Legislation enabling a three-year extension of the flagship US-Africa trade scheme will now head to the Senate for approval
David Thomas The US House of Representatives has passed a three-year extension of the African Growth and Opportunity Act (AGOA), offering a potential lifeline for the US’s flagship trade initiative with the continent.
The act – which provides African manufacturers in eligible countries with tariff-free access to the US market – was allowed to lapse on September 30 by the Trump administration, which has proved fiercely sceptical towards international trade agreements.
But a proposed extension until 31 December 2028, sponsored by Republican congressman Jason Smith, will now head to the Senate for approval after the House voted 340-54 in favour. The vote suggests strong bipartisan support in the lower chamber for AGOA, which was first approved by Congress in 2000.
32 African countries were AGOA beneficiaries when the legislation lapsed in September. Countries must meet governance criteria and be committed to market-based economics to benefit from the act. Countries which do not meet their commitments can be stripped of their privileges – Gabon, Niger, the Central African Republic, and Uganda were all stripped of AGOA privileges from January 2024.
The extension, if approved by the Senate, will bring a renewed level of certainty to African exporters to the US market. The International Trade Centre had estimated that the expiry of AGOA would reduce projected exports of AGOA beneficiaries by $189m by 2029, with $138m of that accounted for by reductions in exports of apparel and textile products to the United States, which were expected to register a decline of 9.7% by 2029.
The extension allows eligible businesses who exported to the US after the act lapsed to apply for a refund of tariffs paid.
Extension receives warm welcome
The extension of the bill was welcomed by Korir Sing’Oei, Kenya’s principal secretary for foreign affairs.
“The adoption of AGOA Reauthorization Bill by Congress is a welcome move for US-Africa trade. President Ruto has been at the forefront in calling on the US government to extend the framework. We trust the Senate equally passes the Bill.”
Democratic congresswoman Terri Sewell was among the bipartisan voices hailing the act’s reintroduction.
“A big win for stronger U.S.–Africa economic ties today. Proud to see the House pass legislation to extend the AGOA trade program for three more years. It will create jobs, foster economic growth, and strengthen the bonds between the U.S. and our African partners. Grateful to our colleagues who joined us in pushing this bill across the finish line. Onward to the Senate!”
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