US Renews Trade Pact with African Countries

Trade Pact (News Central TV) Trade Pact (News Central TV)
The US renews a trade pact with African countries. Credit: AFP

The United States has renewed the African Growth and Opportunity Act (AGOA), restoring duty-free access to the US market for eligible African countries after the trade programme lapsed last year.

US Trade Representative Jamieson Greer said on Tuesday that President Donald Trump had signed a law extending AGOA through December 31, 2026, with retroactive effect from September 30, 2025, when the agreement expired.

Greer said the renewed pact must be updated to reflect current US trade priorities, noting that Washington expects greater reciprocity from its partners.

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He said the administration would work with Congress over the next year to modernise the programme to align it with broader US trade policy.

Trade Pact (News Central TV)
The US renews trade pact with African countries. Credit: Hoosier Ag Today.

AGOA, which has shaped US-Africa trade relations for 25 years, allows selected African countries to export goods to the United States without tariffs.

The programme covers 32 African nations and has enabled billions of dollars’ worth of exports annually, including vehicles, textiles, agricultural products and energy resources.

The agreement’s expiration last September disrupted trade flows, affected thousands of jobs and forced exporters to absorb higher tariffs.

According to data from the United States International Trade Commission (USITC), AGOA exports totalled $8.23 billion in 2024.

South Africa accounted for about half of that figure, driven largely by car exports, precious metals, and agricultural produce. At the same time, Nigeria contributed roughly one-fifth, mainly through oil and other energy products.

Smaller economies were also impacted. Lesotho’s textile industry, the country’s largest employer, suffered significant losses following the lapse of the deal, prompting protests in the capital, Maseru, in October over job cuts linked to new US tariffs. Lesotho exported about $150 million worth of goods under AGOA in 2024.

President Trump has used tariffs as a key tool in reshaping global trade relations, and US officials say the renewed AGOA framework will be reviewed to ensure it delivers greater benefits to American businesses while sustaining trade ties with Africa.

 

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