What's happened
The US signed a one-year extension of the African Growth and Opportunity Act (AGOA) until December 31, 2026, with plans to modernize the program. The extension, signed into law by President Trump, is a temporary measure after the previous expiration in September 2025, affecting trade and exports from African nations including Lesotho, Nigeria, and South Africa.
What's behind the headline?
The extension of AGOA reflects a strategic move by the US to maintain influence in Africa while signaling a shift towards a more demanding trade policy. The one-year renewal, coupled with plans to modernize the program, indicates a focus on leveraging trade for broader geopolitical and economic objectives. Lesotho's textile sector, heavily reliant on AGOA exports, faces ongoing uncertainty, highlighting the fragility of trade-dependent economies. The US's emphasis on demanding more from trading partners suggests future negotiations will be tougher, potentially leading to further disruptions or reforms in African trade policies. The strained relations with South Africa, driven by US accusations of discrimination and economic policies, complicate the broader US-Africa trade landscape, making the renewal a cautious step rather than a definitive solution.
What the papers say
All Africa reports that the US signed a one-year extension of AGOA, emphasizing the program's importance for African exports and US trade policy. France 24 highlights the broader context of Trump's trade approach, including threats of tariffs and the need to modernize AGOA to align with 'America First' policies. Both sources note the impact of the expiration on trade flows and jobs, especially in textiles and energy sectors, and the US's intent to renegotiate the program for future benefits. The contrasting tone between the sources underscores the US's strategic use of trade policy as a tool for geopolitical influence and economic reform, with France 24 providing a more detailed analysis of the political implications.
How we got here
AGOA, enacted in 2000, provides duty-free access to the US market for over 1,800 products from 32 African countries. The program's expiration last September disrupted trade flows and threatened jobs, especially in sectors like textiles in Lesotho. The US aims to renegotiate and modernize AGOA to better align with current policies and economic goals, amid strained US-South Africa relations and broader trade policy shifts under President Trump.
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Common question
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What Does the Extension of AGOA Mean for African Exports?
The US has extended the African Growth and Opportunity Act (AGOA) until December 2026, signaling a continued focus on trade relations with Africa. This extension impacts how African countries export goods to the US and raises questions about future trade policies. Below, we explore what this extension means for African exports, how the US plans to modernize the program, and what it means for US-Africa relations.
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