WASHINGTON –– Facing expiration of a law that provided beneficial markets for 2,000 products from African partners for 25 years, advocates, professors, diplomats and members of the US government strategize on ways to preserve economic cooperation with the US despite President Donal Trump’s America first trade policy.
The African Growth and Opportunities Act Civil Society Organization Network was expected to deliver recommendations soon for preserving and strengthening US African trade relations to Congress, the Trump administration, and African governments.
The African Growth and Opportunity Act has given eligible Sub-Saharan African countries duty-free access to US markets for almost 2,000 products, including petroleum, auto parts and apparel, for 25 years in an effort to promote economic growth and political stability.
However, the law would expire this September unless renewed, and with President’s Trump’s America first trade agenda, the continuation of the law that benefits trade from Sub Saharan Africa was seriously in doubt, according to panelists.
Fred Oladeinede, the chairman of the network, emphasized that rather than working against the Trump administration’s policy, there should be an effort on behalf of the Sub-Saharan African countries to work within the framework of President Trump’s trade agenda to create a better and mutually beneficial version of AGOA.
“What I want us to do is to answer the questions that the administration is asking through the report that the [US Trade Representative] published on the 31st,” said Oladeinde. “Let us answer all those questions so that we can get better support from the administration.”
Oladeinde particularly stressed the importance of implementing changes within the 90-day pause on reciprocal tariffs as an “opportunity to convince the president” of the value of trade with Africa. Specifically, he outlined four main recommendations for African countries to make their trade policy more in line with Trump’s demands:
- Diversify their exports to reduce dependency on specific products and markets
- Enhance trade infrastructure to facilitate smoother operations
- Strengthen bilateral relations with the US
- Address non-tariff trade barriers, such as regulatory standards, intellectual property rights, and customs procedures
Even though he stressed that the African trade law has been a net-positive for Sub-Saharan African countries, Oladeinde pointed out that it has not necessarily resulted in more foreign direct investment from the US, which is one of the ways a “new” African trade law could be improved.
Although there is still skepticism about President Trump’s support for renewing the law, support remained widespread on both sides of the aisle in Congress.
For example, Rep. Sheila Cherfilus-McCormick, D-FL, who sits on the House committee on Africa, has been a vocal advocate of the renewal of AGOA.
“Congress cannot afford to miss the mark on the timely reauthorization of [African Growth and Opportunity Act] AGOA,” Cherfilus-McCormick said. “Reauthorization must reflect this current global context, Africa’s growing economic integration with a market of 1.5 billion consumers, and rapidly growing industries such as critical minerals, technology, and digital services.”
At the same time, however, Professor Robert Destro, the former assistant secretary of state for democracy, human rights during President Trump’s first term, said that while he supported the renewal of African trade law, the focus on the conversation should be centered more around creating good trade agreements between the U.S. and individual African nations.
“[The African Growth and Opportunity Act] AGOA is not the solution to a problem, it’s a framework,” said Desto. “Even countries that are ‘ineligible’ under AGOA can come to the table and negotiate and if they don’t have a free market or that people take bribes, you stop it. In the end, like I say, the AGOA criteria are just good business criteria.”
Ambassador John Kayode Shinkaiye, the former chief of staff to two African Union Commission chairpersons, stated that Africa needed to strengthen its “trade relationship with the US beyond AGOA.” He firmly emphasized that a termination of the African trade law in favor of the resumption of Trump’s reciprocal tariffs would have disastrous results for many African countries.
“The imposition of these tariffs is expected to have profound economic implications for the affected African countries. Countries like Lesotho and Madagascar, which heavily relied on textile exports to the US, may experience significant economic downturns due to the reduced market access,” said Shinkaiye.
Shinkaiye stressed that while this change in Trump’s trade policy in addition to the cessation of USAID programs that provided substantial aid to Africans, has given African leaders a “wake up call” to be less dependent on foreign aid. He stressed that the continuation of the African trade law is hugely important to both African countries and the US.
“I believe that a 10 year extension will be more beneficial to both parties. This will allow the benefits to become more permanent and provide opportunities to eliminate the ills that may be present in the system,” said Shinkaiye. “It also aligns with the US foreign policy goals of promoting economic stability, democratic governance and regional security.”
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