The Trump administration signals support for a one-year extension of the African Growth and Opportunity Act, which expires today.
Reuters reports that a White House official has confirmed as much. Additionally, a source with knowledge of the matter has told HGI to expect a retroactive renewal for the trade initiative.
More than 30 sub-Saharan African countries are eligible for duty free access to the U.S. market today under AGOA. Established in 2000 to promote economic development, AGOA’s initial authorization was set to expire in 2007, but in 2004 Congress renewed it to 2015. In 2015, the renewal came three months ahead of the expiration date.
Concerns have been running high for weeks over the fate of AGOA as the clock ticked down this time.
Allowing AGOA to expire creates further uncertainty for an industry that has been rocked by an erratic rollout of new tariffs this year. Without a clear line of sight into the future, fashion firms are wary of making the investments necessary to stand up production there. More than 70 percent of respondents to the United States Fashion Industry Association’s Benchmarking Study said securing AGOA for at least another 10 years is essential for them to commit to new investments in the region.
Last year, U.S. imports across all categories under AGOA totaled $9.7 billion, down from $10.2 billion in 2023, according to the United States Trade Representative. Of that, $1.19 billion were textile and apparel imports, nearly 5 percent down year over year.
As AGOA neared expiration, the situation became more dire when tariffs came into play. Several effected nations made the list. Initially Mauritius and Lesotho were among the hardest hit with 40 and 50 percent tariffs, respectively. Ultimately, both were reduced to 15 percent, putting them on par with countries like Ghana, Nigeria and Zambia.
While news of an extension is positive, the industry needs consistency to make the trade initiative effective for both industry and economic development.
