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AGOA trade deal expires threatening US Africa trade relations

The African Growth and Opportunity Act (AGOA), a multilateral agreement that has provided thousands of African products with duty‑free access […]

In Kenya, thousands fear job cuts as US-Africa AGOA trade deal expires

The African Growth and Opportunity Act (AGOA), a multilateral agreement that has provided thousands of African products with duty‑free access to U.S. markets, has officially expired after 25 years, leaving the future of U.S.–Africa trade uncertain. Since its introduction in 2000, AGOA enabled African nations to export a wide range of goods to the United States without tariffs. In Kenya, the textile and apparel sector especially benefited, allowing the country to compete with Asian exporters such as Bangladesh and Vietnam. Exports to the U.S. have grown dramatically, rising from $50 million to roughly $500 million today.

With AGOA’s expiration, Kenya’s textile and apparel industry now faces significant challenges. Pankaj Bedi, CEO of United Aryan clothing factory and chair of the Apparel Manufacturers and Exporters at the Kenya Association of Manufacturers, warned that without AGOA the industry has “zero chance to compete with the Asian countries” and may not survive, predicting a rapid collapse. The sector employs over 66,000 people—many of them women—making job security a major concern. In Nairobi’s garment districts, layoffs have already begun. Julia Shigadi, a machinist, said her job is her “bread and butter” and that losing it would severely affect her life.

AGOA’s expiration also raises fears about the impact of new U.S. tariffs on African economies. Earlier this year, the United States announced blanket tariffs of 10 % or higher on certain imports, and African countries had hoped key export sectors would be exempt. At the United Nations General Assembly, Kenyan President William Ruto called for a five‑year extension of AGOA, while the White House indicated support for a one‑year renewal. Experts warn that several African economies could suffer adverse effects from both the end of AGOA and the new tariffs. Raphael Obonyo, a public‑policy expert at UN‑Habitat, noted that while the short‑term impact may seem manageable, the long‑term challenges will be devastating and likely to have broader consequences.

As the situation unfolds, the significance of AGOA’s expiration and its potential impact on U.S.–Africa trade relations will become increasingly clear.

Ifunanya

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