African manufacturers are urging the US Congress to extend the African Growth and Opportunity Act (AGOA) for one to two years as the program’s expiration date approaches.
AGOA, established in 2000, provides duty-free access to the US market for thousands of African products, supporting hundreds of thousands of jobs in the textiles, automotive, and mining sectors.
The potential expiration of AGOA has raised concerns about the impact on African economies and trade relations with the US. Without an extension, manufacturers would face significant tariff increases, including a jump from 10% to 43% for synthetic textiles. This could lead to mass layoffs and economic instability in countries that rely heavily on the program.
Pankaj Bedi, chairman of apparel company United Aryan, which supplies US retailers like Target and Walmart, led the delegation. He expressed optimism about bipartisan support for AGOA’s renewal, citing meetings with Congressional Republicans and Democrats. However, it’s unclear whether Congress can find a suitable legislative vehicle for the renewal within the next two weeks.
AGOA’s potential demise could also have geopolitical implications, allowing China to fill the trade vacuum. Bedi warned that if AGOA ends, the US would become more dependent on Asian manufacturers, saying, “If this is taken away, by default, the business is going to go back to China.”
The US has not publicly indicated its stance on AGOA’s extension. If renewed, AGOA would continue to support African economic development and counter Chinese influence on the continent. The program has been instrumental in fostering economic ties between the US and Africa, with bilateral trade reaching $104.9 billion in 2024.
