Washington, DC — As we convene for the 10th Annual AGOA CSO Network Spring Conference, we find ourselves at a pivotal moment in U.S.-Africa trade relations. The theme, “Strengthening U.S.-Africa Trade and Economic Cooperation Under the Trump Administration,” underscores the urgency and significance of our discussions.
Recent policy changes under President Trump’s administration, including the Executive Order on America First Trade Policy, the IEEPA on reciprocal trade, and the 90-day Pause order on reciprocal tariffs, have profound implications for the African Growth and Opportunity Act (AGOA) and our broader trade relations. These policies aim to address trade imbalances and enhance national security, but they also present unique challenges and opportunities for AGOA benefits.
The Executive Order on America First Trade Policy prioritizes American interests in trade agreements, potentially leading to a reassessment of existing trade benefits under AGOA. This reassessment may affect the preferential access that African countries currently enjoy in the U.S. market, altering the dynamics of U.S.-Africa trade.
The IEEPA on reciprocal trade seeks to ensure mutually beneficial trade relationships. While this policy aims to create fairer trade conditions, it may introduce new requirements for African countries to maintain their AGOA benefits, impacting the ease with which African products enter the U.S. market.
The 90-day Pause order on reciprocal tariffs provides a window of opportunity for renegotiating trade terms. For African countries, this pause is a critical period to engage in dialogue with U.S. policymakers to secure favorable terms and preserve AGOA benefits.
To adapt to these changes, African countries can focus on several key strategies:
Diversification of Exports: By diversifying their export portfolios, African countries can reduce dependency on specific products and markets, making them more resilient to policy shifts. Enhancing Trade Infrastructure: Investing in infrastructure improvements can facilitate smoother trade operations and compliance with new trade requirements. Strengthening Bilateral Relations: Engaging in proactive diplomacy and negotiations with U.S. policymakers can help secure favorable trade terms and preserve AGOA benefits. Addressing Non-Tariff Barriers: As highlighted in USTR Ambassador Greer’s National Trade Estimate, addressing non-tariff barriers such as regulatory standards, intellectual property rights, and customs procedures can enhance trade efficiency and compliance.
The outcome of this conference will include presenting recommendations to the 119th Congress, the Trump administration, and African governments and stakeholders for support and implementation during the 90-day pause on reciprocal tariffs. These recommendations will aim to promote investment opportunities, enhance trade infrastructure, strengthen bilateral relations, and address non-tariff barriers.
Bipartisan collaboration has been the cornerstone of AGOA since its inception in 2000, and it remains vital as we navigate the complexities of today’s trade environment. By working together across party lines, we can uphold the principles of fairness and mutual benefit that underpin U.S.-Africa trade relations.
As we embark on tomorrow’s discussions, let us remember the purpose of this conference: to strengthen the bonds between the United States and Africa, explore new avenues for cooperation, and build a future of shared prosperity. Our collective efforts can pave the way for a more inclusive and sustainable economic landscape.
Fred Oladeinde is Chairman of The AGOA Civil Society Organization Network
