US extends AGOA to end-2026, easing short-term trade risks for African exporters

AFRICA – The United States has extended the African Growth and Opportunity Act (AGOA) trade preference programme to December 31, 2026, after President Donald Trump signed legislation reauthorising the scheme.

The decision provides short-term certainty for African exporters that depend on the U.S. market, particularly in apparel, agriculture and manufactured goods.

The extension takes retroactive effect from September 30, 2025, ensuring there is no disruption to duty-free access for eligible sub-Saharan African countries.

This prevents a lapse that could have affected shipments and contracts tied to AGOA preferences.

Under AGOA, qualifying African countries can export more than 1,800 products to the United States duty-free, in addition to over 5,000 products covered under the Generalized System of Preferences (GSP).

The programme has been a cornerstone of U.S.–Africa trade for more than two decades, supporting export-led growth and industrialisation in several economies, including Kenya.

Its reauthorisation will be followed by updates to the Harmonized Tariff Schedule of the United States linked to the extension.

Washington has signalled that the one-year extension is intended to allow time for further reforms aligned with President Donald Trump’s America First trade policy.

This approach emphasises bilateral engagement, stronger reciprocity and improved market access for U.S. businesses.

“AGOA for the 21st century must demand more from our trading partners and yield more market access for U.S. businesses, farmers, and ranchers,” said US Trade Representative Ambassador Jamieson Greer.

South Africa has also welcomed the extension, particularly from an agricultural perspective.

Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa, said the announcement eased concerns that had dominated much of 2025 and early 2026.

 “We always take a keen interest in export-related matters in South African agriculture. Our sector is export-oriented, and each market matters, regardless of our share in it,” he said.

Sihlobo noted that the U.S. market had become a key concern following the introduction of the so-called Liberation Day tariffs, which reduced the competitiveness of South African exports.

“We face 30% tariffs, while these competitors face around 10%,” he said, referring to Chile and Peru. While this did not push South Africa out of the U.S. market, it sharpened the focus on securing tariff reductions and retaining AGOA eligibility.

“But the news out of the U.S. on February 3, 2026, brought a breather,” Sihlobo said, adding that while the Liberation Day tariffs have diluted some of AGOA’s benefits, the programme remains crucial.

Without AGOA, some South African agricultural exports would have faced tariffs of around 33%, including Most Favoured Nation tariffs, in addition to Liberation Day duties.

The U.S. accounted for about 4% of South Africa’s agricultural exports in 2024, when total farm exports were valued at US$13.7 billion.

Exports to the U.S. rose 26% year on year in the second quarter of 2025 to US$161 million, before easing by 11% in the third quarter to US$144 million.

Recent U.S. decisions to exempt certain food products from reciprocal tariffs have also eased pressure on agricultural trade. From a South African perspective, oranges, macadamia nuts and fruit juices benefit from these exemptions, while other products continue to face 30% tariffs.

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