AU backs 10-year renewal of Africa-US trade programme

Onome Amuge

The African Union (AU) has called on the U.S. Congress to renew its flagship trade programme, the African Growth and Opportunity Act (AGOA), for an additional 10 years. According to the AU’s top trade official, any changes to the programme should be considered only after the renewal is made.

This call comes as AGOA is set to expire in 2025, and the AU hopes to ensure the continuity of this important trade arrangement.

AGOA was launched in 2000 to provide duty-free access to the U.S. market for qualifying African countries, allowing them to export their goods without incurring any duties. The programme is set to expire in September 2025, and negotiations are currently underway to explore its potential renewal. AGOA has been credited with boosting African exports to the U.S., and any changes to the program could have a significant impact on trade between the two regions.

In his address to the gathering of African trade ministers and U.S. officials, Albert Muchanga, the AU’s Trade Commissioner,emphasised the need for a long-term extension of AGOA to provide certainty for investors and businesses. He stated that anything less than a 10- to 20-year extension would create uncertainty and hinder the programme’s ability to achieve its goals.

Muchanga also urged the ministers to form a common position on the future of AGOA that would prioritise the interests of African nations.

A group of African ministers is set to meet with U.S. officials, including U.S. Trade Representative Katherine Tai, to advocate for the renewal of AGOA. In addition to the planned meetings on Friday and Saturday, the ministers have also been lobbying U.S. legislators for support of the renewal.

The Biden administration and U.S. legislators have expressed their support for AGOA, but they have also expressed interest in making changes to the programme. In particular, Constance Hamilton, the Biden administration’s top trade official for Africa, has suggested that Congress should consider changes that would make AGOA more effective and impactful.

However, some African governments and U.S. industry associations have raised concerns that any efforts to modify the program during the renewal process could slow down or even derail its reauthorisation.

“If there are any enhancements to be made, those should be done after the extension,” Muchanga said.

The African Growth and Opportunity Act which was signed into law by President Bill Clinton in 2000, was initiated  to foster stronger economic ties between the U.S and Sub-Saharan African countries, while also supporting economic development in Africa. It has been renewed twice since its initial enactment, and it is currently set to expire in September 2025.

Under AGOA, most agricultural and manufactured products exported by eligible African countries can enter the U.S. market duty-free.

Approximately 35 African countries, including Nigeria, are eligible to participate in the programme. However, eligible countries can lose or regain eligibility if they fail to meet the programme’s criteria.

In 2022, African exports to the U.S. under AGOA totaled over $10 billion, reflecting the programme’s value to African nations.