AGOA extension passed for onward approval by US Senate

The extension of the Africa Growth and Opportunity Act (AGOA) has received strong bipartisan support in the United States (US) House of Representatives and has been passed for onward approval by the Senate.

But South Africa is not yet guaranteed continued duty-free access to the US market, as Democrats in the House warned during brief debate on the bill.

Republicans have also made it clear that extending AGOA is not only about trading with Africa, but is also intended to curtail influence from Russia and China on African markets, especially critical minerals.

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South Africa’s relations with the US have been strained since President Donald Trump returned to the White House, falsely insisting that white citizens are being persecuted in the country.

With the AGOA having lapsed last September, more than thirty African countries, including South Africa, are no longer exempt from duties on their exports to the US.

The bill passed by the US House of Representatives in the early hours of Tuesday morning, South African time, will extend the preferential access conditions by three more years.

Republican Congressman Jason Smith, however, warned that stringent eligibility criteria will apply and countries will be subjected to annual reviews.

“To be eligible, countries must also ensure they are not undermining America’s national security or foreign policy interest.”

Meanwhile, the Democrats’ Lloyd Doggett pointed out that Trump could still decide to exclude countries from this arrangement if they fall out of favour with him.

“I think that trade is especially important at this time after the profound damage done by the consistent disrespect by President Trump of Africans, unless they happen to be white Afrikaners.”

The bill will now be sent to the Senate for approval before it lands on Trump’s desk.