US renews AGOA after long lapse, restoring duty-free access for 32 African nations – Firstpost

US renews AGOA after long lapse, restoring duty-free access for 32 African nations – Firstpost

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The US has renewed the African Growth and Opportunity Act through 2026, restoring duty-free access for 32 African nations after its expiry triggered job losses and tariff shocks across the continent.

The United States on Tuesday renewed the African Growth and Opportunity Act (AGOA), restoring duty-free access to the US market for dozens of African countries after months of disruption caused by the programme’s lapse.

Jamieson Greer announced that
US President Donald Trump had signed a law reauthorising the pact through December 31, 2026, with retroactive effect from September 30, 2025, the date on which it expired.

“AGOA for the 21st century must demand more from our trading partners and yield more market access for US businesses, farmers, and ranchers,” Greer said.

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Greer said the administration would “work with Congress over the next year to modernize the program to align with” current US policy. Trump has frequently used trade and tariffs — which he has referred to as his “favourite word” — to reshape global commercial relationships.

Expiry had major consequences for African exporters

A central pillar of
US–Africa trade for 25 years, AGOA allows the US to import billions of dollars in duty-free cars, clothing and other goods each year from eligible African nations. The scheme covers 32 countries but expired last September, forcing exporters to pay higher tariffs and triggering job losses across several industries.

In 2024, $8.23 billion in goods were exported under AGOA, according to the United States International Trade Commission. Half of that amount came from South Africa, largely in cars, precious metals and agricultural products. Around one-fifth originated from Nigeria, primarily oil and energy shipments.

Smaller economies suffered steep losses

Smaller AGOA-dependent economies were also severely hit. In Lesotho, the textiles industry — the nation’s largest employer — faced immediate strain after the scheme expired. Hundreds of workers protested in Maseru in late October over job cuts linked to the imposition of new US customs tariffs.

Lesotho exported $150 million worth of goods under AGOA in 2024. Trump had previously described the country as a place “nobody has ever heard of.”

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