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Washington’s flagship economic policy for Africa was effectively killed after US President Donald Trump this week reset the global trading order, Africa watchers on Capitol Hill told Semafor.
The African Growth and Opportunity Act, the preferential trade program which has given sub-Saharan African countries tariff-free exports to the US since 2000, is set to expire this September if Congress does not renew it. Trump wants countries to negotiate their trade terms on a bilateral basis, doing away with the multilateralism and free trade pacts like AGOA represent.
But analysts said African countries would need to work together to mitigate the worst impacts of the reset. “There is only one way forward: Coordinate and strategize together first,” said Hannah Ryder, founder of Development Reimagined, a consultancy.
As one Hill staffer told Semafor, AGOA’s chances of renewal are now “narrow.” Another Congressional aide said: “While it’s not dead, there are few options to move it forward. Any business planning on its continuation now must assume that the authority will lapse.”
Read on for African countries’ next steps after AGOA’s demise. →
