End of AGOA Sparks Uncertainty for African Exporters
The expiration of the African Growth and Opportunity Act (AGOA) threatens African exporters, especially in Kenya's textile industry, as US tariffs rise. AGOA offered duty-free access to US markets, benefitting African economies since 2000. Pushed by African leaders, renegotiations face mixed US commitment amid evolving trade dynamics.
- Country:
- Kenya
As the longstanding African Growth and Opportunity Act (AGOA) approaches its expiration, industries across Africa brace for significant competitive challenges. The trade agreement, which has allowed African nations duty-free access to US markets since 2000, is set to end amidst uncertainty over renegotiations and pending US tariffs.
Kenya's textile industry, a major beneficiary, fears losing ground without AGOA, as their exports have significantly grown over the years. President William Ruto emphasized the necessity of extending AGOA, as new tariffs threaten to undercut African competitiveness against Asian rivals like Bangladesh and Vietnam.
The agreement's termination bears significant risk for 1.3 million jobs. African leaders, including Ruto, are negotiating bilateral deals with the US to counter the shifting global trade landscape, even as American interest in a revised trade pact wanes. The fate of thousands hangs in the balance as industries prepare for the worst.
(With inputs from agencies.)
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