South Africa is still negotiating Agoa inclusion after the United States (US) House Committee voted for a three-year extension for this important part of legislation that gives African countries duty-free access to US markets for 1 800 products. Committee chairman Jason Smith of Missouri said the proposed Agoa Extension Act would set 31 December 2028 as the new expiration date and “retroactively liquidate tariffs incurred after 30 September”, meaning that US importers might receive refunds on imports that face higher tariffs after this date, Verster says. He points out that Smith emphasised that the US remains committed to working closely with African markets, describing the relationship as mutually beneficial.
The draft includes all members from the previous Agoa text, but South Africa’s inclusion remains uncertain amid tensions with Washington. Although sub-Saharan Africa’s overall exports to the US have dwindled since an initial surge between 2002 and 2008, some countries had specific successes under Agoa, which they would hope to build upon with the extension, Verster says. “Agoa provided major benefits to textile and apparel exporters in Lesotho, Madagascar, Kenya, Ethiopia (before its suspension) and Mauritius.
In addition, South Africa’s citrus and passenger vehicle exports to the US rapidly grew under the Act. “Despite the success of the Agoa in specific areas, total exports to the US remained largely commodities-driven. For South Africa, Nigeria and Ghana, exports mainly consist of oil, metals and precious stones. Consequently, the Act broadly failed to support African-made manufactured goods and drive long-term industrialisation evenly across the region.”
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