What's happened
The U.S. Congress is considering legislation to extend the African Growth and Opportunity Act (AGOA) until 2028, with provisions to liquidate tariffs incurred after September 2025. The bill aims to support U.S.-Africa trade, especially for textile-dependent economies, amid ongoing negotiations and political tensions.
What's behind the headline?
The proposed extension of AGOA reflects a strategic effort by U.S. lawmakers to stabilize and deepen economic ties with Africa. The bill's focus on extending provisions until 2028 and retroactively liquidating tariffs signals a desire to mitigate recent trade disruptions. The inclusion of provisions targeting apparel and textiles underscores the importance of these sectors for African economies like Kenya and Ethiopia.
However, the political context complicates the extension. Tensions with South Africa, driven by trade disputes and political disagreements, threaten to exclude the country from the initiative. U.S. officials have indicated openness to a one-year extension, with possible exclusions if South Africa does not lower tariffs and non-tariff barriers. This approach aims to leverage trade policy as a tool to influence South Africa's trade practices.
The lobbying efforts by African nations and U.S. industry groups highlight the economic stakes involved. The potential exclusion of South Africa could reshape U.S.-Africa trade dynamics, favoring countries with closer alignment to U.S. trade policies. The outcome will depend on congressional negotiations and the ability of advocates to rally support for a comprehensive extension.
In the broader context, the move underscores the U.S. strategy to maintain influence in Africa through trade, especially as geopolitical competition with China and other powers intensifies. The success of this legislation will likely impact supply chains, investment, and diplomatic relations across the continent, with long-term implications for regional development.
What the papers say
All Africa reports that the bill, led by Rep. Jason Smith, aims to extend AGOA until December 31, 2028, with retroactive liquidation of tariffs after September 2025. The bill is currently under review by the House committee, with advocacy from the AGOA Alliance emphasizing its strategic importance. Meanwhile, Reuters highlights the U.S. government's cautious stance, with officials like Greer suggesting a one-year extension and considering excluding South Africa if trade barriers persist. Greer noted South Africa's need to lower tariffs and non-tariff barriers to qualify for better trade terms, amid recent tensions including tariffs imposed by the U.S. and diplomatic disputes. Both sources agree that the extension is crucial for maintaining U.S.-Africa trade relations, but political and diplomatic challenges remain, especially concerning South Africa's role in the initiative.
How we got here
AGOA, enacted in 2000, provides duty-free access to U.S. markets for over 6,500 products from sub-Saharan Africa. It has been a key element of U.S.-Africa economic relations, supporting exports and jobs. Recent legislative efforts aim to extend its benefits amid concerns over trade disruptions and political tensions, notably with South Africa.
Go deeper
Common question
-
What is the future of US-Africa trade? Key updates on AGOA renewal
The future of US-Africa trade hinges on the renewal of the African Growth and Opportunity Act (AGOA). As Congress debates extending this vital trade agreement until 2028, many are asking what this means for economic relations, tariffs, and political tensions. Below, we explore the key questions surrounding AGOA's renewal and its impact on trade between the US and African nations.
More on these topics
-
The African Growth and Opportunity Act, or AGOA is a piece of legislation that was approved by the U.S. Congress in May 2000. The stated purpose of this legislation is to assist the economies of sub-Saharan Africa and to improve economic relations between
-
William Kipchirchir Samoei Arap Ruto CGH is a Kenyan politician who is serving as the fifth and current president of Kenya since 13 September 2022. Prior to becoming president, he served as the first elected deputy president of Kenya from 2013 to 2022.
-
Jamieson Lee Greer (born 1979 or 1980) is an American government official, attorney and former Air Force officer who is serving as the 20th United States trade representative in the second Trump administration since February 2025. A member of the Republic