Concern over the Future of the AGOA Act Continues
In May this Newsletter pointed out that the African Growth and Opportunity Act (AGOA), which covers trade tariff benefits offered by the USA to Africa, is under threat. African trade ministers are urging the US to overhaul the sweeping trade deal and renew it this year rather than waiting until the duty-free pact expires in 2025. Renewing the AGOA immediately would remove uncertainty about the future of the pact and allow for suppliers and partners to plan better and maintain investments in African economies, according to ministers at the recent US-Africa Business Summit in Botswana. The final decision on AGOA’s renewal will be up to US Congress for approval. On the one hand, African matters are one of the few topic areas where there is almost always bipartisan support; on the other, African matters are often not a priority which could mean the issue could still be on the table in September 2025 waiting for renewal. Additionally, some commentators fear that if Mr Trump regains the White House in the upcoming US Presidential elections, he would kill the agreement.
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