African Nations Lobby for Early Renewal of AGOA Amid Concerns Over Jobs and US-China Competition

AGOA, offering duty-free access to U.S. markets for African nations, is due for renewal in 2025, as officials meet to negotiate this extension, which could potentially impact about 240,000 to 290,000 jobs in Africa and further escalate competition with China.

The African Growth and Opportunity Act (AGOA), which allows sub-Saharan African countries duty-free access to U.S. markets, will be high on the agenda at a three-day forum in Johannesburg, South Africa, which started on Wednesday, November 2, 2023.
Officials, including U.S. Trade Representative Katherine Tai, will discuss the possible extension of AGOA and ways to improve its benefits, amid concerns that the act's expiry in 2025 could impact about 240,000 to 290,000 jobs in Africa.
Countries including Niger, Uganda, Central African Republic and Gabon may be removed from the list of beneficiaries due to their noncompliance with AGOA eligibility criteria, including rule of law and human rights protection.
AGOA has been a success for the clothing industry, with African apparel exports reaching nearly $1.4 billion last year, which is double the amount before AGOA. South Africa and Kenya are among the major beneficiaries of AGOA, exporting goods to the U.S. market worth $3 billion and $1.4 billion respectively in 2022.
There are concerns over the uncertain future of AGOA due to political divisions in the U.S. Congress, as well as fear that attempts to improve the Act may lead to an impasse similar to the delay in the renewal of the Generalized System of Preferences (GSP), another U.S. trade preference program.