AGOA: Washington calls for a modernization of the agreement

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AGOA: Washington calls for a modernization of the agreement

The African Growth and Opportunity Act (AGOA), the main framework allowing African products duty-free access to the US market, expires in September 2025. Its future is uncertain, particularly due to the new direction of US trade policy since Donald Trump’s return to the presidency in January 2025.

Washington’s position

The Trump administration has imposed a minimum tariff of 10% on all imports, which can reach 50% for some African countries. This directly threatens the export industries of countries such as Mauritius, Madagascar, and Botswana. South Africa and Lesotho were particularly targeted by these measures.

During a press conference, US diplomat Troy Fitrell emphasized that the renewal or modernization of AGOA would have to be debated in Congress. However, the new version would have to take into account economic developments in Africa and aspirations for more balanced trade relations. He also mentioned that some African countries have requested the creation of free trade areas with the United States, an approach Washington says it encourages.

The Trump administration now favors reciprocal bilateral agreements, to the detriment of a multilateral framework like AGOA. Despite bipartisan proposals to extend AGOA until 2041, the White House did not support this initiative, leaving the program on hold.

Modernization Prospects

Discussions surrounding the modernization of AGOA focus on two aspects in particular. First, the program’s compatibility with the African Continental Free Trade Area (AfCFTA) and the need to better adapt the agreement to the current economic realities of the African continent.

Washington is interested in exploring ways to strengthen AGOA so that it complements the AfCFTA’s ambitions and better supports countries achieving middle-income status.

Next Steps

Negotiations between the United States and sub-Saharan African countries are planned for July 2025 to discuss the future of AGOA. Several African countries, including Madagascar, have already taken steps to advocate for the agreement’s renewal and strengthen trade cooperation, particularly in strategic sectors such as critical minerals.

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