U.S. Extends AGOA Trade Pact with Africa Through 2028
Congress has extended the African Growth and Opportunity Act trade agreement through 2028, following a request from the White House for a short-term
The U.S. Congress has extended the African Growth and Opportunity Act (AGOA) through the end of 2028. The provision was included in a broader funding package passed this week, answering the White House's request for a short-term extension while negotiations over the agreement's long-term future proceed.
AGOA is a preferential trade deal offering eligible sub-Saharan African countries duty-free access to the U.S. Market for thousands of goods. It was originally signed into law by President Bill Clinton in 2000. The act's past year has been turbulent, with many Africa watchers expecting it to lapse due to President Trump's general disapproval of such agreements. However, Trump expressed support for a short-term extension just before its previous expiration in September 2025.
The Path to Renewal
Competing bills for AGOA's extension were presented in Congress late last year. One, sponsored by Senator John Kennedy (R-La.), included a provision calling for a review of the U.S.-South Africa bilateral relationship. This followed a public spat between Trump and South African President Cyril Ramaphosa over the latter's handling of what Trump called, without providing proof, a "genocide" against the country's white population. The final extension, signed into law in February, did not include that bilateral review. It kept AGOA in force until the end of this year and provided retroactive benefits for goods sold during the lapse between its expiration and renewal. The new two-year extension now allows long-term negotiations to begin.
Trump's Trade Paradox
Trump's support for a long-term AGOA contrasts with his well-known opposition to preferential trade deals. He has criticized them for removing tariffs on foreign imports without providing equivalent benefits to American exporters. According to the source, Trump complains this worsens the U.S. Trade balance by increasing imports without a corresponding rise in exports, making American companies less competitive. His administration has been outspoken in pursuing a long-term AGOA with more reciprocal benefits for the United States. In practice, this likely means pushing for African countries to reduce or eliminate tariffs on U.S. Exports, mirroring the benefits the U.S. Offers.
Challenges for African Partners
Negotiations for greater reciprocity are complex. American demands must account for how AGOA actually benefits its African partners, or else those exporters may turn elsewhere. While AGOA has notably helped sectors like textiles and apparel, the source states its "benefits aren't substantial enough" to offset the cost if African countries removed tariffs on thousands of goods. Widespread tariff removal would decrease revenue for governments struggling with high sovereign debt. It would also hurt local companies that cannot achieve the economies of scale of larger American firms, rendering them unable to compete with duty-free U.S. Exports.
African exporters now have a wider range of international options, decreasing American use. China grants duty-free access for all exports from every African country except Eswatini, which recognizes Taiwan. Unlike the U.S. Deal, China's agreements apply to all goods without requiring governance standards or reciprocal tariff removal from African partners. Also, intra-African trade is growing under the emerging African Continental Free Trade Area, which aims to create a continent-wide customs union.
The stop-start nature of AGOA renewals has already hurt trade, with African exports to the U.S. Dropping sharply during lapse periods. Talks of reciprocity alongside Trump's heavy tariffs have increased pessimism among experts about what benefits a long-term deal might offer Africa. The source warns that pushing heavy demands for reciprocity could backfire, leading African partners to increasingly turn to China and other markets where they can reach consumers without Washington's conditions. The administration should pursue a long-term agreement while, the source argues, taking into consideration the competitive geopolitical moment and the real needs of African countries to access new markets.
