US Extends AGOA For Only One Year Up Till 31 December 2026

On 3 February 2026, Donald Trump affixed his presidential approval to the piece of legislation to reauthorize the African Growth and Opportunity Act (AGOA). First, the House voted for a three-year extension, then the Senate reduced it to just one year, in line with President Trump’s intent and spirit.

Previously, President Obama extended #AGOA for ten years from 2015 to 2025, and the AGOA ended on 30 September 2025. The new AGOA is only valid for about a year and will be effective retroactively from that expiry date till the 31 December 2026.

“AGOA for the 21st century must demand more from our trading partners and yield more market access for US businesses, farmers, and ranchers to build upon the benefits it has historically provided to Africa and the United States. We must also make sure that the program enhances US-Africa trade and will work with Congress over the next year to modernize the program to align with President Trump’s #AmericaFirst Trade Policy.” 

USTR Jamieson Greer

However, its short-term validity appears to signal that the Trump administration has an inclination to move away from multilateral agreements like AGOA, and seems to favor direct bilateral trade deals. It is thus worth noting that although the AGOA has been extended, Trump’s so-called ‘reciprocal #tariffs’ are still in place.

Given the shortened period, African businesses might be reluctant to initiate large #CAPEX in view of the lack of visibility and certainty necessary for long-term investments. It is a brief respite, but African economies must think hard and long about a possible post-AGOA era.

The US reminds countries that AGOA eligibility is contingent upon a market-based economy, political pluralism, the rule of law with due process, and other criteria. The fate of South Africa remains a question mark following alleged ‘violations of human rights.’