Репост из: South Africa Reports
🇿🇦🇺🇸Agoa, agoing, agoner? Risks of US trade policy for Africa
AGOA expires in 2025, and Washington’s political climate suggests a ‘business-as-usual’ approach is unlikely to suffice.
The future of the African Growth and Opportunity Act (AGOA) is increasingly uncertain as United States (US) industrial policy becomes more nationalistic and securitised, particularly in response to shifting geopolitical, trade and domestic priorities.
Established in 2000, AGOA offers duty-free access to the US market for certain products from eligible sub-Saharan African countries, to encourage economic growth and foster US-Africa relations. However, current and future US policy trends could affect AGOA’s trajectory, potentially damaging African economies.
Several concerns are generating anxiety among African policymakers.
The first is the ongoing shift in US industrial and trade policy. Under both the Trump and Biden administrations, economic nationalism has dominated. US trade has increasingly focused on reshoring supply chains, reducing reliance on foreign production and securing critical industries, particularly in response to competition with China. This could reduce the focus on initiatives like AGOA, especially if they don’t align with US goals of boosting domestic production and securing supply chains.
Moreover, US trade policy is increasingly viewed through a security prism, meaning Africa’s positioning is under greater scrutiny. Should African countries be perceived as drifting into the orbit of China, Russia or other non-Western powers, that could lead to a reassessment of trade incentives under AGOA. South Africa’s ‘Lady R’ debacle offers a clear example. AGOA’s future may be linked to how African countries align with US geopolitical interests.
https://issafrica.org/iss-today/agoa-agoing-agoner-risks-of-us-trade-policy-for-africa
AGOA expires in 2025, and Washington’s political climate suggests a ‘business-as-usual’ approach is unlikely to suffice.
The future of the African Growth and Opportunity Act (AGOA) is increasingly uncertain as United States (US) industrial policy becomes more nationalistic and securitised, particularly in response to shifting geopolitical, trade and domestic priorities.
Established in 2000, AGOA offers duty-free access to the US market for certain products from eligible sub-Saharan African countries, to encourage economic growth and foster US-Africa relations. However, current and future US policy trends could affect AGOA’s trajectory, potentially damaging African economies.
Several concerns are generating anxiety among African policymakers.
The first is the ongoing shift in US industrial and trade policy. Under both the Trump and Biden administrations, economic nationalism has dominated. US trade has increasingly focused on reshoring supply chains, reducing reliance on foreign production and securing critical industries, particularly in response to competition with China. This could reduce the focus on initiatives like AGOA, especially if they don’t align with US goals of boosting domestic production and securing supply chains.
Moreover, US trade policy is increasingly viewed through a security prism, meaning Africa’s positioning is under greater scrutiny. Should African countries be perceived as drifting into the orbit of China, Russia or other non-Western powers, that could lead to a reassessment of trade incentives under AGOA. South Africa’s ‘Lady R’ debacle offers a clear example. AGOA’s future may be linked to how African countries align with US geopolitical interests.
https://issafrica.org/iss-today/agoa-agoing-agoner-risks-of-us-trade-policy-for-africa