The U.S. House of Representatives has officially endorsed the extension of two crucial trade programs: the African Growth and Opportunity Act (AGOA) and the HOPE and HELP initiatives for Haiti, granting each a three-year renewal.
Initially enacted in 2000, AGOA was set to expire on September 30, 2025. This act allows qualifying sub-Saharan African countries to enjoy duty-free access to the U.S. market for over 1,800 products, along with an additional 5,000 goods covered by the Generalized System of Preferences.
AGOA imposes strict criteria for eligibility, focusing on governance, anti-corruption efforts, human rights, and market access. As of 2024, a total of 32 nations meet the standards to benefit from AGOA.
Congress last revised and extended the act in 2015, establishing the previous expiration date of 2025. The renewal of AGOA and HOPE/HELP programs is crucial in light of U.S. efforts to counter the expanding economic influence of China and Russia in Africa.
China is estimated to have invested between $8 billion and $10 billion in Africa, seeking access to vital mineral resources that account for about 30% of the global supply.
The renewal of AGOA aligns with recent U.S. diplomatic endeavors in Africa. This includes efforts to promote stability between Rwanda and the Democratic Republic of the Congo, along with announcing a strategic partnership agreement with the DRC concerning mineral development.
The HOPE/HELP program facilitates trade incentives specifically for textile and apparel products from Haiti. Advocates argue that maintaining this access is essential for stabilizing Haiti’s apparel sector in light of ongoing political challenges and security concerns in a nation less than 700 miles from the United States.
The renewal of AGOA and HOPE/HELP programs aligns with American trade objectives focused on nearshoring and onshoring practices. Both programs faced expiration, raising concerns among U.S. industries dependent on reliable international sourcing.
The House vote allows for a retroactive three-year extension for both programs pending enactment into law.
Beth Hughes, vice president of trade and customs policy at the AAFA, remarked: “Yesterday’s vote reflects bipartisan recognition that protecting the African and Haitian apparel and footwear industries strengthens the U.S. apparel and footwear industry, and its 3.6 million American workers, by opening markets for U.S. cotton and textile exports and advancing diversified sourcing goals. These programs promote stable, transparent supply chains while expanding economic opportunity. We urge swift action as the bill now moves to the Senate.”
