By Kamlesh Bhuckory.
United States (US) lawmakers agreed to extend a trade preference program with African nations until the end of 2028.
The Agoa Extension Act received bipartisan support in the House on Tuesday, passing by 370 votes to 48 and mirroring a Senate vote in early August. The final hurdle is President Donald Trump’s signature.
Even if Trump signs the act, African countries in the program would still face industry-specific tariffs, while those found to have failed to prevent forced labour in their supply chains, to the detriment of American workers, could face additional levies.
The forced-labour levies are part of Trump’s effort to reconstruct his tariff wall after the Supreme Court struck down his sweeping import duties.
“This extension provides greater predictability for eligible sub-Saharan African countries and businesses trading with the United States, while creating further opportunities to strengthen and expand trade and investment relations,” Mauritius’ Ministry of Foreign Affairs, Regional Integration and International Trade said in a statement on Wednesday.
Agoa was first enacted in 2000.
The US and sub-Saharan African nations exchanged about $50 billion of goods in 2022, according to an analysis by the US Trade Representative’s office. The trade program encompasses more than 30 African countries, excluding those that violate US terms of agreement or which have graduated from the program based on economic growth.
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