By Nkiruka Nnorom
The United States Senate has approved a two-year extension of the African Growth and Opportunity Act, AGOA, paving the way for eligible sub-Saharan African countries to continue enjoying duty-free access to the US market until December 2028.
The extension, passed with 90 votes in favour and 6 against, comes as a major relief for African exporters as the current AGOA arrangement was due to expire at the end of September this year.
AGOA, which has been a key plank of US-Africa trade relations for 25 years since its enactment in 2000, allows eligible African countries to export more than 1,800 products duty-free to the U.S. The deal covers agricultural products, footwear, automobiles, textiles, apparel and other manufactured goods worth billions of dollars annually.
Speaking on the development, US Senator, Raphael Warnock, who played a leading role in pushing the extension, said the move would help to “lower the cost of everyday goods and improve our national security by helping stabilize the economies of our global partners.”
The Senate also approved extensions for two Haiti-focused trade programmes — the Haiti Economic Lift Program, HELP, and the Haitian Hemispheric Opportunity through Partnership and Encouragement, HOPE.
The bill will now proceed to the House of Representatives for concurrence before it is transmitted to President Donald Trump for assent.
Since its enactment in 2000, AGOA has been at the core of U.S economic policy and commercial engagement with Africa. Besides providing eligible countries with duty-free access to the US market, it also provides access for more than 5,000 products that are eligible under the Generalised System of Preference programme.
To meet AGOA’s rigorous eligibility requirements, countries must establish or make continually progress towards establishing a market-based economy, the rule of law, political pluralism, and the right to due process.
Additionally, countries must eliminate barriers to U.S trade and investment, enact policies to reduce poverty, combat corruption and protect human rights.
By providing new market opportunities, AGOA has helped bolster economic growth, promoted economic and political reform, and Improved U.S economic relations in the region.
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