US AGOA Trade Pact Expiry Threatens African Exports Jobs
US AGOA Trade Pact Expiry Threatens African Exports Jobs

US AGOA Trade Pact Expiry Threatens African Exports Jobs

News summary

The expiration of the African Growth and Opportunity Act (AGOA), a key U.S. trade deal that provided duty-free access for thousands of African goods to the American market, has sparked significant economic concerns across Africa. This lapse threatens hundreds of thousands of jobs and numerous businesses, particularly in sectors like textiles and apparel, which had thrived under AGOA's protections against tariffs. While there is bipartisan support in the U.S. for renewing AGOA, delays and limited renewal proposals have caused uncertainty and immediate financial strain for exporters and manufacturers. African leaders and business groups emphasize that Africa's own trade framework, the African Continental Free Trade Area (AfCFTA), is not yet capable of compensating for the loss of AGOA benefits due to infrastructural and procedural bottlenecks. The African Development Bank President and regional leaders urge leveraging this disruption as an opportunity to strengthen regional value chains, promote green industrialization, and build economic sovereignty centered on private sector involvement. Meanwhile, U.S. lawmakers view AGOA as a strategic counterbalance to China's growing influence in Africa, underscoring the geopolitical stakes tied to the trade pact's renewal.

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