AGOA 2025: Enhancing Fair Trade & Sustainable Growth

On July 24th, the Wilson Center played host to the African Growth and Opportunity Act (AGOA) Civil Society and Organized Labor Forum. The event was designed to bring together African civil society organizations, labor unions, and small business partners in order to inform the forthcoming AGOA renewal deliberation in Congress. With its expiration set for September 2025, this renewal is seen by many as a critical juncture to boost the efficiency of this trade and economic development initiative that has been running for over two decades. 

Currently, AGOA operates as a nonreciprocal U.S. trade preference program that offers eligible sub-Saharan African countries duty-free access into U.S markets. From an International Labour Organization (ILO) perspective, it’s important to note that eligibility under AGOA requires adherence to worker rights and human rights standards such as freedom of association, collective bargaining rights, minimum wage legislation enforcement among others. 

Senators Chris Coons (Democrat - Delaware) and James Risch (Republican - Idaho) are co-sponsoring bipartisan legislation aimed at extending AGOA until 2041. Senator Coons has previously voiced his apprehension about short-term renewals potentially destabilizing long-term economic stability within Africa while also introducing uncertainty for both American businesses operating there as well as local enterprises. 

The summit underscored how effective AGOA has been in not only fortifying U.S-Africa relations but also promoting human rights including labour rights along with supporting SMEs especially those owned by women. As Africa continues its upward trajectory economically coupled with rapid population growth , numerous economies have benefited from increased trade activity including substantial trading with China. In 2023 alone, trade imports under AGOA stood at $9.7 billion dollars. 

U.S Secretary of State Antony Blinken highlighted how instrumental AGOA has been in creating thousands of quality jobs domestically while simultaneously diversifying supply chains for US companies leading ultimately consumers getting more affordable innovative products. Blinken also underscored AGOA’s contribution towards a more stable and transparent marketplace which in turn attracts more direct investment into Africa. President Biden is on record supporting the reauthorization of AGOA albeit with amendments to make it more adaptable to climate change, pandemic response and future global demands. 

AGOA has enjoyed bipartisan support in Congress over the years, even former President Donald Trump voiced his approval for the program during his term as part of his African Strategy. As we head into this year's general election slated for November where he's vying for reelection as Republican Presidential nominee, debates in Congress are centered not so much on whether AGOA should be extended but rather how long its extension should last along with any conditions that may accompany such an extension. 

As these developments continue unfolding we shall keep you updated regarding progress made and implications arising from the 2025 AGOA reauthorization.