Agoa duty-free programme needs changes, says US trade official

The US should make changes to its flagship trade initiative with Africa that would increase its impact as part of a potential reauthorisation by Congress, a senior US trade official said on Thursday.

Launched in 2000, the African Growth and Opportunity Act (Agoa) grants exports from qualifying countries duty-free access to the US market. It is set to expire in September 2025, but discussions are already being held over whether to extend it and for how long.

“We need to do better,” assistant US trade representative for African affairs Constance Hamilton told a media briefing ahead of a meeting of US officials and African trade ministers in South Africa next week.

“Some countries have benefited greatly from Agoa, but most have not,” she said.

A research report requested by US lawmakers and published earlier this year found Agoa had helped reduce poverty and create jobs in certain countries, particularly for women.

However, more than three quarters of duty-free non-petroleum exports to the US under the programme during 2014-2021 came from only five countries: South Africa, Kenya, Lesotho, Madagascar and Ethiopia.

African governments and industry groups are pushing for an early 10-year extension without changes to reassure business and new investors who might have concerns over Agoa's future.

Such a reauthorisation is also supported by some in Congress, who worry revising the programme could delay or derail its renewal.

Republican senator John Kennedy last month proposed a 20-year extension without changes, stating it would play a key role in deterring “China's growing influence throughout the region”.

Hamilton, however, said the office of the US trade representative hoped Congress would look at measures “to make the programme more impactful” without giving further details.

She said: “Not trying to change the programme and make it better is a wasted opportunity.”