) to diversify and maintain export flows.
The renewal of AGOA is crucial for African countries heavily reliant on exports to the US, particularly in the textile, apparel, and agricultural sectors. Trump's support for a one-year renewal is a step in the right direction, but its future depends on congressional approval. African nations are urged to explore alternative trade partners to mitigate potential disruptions in their export flows.
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