A US House committee is set to consider a three-year extension of the African Growth and Opportunity Act on Wednesday, after it lapsed in September. However, South Africa risks being left out due to ongoing trade tensions with the Trump administration. The initiative, vital for African exports, has supported hundreds of thousands of jobs across the continent.
The African Growth and Opportunity Act (AGOA), enacted in 2000, grants duty-free access to the US market for eligible sub-Saharan African countries and their products. This program has been crucial, with estimates suggesting it sustains hundreds of thousands of jobs in Africa. It expired in September, prompting renewed legislative efforts in Washington.
On Wednesday, the US House Committee on Ways and Means will review the AGOA Extension Act, marking the most notable congressional advancement toward renewal. The draft proposes a three-year extension but includes no specific provisions for South Africa. Amendments could be considered before the committee votes on advancing it to the full House.
Tensions between Pretoria and the Trump administration have escalated this year, fueled by trade disputes and President Donald Trump's criticisms of South Africa's laws addressing racial inequality. US Trade Representative Jamieson Greer stated on Tuesday that the administration is open to a one-year extension but views South Africa as a "unique problem." He emphasized that South Africa must reduce its tariffs and non-tariff barriers on US goods to prompt the US to lower its 30% duties on South African exports.
South Africa has countered that the Trump administration's tariffs stem from an inaccurate assessment of bilateral trade. Meanwhile, a Senate bill introduced in October calls for a two-year AGOA renewal alongside a review of US-South Africa relations, though it awaits committee action.
South Africa's trade ministry spokesperson affirmed the country's commitment to securing inclusion in any extension. The outcome remains uncertain, hinging on negotiations and legislative progress.
