Africa’s Trade Ties With The U.S. Seem Loose, But Could Be Fixed In A Few Months Time
Officials from Africa and the United States are set to convene in June or July to discuss duty-free access for Africa to the world’s largest market.
This matter has become more relevant in light of Donald Trump’s massive new tariffs, which have upset global trade.
The potential meeting between the US and Africa was made known by the South African Minister of Trade Parks Tau, who also highlighted the challenges that could affect the reclamation of the arrangement that tariffs superseded, a week ago, when Donald Trump imposed a baseline 30% tariff on all South African exports to the U.S.
“It is going to be difficult to save the African Growth and Opportunity Act, the South African minister stated on Radio 702 Thursday.
“AGOA is due to expire in September, and the continent’s trade ministers are meeting the Democratic Republic of the Congo on Tuesday where they will discuss a collective way forward,” he added.
AGOA (the African Growth and Opportunity Act) has been a cornerstone of US economic strategy and engagement with Africa since its inception in 2000.
The advantages provided under the AGOA deal that benefited many of the poorest countries in Africa have been displaced by President Donald Trump‘s tariffs on the majority of countries, which went into effect on April 2.
According to Tau, discovering other potential markets has become top of mind. South African officials are also now in the process of negotiating with other nations., as reported by Bloomberg.
The AGOA program grants qualifying sub-Saharan African nations duty-free access to the US market for approximately 1,800 items, as well as more than 5,000 products eligible for duty-free access under the Generalized System of Preferences (GSP) program.
To be eligible for AGOA, nations must achieve stringent qualifying conditions, which include progress toward a market-based economy, the rule of law, political pluralism, and due process.
Also, they must remove trade obstacles with the United States, promote poverty-reduction measures, battle corruption, and preserve human rights.
In 2024, 32 nations were eligible for AGOA benefits, which were extended through 2025 by legislation signed in 2015.
