US President Donald Trump has signed a one-year extension to the flagship African Growth and Opportunity Act (AGOA) in a move that will be welcomed by African exporters but which leaves the long-term future of US-Africa trade clouded in uncertainty.
The Act – which has provided African manufacturers in eligible countries with tariff-free access to the US market for over a quarter of a century – has been extended to 31 December 2026, with retroactive effect from 30 September 2025, when it was allowed to lapse by the administration.
While the extension of the Act provides some certainty to eligible African exporters to the US, it will disappoint those hoping for a three-year extension following an earlier proposal that passed the House of Representatives. The legislation was amended by the Senate to a one year extension before it reached the president’s desk.
AGOA to be reworked to benefit US
US trade representative Jamieson Greer said that the extension would be an opportunity to rework the Act to ensure that US firms enjoy greater access to African markets.
“AGOA for the 21st century must demand more from our trading partners and yield more market access for US businesses, farmers and ranchers to build upon the benefits it has historically provided to Africa and the United States,” said Greer.
“We must also make sure that the program enhances US-Africa trade and will work with Congress over the next year to modernise the program to align with President Trump’s America First Trade Policy.”
Missed opportunity?
Writing in Foreign Policy, Landry Signé, senior fellow at US thinktank the Brookings Institution, said that the one-year extension was a missed opportunity for the US.
“Such an abbreviated extension perpetuates uncertainty and discourages sustained, long-horizon investment – underscoring the importance for a durable and predictable US-Africa trade framework to achieve mutual prosperity.
“From the United States’ perspective, AGOA has consistently contributed to US economic and strategic interests by supporting jobs, increasing access to critical minerals and enhancing energy security – all crucial goals for the Trump administration’s America First agenda.”
Nevertheless, the extension will bring some economic benefits. The International Trade Centre had estimated that the expiry of AGOA would reduce projected exports of beneficiary countries by $189m by 2029, with $138m of that accounted for by reductions in exports of apparel and textile products to the United States, which were expected to register a decline of 9.7% by 2029.
When the legislation lapsed in September, 32 African countries were AGOA beneficiaries. Countries must meet governance criteria and be committed to market-based economics to benefit from the Act. Countries which do not meet their commitments can be stripped of their privileges – Gabon, Niger, the Central African Republic and Uganda were all stripped of AGOA privileges from January 2024.