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House Panel Approves Three-Year AGOA Renewal; South Africa Not Immediately Excluded

House Panel Approves Three-Year AGOA Renewal; South Africa Not Immediately Excluded
A general view of the Container Terminal at the port in Durban, South Africa, April 10, 2025. REUTERS/Rogan Ward

The House Ways and Means Committee approved the AGOA Extension Act by a 37-3 vote, proposing a three-year renewal of the African Growth and Opportunity Act, which expired in September. AGOA provides duty-free U.S. market access to eligible Sub-Saharan countries and supports hundreds of thousands of jobs. U.S. officials signaled South Africa could face exclusion over trade disputes and tariffs, but the committee did not move to remove it; South Africa says it is working to remain in the programme.

A U.S. House committee on Wednesday approved legislation to extend the African Growth and Opportunity Act (AGOA) for three years, but did not immediately move to exclude South Africa despite earlier U.S. warnings that exclusion was a possibility.

AGOA, first enacted in 2000 to provide duty-free access to the U.S. market for eligible Sub-Saharan African countries and products, expired in September. Observers say the programme supports hundreds of thousands of jobs across the continent and plays a central role in U.S.-Africa economic ties.

The House Committee on Ways and Means described AGOA as "the cornerstone of economic relations between the U.S. and Sub-Saharan African nations," warning that a prolonged lapse could create an opening that other global actors such as China and Russia might exploit.

The committee approved the AGOA Extension Act by a 37-3 vote. The bill would renew preferential trade access for eligible countries for three years and now moves to the full House of Representatives; a floor date has not yet been set.

SOUTH AFRICA FIGHTING TO STAY IN AGOA

U.S. Trade Representative Jamieson Greer had suggested the administration was open to a shorter, one-year extension but indicated South Africa could be singled out for exclusion, calling it a "unique problem." That comment followed an August decision by the U.S. to impose duties of about 30% on certain South African goods.

South Africa's trade ministry says it is taking all possible steps to ensure its continued eligibility for AGOA. Pretoria disputes the U.S. assessment that prompted the tariffs, arguing the duties are based on an inaccurate view of bilateral trade relations and urging negotiations to resolve the dispute.

The bill's passage through committee keeps the prospect of a multi-year AGOA renewal alive, but lawmakers and trade officials will continue negotiations over eligibility criteria and bilateral trade concerns as the legislation moves to the House floor.

Reporting by Nellie Peyton, Alexander Winning and Aaron Ross; additional reporting by Sfundo Parakozov and Daphne Psaledakis. Edited by Alexandra Hudson.

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