Edson Baraukwa | Africa Guardian
The African Growth and Opportunity Act (AGOA), a vital component of US-Africa trade relations, faces an uncertain future as partisan disagreements in US Congress have derailed efforts to renew the scheme this year.
Diplomats and industry advocates had hoped to secure a renewal of AGOA as part of Washington’s year-end budget deal to avoid a government shutdown on December 20. The scheme, which provides duty-free access to the US market for qualifying sub-Saharan African nations, currently benefiting 32 countries, is set to expire in September 2025. However, despite intense lobbying efforts, the compromise bill released on December 17 failed to include any provision for AGOA’s renewal.
While there is bipartisan support for the initiative, partisan tensions appear to have derailed its passage. Democratic members of the House Ways and Means Committee, led by Richard Neal of Massachusetts, expressed concerns about a rushed reauthorization that lacked stronger labour and environmental standards. On the other hand, Republicans grew frustrated with the inclusion of other trade priorities, including a scheme with Haiti and trade assistance for displaced US workers.
House Foreign Affairs Committee Chairman Michael McCaul and his Democratic counterpart Gregory Meeks both voiced support for AGOA, but disagreements over other provisions, including the Haiti trade deal, stalled progress. “The hold-up right now is that the Minority Leader [Hakeem Jeffries of New York] wants the Haiti portion in,” McCaul said, adding that Ways and Means Chairman Jason Smith was strongly in favor of AGOA’s renewal.
Consequences of Delayed Renewal
The failure to renew AGOA in time could have significant economic implications for both the US and African countries. It threatens millions of dollars in US investment and jeopardizes thousands of jobs across the continent. The apparel sector, in particular, is already seeing a pullback from companies uncertain about the future of the trade scheme.
Prosper Africa Coordinator British Robinson emphasized the importance of AGOA for US investors, noting that it affects supply chain resilience and investment strategies. “US investors very much want AGOA reauthorised, because it affects their orders on the continent and the resiliency of their supply chains,” Robinson told The Africa Report.
However, not all reactions have been negative. The Washington-based Coalition for a Prosperous America, which lobbies against trade deals they view as harmful to American interests, opposed using the Continuing Resolution to extend AGOA. They argued that such moves contradicted President-elect Donald Trump’s “America First” trade agenda. Chairman Zach Mottl criticized the potential renewal as “a slap in the face to the incoming administration,” asserting that it undermined the focus on domestic economic priorities.
With Congress failing to act, the future of AGOA remains uncertain, leaving African countries and businesses in a precarious position as they wait for further developments.
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