Trump renews lapsed trade subsidy pact with Africa
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Trump renews lapsed trade subsidy pact with Africa
"US President Donald Trump has signed into law a one-year extension of a trade preference program with African countries restoring duty-free access to the US market until the end of the year, the US trade representative said on Tuesday. US Trade Representative Jamieson Greer said the renewal of the African Growth and Opportunity Act (AGOA) applies retroactively from September 30, 2025, when the program expired through December 31, 2026."
"First enacted in 2000, AGOA allows qualifying sub-Saharan African countries to export more than 1,800 products to the United States duty-free. According to the US Trade Representative, to meet AGOA's duty-free eligibility requirements countries must ensure progress toward: market-based economies the rule of law, removal of barriers to US trade and investment enacting policies to reduce poverty combatting corruption protecting human rights"
"In 2024, $8.23 billion (6.96 billion) worth of goods were exported under AGOA, with South Africa accounting for about half, and Nigeria contributed roughly one-fifth, US International Trade Commission data showed. When the program expired in September last year, it disrupted trade flows and threatened thousands of jobs across Africa. The US House of Representatives last month approved a three-year AGOA extension, but the Senate reduced it to one year. The House agreed with this change."
US President Donald Trump signed a one-year extension of the African Growth and Opportunity Act (AGOA), restoring duty-free access to the US market through December 31, 2026, retroactive to September 30, 2025. The administration plans to work with Congress to modernize AGOA to align with America First trade policy. AGOA, enacted in 2000, allows qualifying sub-Saharan African countries to export more than 1,800 products duty-free, conditional on progress in market-based economies, rule of law, removal of trade barriers, poverty reduction, anti-corruption, and human rights protections. AGOA exports totaled $8.23 billion in 2024, led by South Africa and Nigeria. The program's prior expiration disrupted trade and threatened thousands of jobs. The House approved a three-year extension but accepted a Senate amendment limiting renewal to one year. The extension occurs amid strained US-South Africa relations.
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