US-Africa trade pact AGOA expires but hopes remain for renewal

The future of the US-Africa preferential trade pact was in limbo after the 25-year-old agreement expired on Tuesday — but hopes for its renewal persist.

The African Growth and Opportunity Act has allowed dozens of countries in sub-Saharan Africa duty-free access to the US market for certain products including fuel, agricultural goods, and textiles. In 2023, US imports under AGOA totaled nearly $10 billion.

For many countries, such as Kenya and Lesotho, the deal has been a cornerstone of trade with the US, and envoys from across the continent have traveled to Washington in recent weeks to lobby for AGOA’s extension.

The deal’s expiration has plunged thousands of factory workers into uncertainty at a time when African countries are already grappling with the impact of new US tariffs that imposed import taxes on many products which were previously duty-free under AGOA.

But there are some signs AGOA will be renewed, with a White House official telling Reuters the Trump administration supports a one-year extension of the pact. It is unclear when or how such a renewal would take place, with earlier reports suggesting an extension might be attached to a stopgap US government funding bill that failed to pass on Tuesday.