Nigeria: African manufacturers urge US congress to extend duty-free trade programme

By Zuleihat Owuiye, Mamos Nigeria

Manufacturers in some African countries are lobbying the US Congress to grant a temporary extension of one to two years to the African Growth and Opportunities Act (AGOA), a duty-free trade programme set to expire at the end of September. The programme, established in 2000, provides duty-free access to the US market for thousands of products from eligible African countries.

If AGOA is not renewed, manufacturers will face steep rises in tariffs on their products, including a jump from 10% to 43% for synthetic textiles. This could lead to mass layoffs across the textiles sector and undermine the economic development of African nations.

A delegation of private investors and government officials from Kenya and four other AGOA beneficiary countries recently visited Washington to push for the temporary extension. They met with over 30 Congressional representatives and their aides, receiving universal support for AGOA renewal. However, it remains unclear whether Congress can find a piece of legislation to attach the renewal to.

Without AGOA, the US would become even more heavily dependent on Asian manufacturers. African manufacturers believe that if the programme is not renewed, the business will default to China, undermining the progress made under AGOA.

The AGOA programme has supported hundreds of thousands of jobs in the textiles, automotive, and mining sectors. Its renewal is crucial for the economic development of African nations and for maintaining the competitiveness of African products in the US market.