U.S. House of Representatives approved extension of the African Growth and Opportunity Act until December 31, 2028

The U.S. House of Representatives has approved a three-year extension of the African Growth and Opportunity Act (AGOA), first enacted in 2000 under President Bill Clinton, extending the program until December 31, 2028. The bill was passed by a vote of 340 to 54, following President Donald Trump’s decision to suspend the agreement in October. Nevertheless, the requirement for Senate approval and final sign-off by Trump means that uncertainty persists for participating countries.

AGOA provides 32 sub-Saharan African countries with duty-free or reduced-tariff access to the U.S. market for thousands of products, including iron and steel. The program aims to accelerate Africa’s integration into the global economy and encourage industrial investment. The U.S. market is particularly critical for the automotive and steel sectors, yet whether duty-free access will continue will ultimately depend on the outcome of the political process in Washington.

While the extension offers short-term relief for companies facing recently imposed U.S. tariffs, the scope of the program and country-specific eligibility conditions have yet to be clarified. In particular, uncertainty remains over whether South Africa will be included in the renewed arrangement.

In recent months, political tensions between the United States and South Africa have increasingly spilled over into trade relations. The Trump administration has opted not to reduce the 25% tariff imposed on South Africa, while neighboring Lesotho saw its rate lowered from 50% to 15%. The U.S. boycott of the G20 Summit in Johannesburg and South Africa’s exclusion from the G20 meeting in Miami have further highlighted the deterioration in bilateral ties.

As the AGOA extension moves to the Senate, these developments are fueling uncertainty for South Africa. The country’s Department of Trade, Industry and Competition stated that, despite its limited duration, the extension provides “necessary breathing space” for businesses and enhances predictability for companies in both Africa and the United States that rely on AGOA.