File photo of a manufacturing site
Manufacturers and governments across Africa warn that President Donald Trump’s one-year extension of the African Growth and Opportunity Act offers just a temporary respite.
AGOA provides duty-free access to the United States market for almost 2,000 products from eligible sub-Saharan countries.
A cornerstone of US-Africa trade relations for 25 years, it has permitted the US to buy billions of dollars of duty-free cars, clothes, and other items each year.
But with the Trump administration broadly hostile to free-trade deals, it was allowed to expire on 30 September.
The new extension came with fresh demands and fell far short of the multi-year renewal that many African businesses wanted.
“AGOA for the 21st century must demand more from our trading partners and yield more market access for US businesses, farmers, and ranchers,” said US Trade Representative Jamieson Greer.
In Kenya, the owner of a factory that exports Wrangler and Levi’s jeans under the deal said the extension was “good news”.
“But it’s only as good as one season, so the negotiations are not a done job,” said Pankaj Bedi, CEO of United Aryan in Nairobi.
His factory had been forced to pay the extra duties when AGOA lapsed last year, to keep their US buyers on-side, pushing the company and its 10,000 workers to the brink of collapse.
