When the African Growth and Opportunity Act (AGOA) expired in September of last year, promo companies who manufactured products in Africa had to rethink how they were doing business. Now, the Trump administration is reinstating the trade deal, which has provided nonreciprocal, duty-free access to U.S. goods produced in designated sub-Saharan African countries since 2000.

The reauthorization of AGOA, which President Trump signed earlier this month, will once again provide eligible sub-Saharan African countries with duty-free access to the U.S. market for over 1,800 products, including textiles and manufactured goods. It also supplements the additional 5,000 products covered under the Generalized System of Preferences program.

“AGOA for the 21st century must demand more from our trading partners and yield more market access for U.S. businesses, farmers and ranchers to build upon the benefits it has historically provided to Africa and the United States,” U.S. Trade Representative Ambassador Jamieson Greer said in an official statement. “We must also make sure that the program enhances U.S.-Africa trade and will work with Congress over the next year to modernize the program to align with President Trump’s America First Trade Policy.”

In the short term, the AGOA extension could offer promo companies continued access to textiles and other goods available from eligible sub-Saharan African nations. However, the extension will only last until December 31, 2026, making it nine years shorter than the last extension and leaving promo companies with little clarity on what comes next.

Strengthened Trade Relations Between the U.S. & Africa

The trade deal has largely been mutually beneficial for American suppliers and African workers alike, providing duty-free access to valuable foreign goods and apparel while enhancing economic opportunities for 32 eligible sub-Saharan countries, many of which are considered developing nations. A report from the Center for Strategic and International Studies estimated that close to 300,000 jobs and up to 1 million indirect jobs would disappear once the deal hit its expiration date.

300,000
jobs and 1 million indirect jobs could disappear once AGOA reaches its expiration date. Center for Strategic and International Studies

Behind the scenes, politicians and trade leaders from both the U.S. and several sub-Saharan African countries have been pushing for an extension, though many hoped it would be a longer one. In 2024, Senators Chris Coons (D-Delaware) and James Risch (R-Idaho) introduced a bipartisan bill to extend the program through 2041. It didn’t pass, even though it had the backing of then-U.S. President Joe Biden.

Promo businesses and industry leaders have also advocated for AGOA’s extension.

Counselor Top 40 supplier SanMar (asi/84863), the promo industry’s top supplier, opened a factory in Tanzania in 2009 and has touted the factory’s influence on economic growth, crediting AGOA for making it happen. Melissa Nelson, general counsel for SanMar, testified before the Senate Finance Committee in June 2024 in support of the legislation that would extend AGOA through 2041.

But there’s a big difference between the 16-year extension Coons and Risch proposed and the one-year extension they got.

Short-Term Relief Without Long-Term Clarity

While the extension offers temporary relief from added duties on promo items, its short-term nature comes without the clarity many companies have been waiting for. Indeed, it may not make financial sense for many businesses to invest in the region when the benefits they receive through doing so expire within a year.

Meanwhile, the U.S. Supreme Court still hasn’t released its decision on the legality of President Trump’s reciprocal tariffs, a case which it initially heard in November. A 30% tariff on goods and materials from South Africa, one of AGOA’s largest beneficiaries, took effect six months ago. The U.S. is one of South Africa’s largest trading partners – second only to China – but looming tariff uncertainty has the sub-Saharan African nation considering investing in other trade partnerships. According to President Cyril Ramaphosa, South Africa will continue to engage the U.S. to preserve market access, but will focus on further diversifying its export markets with an eye toward “deepening intra-African trade” in particular.

Parks Tau, Minister of Trade and Industry for South Africa, is cautiously optimistic about the continuation of AGOA, and told South African news outlets that he hopes the U.S. will provide additional details.

“This extension will provide some relief to South African products exported under the scheme,” Tau said. “We are, however, concerned by the short nature of the extension, and we hope the United States will use this opportunity provided by the short extension towards a program that will provide certainty around investment and purchasing.”