With T-minus 16 months until the expiration of the Africa Growth and Opportunity Act (AGOA), Washington leaders are working toward a quick—and lengthy—reinstatement of the free-trade agreement.
Senator Chris Coons (D-Del.) and Senator James Risch (R-Idaho) last week introduced the bipartisan AGOA Renewal and Improvement Act of 2024, with the goal of solidifying the continuation of the preference program between the U.S. and 32 sub-Saharan African nations for more than a decade.
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Under the law, AGOA would remain in effect for 16 years, until 2041. The proposed extension timeframe mirrors the 16-year sunset provision of the U.S.-Mexico Canada Agreement (USMCA)—a model that would provide U.S. businesses interested in sourcing from Africa or investing in its supply chain assurance that the region possesses long-term trade potential, the legislators believe.
“AGOA plays a significant role in U.S.-sub-Saharan Africa trade and investment, as well as in U.S. foreign policy,” Sen. Risch said. “This bipartisan bill aims to refine AGOA’s eligibility criteria, increase transparency, and hold U.S. agencies accountable for their advice to the president,” he added.
According to the Idaho lawmaker, the new legislation will bolster Congress’ involvement in the AGOA eligibility process as well as provide more oversight. “I encourage my colleagues to swiftly reauthorize AGOA and the next administration to pursue a broader, two-way strategy with Africa that goes beyond trade preferences and meets the needs of the 21st century,” he said.
“Over the past 24 years, AGOA has created jobs and economic growth in one of the fastest-growing regions of the world and created investment opportunities for American businesses,” Sen. Coons added. “The AGOA Renewal and Improvement Act is necessary to support continued economic development on the continent while further strengthening ties between the United States and partners in sub-Saharan Africa.”
Coons and Risch’s proposed update would streamline the AGOA eligibility process to ensure that any enforcement actions against countries that violate the terms of the agreement are fair, timely and clearly communicated. It would integrate AGOA with the African Continental Free Trade Agreement (AfCFTA), the continent’s own prevailing trade strategy that supports the development of intra-African supply chains. And it would incentivize AGOA beneficiaries to create utilization strategies to increase their exports under the agreement.
Since it was signed into law in May of 2000, AGOA has created sourcing opportunities for U.S. brands and retailers while promoting sustainable economic development across the region, according to American Apparel and Footwear Association (AAFA) president and CEO Steve Lamar.
“As companies work to diversify out of China today more than ever, immediate and long-term renewal of AGOA for a 16-year period would be incredibly impactful and timely,” he said. “AGOA renewal would bring quality work opportunities for African workers, many of whom are women, as companies commit to retain or grow orders from African factories as vital partners in their sourcing matrices.”
According to the group’s vice president of trade and customs policy, Beth Hughes, the extension of AGOA can’t come soon enough. “Sourcing decisions are already being made for goods that will be shipped after AGOA’s current expiration,” she said. “As we fast-approach the September 2025 expiration date, we do not want to see trade begin to drop off as sourcing is shifted away from African countries.”
Hughes said the three-year lapse of the Generalized System of Preferences (GSP)—which was signed into Trade Act of 1974 and has enjoyed broad, bipartisan support ever since—has confounded trade insiders. The lack of movement on such an important trade program “is fueling speculation that a similar fate awaits AGOA,” she said.
“Action now, well before the program expires, eliminates that uncertainty,” she added.
