The Bill will now proceed to the Republican-controlled Senate for consideration and approval before being sent to US President Donald Trump for his approval. Trade and Industry Minister Parks Tau has welcomed the passage of a Bill in the US House of Representatives that would renew the African Growth and Opportunity Act (Agoa) for three years, but it’s uncertain whether South Africa will continue to qualify for Agoa after the Bill passes the Senate. The Republican-controlled House of Representativesapprovedthe Agoa Extension Act, which would extend the programme until 31 December 2028, by a vote of 340 to 54 on Tuesday, 13 January.
The House passed H.R. 6500 by a vote of 340-54.https://t.co/bzb0IavYle Agoa, which gave duty-free access to the US market for most exports from 32 eligible African countries,expiredon 30 September last year. The Bill would reinstate the preferential trade pact retroactively to 30 September, also reimbursing importers for duties they have paid in the interval.
“The Bill proposes reauthorisation of Agoa with all beneficiaries included for three years until 2028,” read a statement from South Africa’s Department of Trade, Industry and Competition (Dtic) on Tuesday. “While South Africa, together with other Agoa-eligible countries, has been advocating for a long-term renewal of Agoa with all countries retained in the programme, the current renewal, while short, provides the necessary relief to companies in the context of the tariffs implemented by the United States. This will provide certainty and predictability for African and American businesses that rely on the programme,” it continued.
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Agoa had been central to US-Africa trade since it was enacted in 2000. It has been particularly vital for South Africa, Lesotho and Madagascar. Daily Maverickreportedthat South Africa exported goods to the US worth $3.244-billion under the programme in 2023, which included automotive equipment, agricultural goods and textiles. It has been estimated that thousands of jobs depend on Agoa in South Africa’s citrus sector alone.
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