By Bongiwe Dlamini

MBABANE:Eswatini is highly expected to benefit after the United States (US) House of Representatives passed a three(3) year extension of the African Growth and Opportunity Act (AGOA) offering a potential lifeline for the US’s flagship trade initiative with the African continent.

African Business reported on Tuesday that, Act which provides African manufacturers in eligible countries with tariff-free access to the US market, was allowed to lapse on September 30 by the President Donald Trump administration which has proved fiercely sceptical towards international trade agreements.

“But a proposed extension until 31 December 2028, sponsored by Republican congressman Jason Smith, will now head to the Senate for approval after the House voted 340-54 in favour. The vote suggests strong bipartisan support in the lower chamber for AGOA, which was first approved by Congress in 2000. 32 African countries were AGOA beneficiaries when the legislation lapsed in September. Countries must meet governance criteria and be committed to market-based economics to benefit from the act. Countries which do not meet their commitments can be stripped of their privileges – Gabon, Niger, the Central African Republic, and Uganda were all stripped of AGOA privileges from January 2024,” reads the African Business report in part.

It has been reported that, the extension, if approved by the Senate, will bring a renewed level of certainty to African exporters to the US market. 

The International Trade Centre had estimated that the expiry of AGOA would reduce projected exports of AGOA beneficiaries by $189m by 2029, with $138m of that accounted for by reductions in exports of apparel and textile products to the United States, which were expected to register a decline of 9.7% by 2029.

The extension allows eligible businesses who exported to the US after the act lapsed to apply for a refund of tariffs paid.