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US House Passes Three-Year AGOA Renewal as Senate Fight Looms Over South Africa

Senate action now determines whether duty-free access returns for key African exporters, including South Africa.

Overview

  • Lawmakers approved the extension 340–54, proposing reauthorization through 2028 with restored apparel provisions, third‑country fabric rules, and duty refunds for goods shipped after the September 30, 2025 lapse.
  • Attention shifts to the Senate, where a rival bill by Senator John Kennedy seeks a shorter, two‑year renewal with punitive review criteria that could target South Africa’s eligibility.
  • South Africa’s trade minister Parks Tau welcomed the House vote as providing needed certainty, saying renewal would support AfCFTA-linked regional value chains and offer relief in the context of US tariffs.
  • African manufacturers and officials urged swift Senate passage after the lapse forced exporters to absorb higher costs, including reported 33% tariff increases for some Kenyan goods and pressure on tens of thousands of apparel jobs.
  • The World Bank warned that failure to secure renewal threatens export-led growth in highly exposed economies such as Côte d'Ivoire, Kenya, Lesotho, Madagascar, Mauritius, and South Africa.