The Future of AGOA: A Crucial Trade Deal in Jeopardy

The African Growth and Opportunity Act (AGOA), a vital duty-free trade programme between the U.S. and eligible African countries, faces expiration. Without clear indications from Washington on an extension, African officials are concerned about potential economic repercussions, including reduced exports and job losses, highlighting the trade deal's significance for regional economies.

As the end of September approaches, African officials and business executives express growing concerns over the potential expiration of the African Growth and Opportunity Act (AGOA), a duty-free trade programme with the United States, without any indication from Washington about its future.

AGOA, enacted in 2000, plays a key role in fostering investment, job creation, and economic growth across 32 eligible African nations by giving them duty-free, quota-free access to the U.S. consumer market. However, beneficiary countries are required to maintain market-based economies, good governance, and openness to U.S. investments and trade.

The unresolved status of AGOA is causing apprehension, as its possible abrupt termination threatens to curtail exports, investments, and employment opportunities across Africa. Kenya and South Africa are among the nations scrambling to secure bilateral trade agreements with the U.S. to safeguard their economic interests amidst this uncertainty.

(With inputs from agencies.)