US House of Representatives approve AGOA extension

JOHANNESBURG - The African Growth and Opportunity Act has passed an important milestone for extension by US lawmakers.

South Africa’s inclusion in the program that gives African countries preferential access to US markets remains unclear.

AGOA expired in September.

It hasn't impacted tariffs while an extension was being considered.

READ: SA-US trade relations | US keeping mum on AGOA’s future

AGOA gave sub-Saharan African countries duty-free access to the US market.

The so-called "Trump tariffs" last year wiped out the notion of duty-free access.

If South Africa is excluded from AGOA, various sectors could face tariffs over and above the Trump tariffs.

Toni Waterman in Washington DC explained, "This version of the bill for this extension that passed the House last night and passed overwhelmingly, does not explicitly exclude South Africa. So it remains part of AGOA for now."

Waterman emphasised that South Africa could face exclusion from the trade agreement when the bill is considered by the US Senate or when it goes to US president Donald Trump for approval.

If the bill is approved, the extension will last until the end of Trump's term of office. 

The EFF criticised the US House of Representatives’ decision.

The party says the trade framework serves US interests over those of African economies.

AGOA grants selected African countries duty-free access to US markets.

The EFF says this is conditional on countries aligning with US foreign policy.

The party argues the agreement has failed to drive industrial development or meaningful value addition in South Africa and across the continent.

It says the timing of the extension reflects broader US geopolitical pressures.

The EFF is calling on the government to withdraw from AGOA and instead prioritise trade arrangements that promote regional integration and the African Continental Free Trade Area.

You May Also Like