Amid calls for early renewal of the Africa Growth and Opportunity Act (AGOA), U.S. trade officials have expressed doubts the legislation will be renewed before the end of the current administration.
The legislation which gives eligible African countries exemption from taxes on their exports to the United States is set to expire in 2025. While the Biden-Harris administration has endorsed an early renewal that is now unlikely to happen this year. The final decision on the renewal and extension of AGOA is in the hands of the U.S. congress.
Earlier this year, a bipartisan group of senators introduced a bill to renew the U.S. trade pact with sub-Saharan Africa ahead of its expiration. The bill proposed a few changes including a review of eligibility to take place every two years and not annually. But Congress is yet to make the final call. Congress is also expected to decide on the lifespan of AGOA.
In a briefing yesterday on the outcomes of the AGOA Forum that held in Washington D.C. last week, Assistant U.S. Trade Representative for Africa, Constance Hamilton, said the upcoming U.S. elections in November and preparations for transition in January next year are likely to take priority.
“I do think as we look at the timeline and all the things that are happening here, it’s unlikely to happen in 2024 but in early 2025 I do expect to see it completed,” she said.
Continuing, she added: “Discussions reaffirmed President Joe Biden’s strong support for the modernisation and reauthorisation of AGOA. Over the past 24 years, AGOA has made a tangible difference in the lives of millions of Africans – new jobs, new business opportunities. But we recognize that we can do much better.”
Also speaking on the subject, the U.S. Department of State’s Deputy Assistant Secretary for African Affairs, Joy Basu, said: “What I can say very briefly is that the administration has expressed its support for an early reauthorisation to AGOA before the bill expires at the end of the Fiscal Year 2025. And so, we have about 14 months left. We have indicated our support for an early reauthorisation, and a reauthorisation as soon as possible.
“Obviously, our colleagues in Congress hold the pen, but if you look at a number of bills that have been introduced already, I think you will see that a longer extension period – at least a stable extension period – is on the table right now, which we would be happy to see in order to give companies and businesses that stability over the period that Congress allows. But if you look at the bills that have been put forward so far, I think that we’re seeing positive trends for somewhere between 10 and 20 years. However, we’ll have to see what Congress decides in its final iteration.”