UNCTAD warns of heavy tariff burden to Africa if AGOA expires

If AGOA lapses, tariffs on African exports to the US will surge, particularly in textiles and apparel. Lesotho’s tariffs would soar from zero to 32 per cent, Kenya’s from 10 to 28 per cent, and Madagascar’s from 12 to 23 per cent. Even countries without special apparel preferences, such as South Africa and Guinea-Bissau, would face higher duties, averaging 14–15 per cent, UNCTAD said in a press release.

In 2023, US imports under AGOA totalled nearly $10 billion. While modest compared to overall US imports, these flows represent a substantial share of exports for countries such as Lesotho and Madagascar. The scheme has enabled African exporters to gain competitiveness, especially in apparel, and has encouraged US firms to source fuels, metals, and textiles at lower costs. Additionally, AGOA has spurred foreign direct investment and strengthened supply chain resilience across Africa.

In 2023, US imports under AGOA totalled nearly $10 billion. While modest compared to overall US imports, these flows represent a substantial share of exports for countries such as Lesotho and Madagascar. The scheme has enabled African exporters to gain competitiveness, especially in apparel, and has encouraged US firms to source fuels, metals, and textiles at lower costs. Additionally, AGOA has spurred foreign direct investment and strengthened supply chain resilience across Africa.

Since April 2025, US tariffs have already risen under new country-specific and sectoral measures. If AGOA expires, African exporters will face compounded pressure as they lose preferential access and revert to most-favoured-nation rates. This shift could severely disrupt long-standing trade ties, reduce competitiveness, and threaten industries heavily reliant on the US market.

The expiration of AGOA would come at a delicate time, with global competition for export markets intensifying. While the African Continental Free Trade Area offers a potential buffer, building alternative markets and supply chains will require significant time and adjustment. Without renewal, Africa’s export competitiveness in the US market could rapidly erode, placing fragile economies at greater risk, added the release.

ALCHEMPro News Desk (SG)