Foreign Policy: US faces trade setback as key Africa deal expires

The expiry of the African Growth and Opportunity Act (AGOA), a cornerstone of United States trade policy towards sub-Saharan Africa, is raising concerns over supply chains, industrial competitiveness and Washington’s strategic influence across the continent, Foreign Policy writes.

The programme, which lapsed on September 30, 2025, after 25 years, granted 32 sub-Saharan African countries duty-free access to U.S. markets for more than 1,800 products. 

Although the U.S. House of Representatives has approved legislation to extend AGOA, the measure remains stalled in the Senate amid budget disputes, leaving businesses and investors facing continued uncertainty.

Policy experts warn that failing to renew or replace AGOA could weaken a key instrument of U.S. economic diplomacy as Africa’s population, markets and geopolitical importance continue to grow.

AGOA has long been described by the U.S. State Department as the foundation of economic engagement with sub-Saharan Africa. Supporters say the programme supports U.S. manufacturing, secures access to critical minerals and strengthens energy security.

Although total U.S. imports under AGOA have remained stable — about $8 billion in both 2001 and 2024 — analysts say the initiative has helped sustain U.S. industrial supply chains and supports an estimated 450,000 American jobs linked directly to U.S.–Africa trade.

Automakers such as Ford and General Motors rely on African platinum and rare-earth elements for advanced manufacturing. Michigan, the leading U.S. automotive hub, employs more than 1.1 million workers in its mobility sector.

Agricultural processing facilities in Alabama have expanded to handle African cashew nuts, helping maintain year-round employment and reducing reliance on Asian processing routes. The Port of Virginia has also increased activity handling trade with West Africa, supporting a maritime sector responsible for millions of U.S. jobs.

Textile producers have benefited as well. North Carolina recently exported 300 tonnes of cotton to Mauritius, while African apparel exports to the United States have nearly doubled over two decades, aided by faster shipping times compared with Asian routes.

AGOA has also helped diversify supply chains for critical minerals used in electric vehicles, hydrogen fuel cells and advanced technologies. African countries participating in the programme hold major global reserves of manganese, cobalt, graphite and platinum group metals. These resources have supported U.S. battery development, including a graphite processing facility in Louisiana aimed at reducing dependence on Chinese supply chains.

Energy trade remains another strategic pillar. The United States imports crude oil from AGOA beneficiaries, including Nigeria, Ghana and Angola, while recent shipments of refined fuel from Nigeria’s Dangote refinery to U.S. firms highlight expanding two-way energy cooperation.

Despite bipartisan recognition of AGOA’s importance, political disagreements have delayed long-term renewal. Analysts warn that short-term extensions may not provide the stability needed for investment, potentially allowing rival powers to strengthen their economic influence across Africa.

By Aghakazim Guliyev