U.S. officials visiting South Africa this week to meet African trade ministers will face calls to reauthorise theDespite longstanding bipartisan support from lawmakers, who view Washington's flagship African trade initiative as critical to taking on China, deep dysfunction on Capitol Hill and divisions over the need for updates have raised doubts.
Apparel has been the standout success story of AGOA, which launched in 2000 to help develop African economies and foster democracy. "We've been struck by how open the opportunity is now for us," South African Trade Minister Ebrahim Patel said last week. Capturing even a fraction of that business could prove transformative for Africa. But companies need clarity, he said, adding: "If it is not renewed until two years from now, these current investment decisions are going to bypass Africa".The USFIA survey found that 45% of respondents had already reduced sourcing from AGOA countries over renewal uncertainty, while another 45% plan to cut sourcing from the continent if there is no reauthorisation by June 2024.
And there is another obstacle to a quick reauthorisation, namely a well-intentioned desire to improve AGOA.highlighted major shortcomings. Such talk worries apparel company executives, who point to the troubled fate of the Generalized System of Preferences - the largest and oldest U.S. trade preference programme.