Towards a Three-Year Extension: The AGOA Bill Progresses in the United States, Mauritius Responds Cautiously

The U.S. Congress is considering a three-year extension of the AGOA. Mauritius welcomes this development with caution, emphasizing the significant stakes for the textile industry and local employment.

An important milestone was reached this week in Washington regarding the future of the African Growth and Opportunity Act (AGOA). On December 10, a House committee approved a bill aimed at renewing this preferential trade program for three years for sub-Saharan African countries. The text, presented on December 8 by the Ways and Means Committee, proposes to extend AGOA until December 31, 2028. Currently, there is no explicit reference to a potential exclusion of South Africa, contrary to what the U.S. trade envoy had suggested.

Enacted in 2000, AGOA grants duty-free access to the U.S. market for a range of products from eligible African countries. Despite its strategic importance, the program expired in September, leaving sectors where hundreds of thousands of African jobs depend on it in limbo. The progress made in the U.S. Congress thus serves as one of the first concrete signals of a potential legislative outcome.

In Mauritius, the authorities' response was prompt. The Minister of Industry, SMEs, and Cooperatives, Aadil Ameer Meea, highlights that this development is information that has been awaited for several weeks. "We take note of this with interest," he states, while reminding that it is still just a proposal. According to him, this initiative shows that "the economic partnership between the United States and Africa remains a strategic priority for many American decision-makers."

The minister believes that an extension would provide better visibility for Mauritian exporters, especially those in the textile and clothing sectors, which are heavily linked to the preferential regime established by AGOA. A renewal would allow companies to consolidate their markets, continue investing in modernizing their capacities, and maintain several thousand local jobs.

However, Aadil Ameer Meea insists on the need to remain vigilant. No final vote has been adopted, and the Mauritian government is simultaneously pursuing its diplomatic efforts to preserve a stable trade framework, whether or not an agreement is renewed. "We will continue to monitor the situation closely and support our operators," he assures.

In the United States, AGOA is also seen as beneficial. The program represents nearly one billion dollars in savings for American consumers and contributes to the competitiveness of local businesses. It supports around 300,000 jobs, generating nearly 1.8 billion dollars in annual wages.