Africa-Press – Kenya. U.S. business organizations and associations have urged the administration of President Trump to stop excluding African countries from the African Growth and Opportunity Act (AGOA), warning that continued use of the agreement as a political leverage could harm U.S. economic interests and give China greater space to enhance its trade influence on the continent.
These calls came during a hearing held by the Office of the U.S. Trade Representative to review the eligibility of countries for the AGOA program for 2027, in preparation for the expiration of the law on December 31, 2027, unless Congress decides to extend it.
The program currently allows 33 out of 49 countries in sub-Saharan Africa to export their products to the United States duty-free, with Gabon being reinstated to the agreement effective January 1, 2026.
Representatives of the U.S. private sector confirmed that excluding key countries, particularly South Africa, could disrupt regional supply chains and negatively impact U.S. investments, noting that South Africa is a major manufacturing and trade hub on the continent, linked to many industries, especially in the automotive, textiles, and apparel sectors, through integrated regional value chains.
Laird Treiber, Director of Trade and Investment Programs at the Corporate Council on Africa, stated that removing South Africa from the agreement could have “far-reaching and unintended consequences” on U.S. investments, emphasizing that the South African economy is a focal point for trade and investment in Africa.
This comes at a time when several members of the U.S. Congress are calling for a reassessment of South Africa’s eligibility for the agreement due to its relations with China and Russia, as well as its legal stance against Israel before the International Court of Justice.
The African Union has urged the United States not to use the agreement for political purposes, stressing that excluding certain countries for geopolitical disputes or human rights issues hinders efforts for economic integration within the framework of the African Continental Free Trade Area (AfCFTA).
Constance Gaspar, the African Union representative in Washington, stated that granting trade privileges to some countries while denying them to others makes building a unified African market more challenging, asserting that regional integration requires more consistent treatment of all member states.
Regarding Ethiopia, U.S. business institutions have called for re-engagement with Addis Ababa, along with Uganda and Zimbabwe, despite Ethiopia’s benefits from the agreement being suspended since 2022 due to violations related to the war in the Tigray region.
The American Grain and Bioproducts Council confirmed that these countries have shown increased interest in developing ethanol and renewable energy markets, calling for enhanced cooperation with them to serve the agreement’s goals of supporting market-based economies.
The Amhara Association of America opposed reinstating Ethiopia to the agreement, arguing that the country still falls short of meeting eligibility standards related to human rights and the rule of law, amid ongoing fighting in the Amhara region following the end of the Tigray war.
Additionally, lobbying groups representing the U.S. technology sector warned that some African countries are moving towards adopting legislation inspired by European rules regarding digital markets and artificial intelligence, arguing that such regulations could pose barriers to U.S. trade and investment, which may also affect the eligibility assessment of these countries for AGOA.
The Office of the U.S. Trade Representative is expected to finalize decisions on the eligibility of countries for the agreement before the end of the year, notifying Congress of any country recommended for exclusion 60 days prior to implementing the decision.
