Biden Aims to Enhance U.S.-Africa Trade Program Rather Than Simply Renew It

By Joe Bavier, Nellie Peyton, and Bhargav Acharya

JOHANNESBURG – The Biden administration is seeking to collaborate with Congress to enhance the United States’ key trade program with Africa, rather than simply renewing it without improvements, according to U.S. Secretary of State Antony Blinken.

Initiated in 2000, the African Growth and Opportunity Act (AGOA) provides qualifying African nations with duty-free access to the U.S. market, which is the largest consumer market in the world. The program is set to expire in September 2025, and discussions are currently ongoing for its third reauthorization.

African nations are advocating for an immediate 10-year extension without modifications to reassure businesses and investors. Although there has been strong bipartisan support for AGOA from U.S. lawmakers who view it as essential in countering China’s growing influence in Africa, there are differing opinions regarding necessary updates.

Recently, there has been a push in the U.S. Senate for a swift renewal of AGOA, and President Biden has expressed full support for the initiative’s reauthorization. In a video message to U.S. officials and African trade ministers in Johannesburg, Blinken emphasized, "We don’t just want to extend AGOA; we want to work with the United States Congress to make it even better."

A ‘FORWARD-LOOKING VISION’

Last year, over $10 billion worth of African exports entered the U.S. duty-free under AGOA. However, the U.S. International Trade Commission identified significant shortcomings earlier this year. Notably, more than 80% of duty-free non-petroleum AGOA exports have originated from just five nations: South Africa, Kenya, Lesotho, Madagascar, and Ethiopia.

U.S. Trade Representative Katherine Tai, who is leading the U.S. delegation, conveyed to the African ministers, "We see that there is an opportunity to shape a stronger, new, forward-looking vision for U.S.-Africa trade." Judd Devermont, Biden’s special assistant on Africa, noted that the U.S. delegation arrived in Johannesburg to consult with African officials on feasible options. He stated, "We want to reauthorize AGOA as soon as possible. The absence of the AGOA legislation would be deeply troubling for African economies. However, there are differing views on how to reform it."

African governments and U.S. industry groups express concern that significant changes to AGOA could hinder the program’s renewal in a Congress struggling to pass critical legislation. South African President Cyril Ramaphosa urged for a lengthy extension of AGOA, stating it would encourage investment in factory development.

African nations are also advocating for more flexibility regarding eligibility criteria and a relaxing of the current annual review process for those criteria.

The Biden administration announced on October 30 that it would terminate AGOA participation for Gabon, Niger, Uganda, and the Central African Republic due to governance and human rights issues. Uganda’s Trade Minister Harriet Ntabazi argued that such issues should not be linked to trade, highlighting that Uganda’s exclusion followed a controversial anti-homosexuality law passed in May.

"Mistakes are human. If errors have occurred, reconsider and we can enter negotiations. We have never had this opportunity to sit down and agree. Provide us with another chance," Ntabazi stated.