US officials don't believe AGOA legislation will be renewed before end of current administration

JOHANNESBURG - Amid calls for the early renewal of the Africa Growth and Opportunity Act (AGOA), US trade officials don’t believe 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 US is set to expire in 2025.

While the Biden-Harris administration has endorsed an early renewal it's now unlikely to happen this year.

The final decision on the renewal and the extension of AGOA is in the hands of the US congress.

Earlier in the year a bipartisan group of senators introduced a bill to renew the US trade pact with sub-Saharan Africa ahead of its expiration in a year.

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.

Assistant US trade representative for Africa Connie Hamilton said that the upcoming US elections 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.”

Congress is also expected to decide on the lifespan of AGOA.