AGOA Bill Keeps Third-Party Fabric, Goes to September 2027
Sen. John Kennedy's bill to restore African Growth and Opportunity Act trade preferences retains the third-country fabric provision and extends the program until Sept. 30, 2027.
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It also orders the Office of the U.S. Trade Representative to prepare a strategy to expand and deepen trade and investment between AGOA beneficiary countries and the U.S. within 180 days. That strategy should include recommendations of at least five countries to begin negotiations for bilateral trade agreements, or for trade and investment framework agreements. Angola, South Africa, Ghana, Nigeria, Rwanda, Mauritius, Mozambique, Benin, Burkina Faso, Côte D'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, Togo, Burundi, Ethiopia, Democratic Republic of Congo, Eritrea, Eswatini, Madagascar, Malawi, Liberia, Uganda, Somalia, Zambia and Sudan and some small island nations are already covered by TIFAs, either individually, or through regional organizations they belong to.
The bill also is critical of South Africa, and says, "the foreign policy actions of the African National Congress have long ceased to reflect its stated stance of nonalignment, and now directly favor the People’s Republic of China, the Russian Federation, and Hamas, a known proxy of Iran, and thereby undermine United States national security and foreign policy interests." It doesn't say that South Africa should no longer be eligible for AGOA, but directs the administration to do a review of the bilateral relationship, and uncover whether the country is undermining U.S. foreign policy interests or national security.
The bill was publicized on Oct. 8 by the office of Kennedy, R-La. "China is using Africa to expand its influence at America’s expense. We need to rethink our relationships in the region while strengthening trade with African countries that share our values. This bill makes sure AGOA works for America’s interests -- not against them," he said in the press release.
The administration has said it supports a one-year extension of AGOA. The first Trump administration began negotiations for a traditional free trade agreement with Kenya, but now all African goods are subject to at least 10% tariffs.