A new bill introduced in the U.S. House of Representatives proposes extending the African Growth and Opportunity Act (AGOA) for another three years, setting a revised expiration date for December 31, 2028. The legislation, known informally as the AGOA Extension Act, seeks to restore duty-free access to the U.S. market for qualifying African exports a status that previously lapsed in late September 2025. Should the bill pass, importers who shipped eligible goods to the United States after the lapse but before the law is reinstated could apply for refunds under retroactive liquidation provisions.
What the Extension Covers
Key provisions of AGOA particularly those relating to textiles and apparel, including regional-garment and third country fabric rules are slated for renewal under the proposed extension. This would allow clothing, footwear, and other goods produced under AGOA-eligible conditions to continue entering U.S. markets without customs duties. The extension also aligns certain U.S. customs user fees, such as merchandise-processing fees, with long-term trade deadlines by extending them through 2031.
Crucially, the draft legislation addresses the period between AGOA’s expiration and its potential reinstatement. For goods shipped during that window, importers would have 180 days from enactment to request refunds, and U.S. Customs and Border Protection would be required to reimburse owed duties within 90 days, without interest. This measure aims to ensure minimal disruption for affected exporters and importers.
AGOA: Its Origins and Significance
First signed into law in 2000, AGOA was designed to provide sub-Saharan African countries with preferential access to the U.S. market. Over the years, the law expanded duty-free access to thousands of tariff lines covering over 6,500 products ranging from agricultural and manufactured goods to textiles, footwear, and components for motor vehicles. In many cases, AGOA built upon the earlier Generalized System of Preferences (GSP) program, offering a broader set of tariff-free goods.
The program includes eligibility criteria: to qualify, countries must meet standards related to market-based economic reforms, labor and human rights protections, governance, and trade openness. Annual U.S. reviews determine which African countries remain eligible, and for which goods (for example, apparel exporters must meet specific “Rules of Origin” provisions).
Over the decades, AGOA transformed trade between Africa and the United States. It helped shift African exporting activity away from raw commodities toward value added goods, spurring manufacturing, industrialization, and job creation in several countries. In particular, industries such as textiles, apparel, footwear, and light manufacturing leveraged AGOA’s preferential access to build export led growth.
Economic Stakes and Regional Impact
For many African economies especially those relying on textile and apparel exports the lapse of AGOA earlier this year created severe uncertainty. The extension bill seeks to alleviate that by restoring trade certainty and safeguarding long-established export-import flows.
Historically, AGOA significantly boosted exports from multiple African countries. In Kenya, apparel exports to the U.S. surged over time, transforming the textile industry into a major employer and exporter. Other countries including Ghana, Ethiopia, Mauritius, Lesotho, and Madagascar also saw tangible gains, with exports of garments, processed goods, travel goods, and agricultural produce benefiting from duty-free access. For Ghana in particular, AGOA opened up markets for non-oil goods such as textiles, plant roots, and manufactured travel items.
By reducing export costs through tariff exemptions, AGOA encouraged foreign investment into manufacturing sectors across Africa, facilitated value addition, and supported small and medium-sized enterprises (SMEs). Governments and investors have often credited the act with enabling structural transformation helping shift economies away from raw commodity exports toward diversified manufactured goods and light manufacturing.
Broader Implications and Stakeholder Response
The introduction of the extension bill comes amid mounting pressure from African governments, industry groups, and international trade advocates. Many warn that failure to renew AGOA would jeopardize thousands of manufacturing jobs, undermine years of investment in export capacity, and disrupt fragile supply chains that connect African producers to U.S. markets.
Supporters argue that extending AGOA is not just about preserving existing trade flows it is also about sustaining long-term economic development, encouraging manufacturing and industrialization, and reinforcing transatlantic economic ties. For the United States, AGOA has served as a strategic economic policy aimed at strengthening U.S.-Africa trade partnerships, promoting stability, and supporting job creation on both sides.
However, experts also note limitations and challenges. While AGOA provides a significant competitive advantage for many exporters, its full benefits often hinge on complementary factors such as reliable infrastructure, stable energy, skilled labor, and adherence to governance and regulatory standards. In many African contexts, these conditions remain uneven, limiting how fully countries can capitalize on AGOA’s potential.
Moreover, even under AGOA, some of the continent’s most promising sectors such as agriculture have faced restrictions. While AGOA includes a broad list of eligible products, certain commodities where African countries might have strong comparative advantages (e.g. sugar, tobacco, peanuts, beef) are often excluded under U.S. tariff-sensitive regulations.
What’s Next
The newly introduced bill must still pass through committee deliberations in the House and subsequently receive a favorable vote before becoming law. If approved, it would reinstate AGOA’s duty-free provisions, retroactively address the lapse period, and extend the framework through 2028.
For African exporters from textile manufacturers to small producers of processed goods the extended window could provide breathing space to regain momentum, re-invest in production, and plan for further growth. Governments may also view it as an opportunity to deepen trade-capacity building, strengthen export infrastructure, and pursue longer-term strategies for industrialization.
But the ultimate success of AGOA’s revival will depend on whether politicians follow through, whether beneficiary countries continue meeting eligibility requirements, and whether exporters can navigate broader structural challenges. For now, however, the proposed extension represents a significant step toward preserving and potentially expanding a decades-long partnership between sub-Saharan Africa and the United States.
