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AGOA expiration impacts US Africa trade relations

The African Growth and Opportunity Act (AGOA), a multilateral agreement that granted duty‑free access to U.S. markets for thousands of […]

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

The African Growth and Opportunity Act (AGOA), a multilateral agreement that granted duty‑free access to U.S. markets for thousands of African products, has officially expired. Since its launch in 2000, AGOA enabled African nations to export goods to the United States without tariffs, providing a significant boost to their economies. Its termination now leaves the future of U.S.–Africa trade uncertain.

In Kenya, the textile and apparel sector has been one of the biggest beneficiaries of AGOA, with exports to the United States rising from $50 million to roughly $500 million. The loss of the agreement, however, threatens this growth. Pankaj Bedi, CEO of United Aryan clothing factory and chair of the Apparel Manufacturers and Exporters group at the Kenya Association of Manufacturers, warned that Kenyan manufacturers will struggle to compete with Asian exporters without AGOA, and that a collapse of the sector could have severe economic repercussions.

Employment in Kenya’s garment industry is also at risk. More than 66,000 workers—predominantly women—are employed in the textile and apparel sector, and job cuts have already begun in Nairobi’s garment districts. Julia Shigadi, a machinist, expressed her anxiety, noting that her job is her sole source of income.

AGOA had offered African countries hope that their export economies would be shielded from the blanket tariffs the United States announced earlier this year. At the United Nations General Assembly, Kenyan President William Ruto called for a five‑year extension of the pact, while a White House official indicated that the Trump administration supports a one‑year renewal. Experts caution that the expiration of AGOA, combined with new tariffs, could adversely affect several African economies. Raphael Obonyo, a public‑policy expert at UN‑Habitat, warned that while the challenges may appear manageable in the short term, they could have devastating long‑run consequences.

The end of AGOA carries significant implications for trade between the United States and Africa. As the situation develops, the response of the U.S. and African nations will shape a new trade landscape, with particular attention on Kenya, where the textile and apparel sector has long driven economic growth.

Ifunanya

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