U.S. Ends Pivotal African Trade Program

The African Growth and Opportunity Act (AGOA) provided eligible African countries with duty-free access to U.S. markets for over 6,000 products, but expired on September 30, 2025, leaving trade uncertain. While the U.S. government has signaled support for a one-year extension, no legislation has been enacted yet, creating immediate trade disruptions for countries like South Africa, Kenya, and Lesotho.

For over two decades, AGOA has been a pivotal piece of U.S. legislation defining commercial engagement with sub-Saharan Africa. Enacted in 2000, AGOA established a trade preference program, granting eligible sub-Saharan African countries duty-free access to the U.S. market for thousands of products, significantly easing the path for sectors like textiles, apparel, and certain agricultural goods. Its core objectives were to spur economic growth, promote diversified trade, and encourage political and economic reforms, such as the rule of law and market-based economies, in beneficiary nations. It served as a foundational tool for transitioning the U.S.-Africa relationship from one primarily based on aid to a mutually beneficial trade partnership. AGOA’s authorized lifespan, extended multiple times, officially expired on September 30, 2025. This expiration came despite strong lobbying and bipartisan congressional support for its renewal, leaving the future of U.S.-Africa trade in a state of uncertainty.

For African leaders and industries, the continuation of the targets and goals of AGOA remains vital. The trade preference program is credited with creating thousands of jobs, particularly in the apparel sector in Kenya and Lesotho, and boosting non-oil exports.

African governments and businesses view AGOA’s duty-free status as essential for their products to remain competitive against lower-cost producers from Asia. The long-term certainty provided by a trade program like AGOA is considered crucial for attracting and retaining foreign direct investment necessary for building robust supply chains and diversified economies.

“Over 66,000 Kenyans in clothing and textile factories risk losing their jobs if the African Growth and Opportunity Act (AGOA) trade deal with the U.S. is not renewed by September 30,” the Africa digital news agency DW Africa posted on Facebook on Sept. 8. “With estimates that each worker supports about five dependents, nearly 660,000 people could be impacted.”

“AGOA grants duty-free access to thousands of African products and has fueled billions in investment, giving Kenya an edge over rivals like Bangladesh and Vietnam,” DW Africa posted. “Without renewal, Export Processing Zones could downsize, affecting Kenya’s economic lifeline.”

The Trump administration’s posture toward AGOA’s renewal, however, has been characterized by uncertainty. While White House officials had expressed support for a short-term extension to allow for a comprehensive review and modernization of the framework, the administration has introduced new tariffs on imports from some African nations, directly undercut the preferential access promised by AGOA.

Some U.S. critics of AGOA argue that it did not generate sufficient reciprocal benefits for U.S. businesses, with some suggesting a need to shift toward free trade agreements or geopolitical goals, such as securing access to critical minerals.

The consequences of AGOA’s expiration are already being felt. African exports that previously entered the U.S. duty-free now face higher Most-Favored-Nation (MFN) tariff rates, with some apparel and textile products facing double-digit tariffs. This significant increase in costs is a severe blow to vulnerable industries, threatening job losses and a reduction in export revenues.

Moving forward, the post-AGOA landscape presents a critical crossroads. African countries are being forced to pivot, intensifying efforts to leverage the African Continental Free Trade Area (AfCFTA) to build regional self-sufficiency and seeking to expand trade with other global partners like China and the European Union. For the United States, the lapse of AGOA jeopardizes its economic influence on the continent and risks ceding ground to strategic rivals.

While a short-term extension remains possible, the ultimate path for U.S.-Africa trade relations will likely involve either a heavily modified and modernized AGOA that includes new reciprocal terms or a shift to an array of bilateral trade agreements, forcing a new, more challenging era for commerce between the two continents.

Photo of women in Ghana sewing shirts in a factory for export on Oct. 13, 2015. Photo by Flickr/World Bank, CC BY 2.0.