US Extends Trade Preference Deal With African Nations

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By John Umeh

 

 

 

The United States has renewed its long-standing trade preference arrangement with African countries, restoring duty-free access to the American market for eligible exports after months of uncertainty.

On Tuesday, US Trade Representative Jamieson Greer announced that President Donald Trump had signed into law a reauthorization of the African Growth and Opportunity Act (AGOA), extending the programme until December 31, 2026. The renewal takes retroactive effect from September 30, 2025, when the agreement lapsed.

Greer said the administration intends to recalibrate the initiative to better reflect current US economic priorities.

“AGOA for the 21st century must place greater expectations on our trading partners while delivering increased market access for American businesses, farmers and ranchers,” he said.

Trump, who has consistently described tariffs as a key tool of his foreign and economic policy, has leaned heavily on trade incentives and penalties to reshape US relationships around the world. Greer noted that the administration would engage with Congress over the coming year to update and modernise the programme in line with broader US trade objectives.

For more than two decades, AGOA has served as the backbone of US–Africa trade relations, enabling selected African countries to export goods to the United States without paying customs duties. The programme has supported billions of dollars in annual exports, ranging from automobiles and textiles to agricultural and energy products.

However, AGOA’s expiration last September disrupted trade flows across 32 African countries, forcing exporters to absorb higher tariffs and threatening jobs in several sectors.

Data from the United States International Trade Commission (USITC) show that $8.23 billion worth of goods were exported under AGOA in 2024. South Africa accounted for about half of that figure, driven largely by vehicle exports, precious metals and agricultural produce. Nigeria contributed roughly one-fifth, mainly through crude oil and other energy products.

Smaller economies also felt the impact of the programme’s lapse. In Lesotho, where textiles are the largest source of employment, the loss of duty-free access led to factory cutbacks and protests by workers in the capital, Maseru, in late October. The country exported about $150 million worth of goods to the US under AGOA in 2024.

With the renewal now in place, African exporters have regained temporary relief, though uncertainty remains over the long-term future of the programme as Washington pushes for reforms ahead of its next phase.

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