What happens if Trump trashes the AGOA pact?
The African Growth and Opportunity Act (AGOA), a trade agreement at the core of US economic policy on Africa, is soon set to expire.
The US Congress enacted the AGOA Trade Act in May 2000. The pact has been renewed several times, most recently in 2015, when Congress extended it to September 2025.
Since its implementation, AGOA has provided eligible sub-Saharan African countries with duty-free access to the US market for over 1,800 products.
However, trade decisions by the Trump administration, including the imposition of a universal 10% tariff on all countries, threaten the future of AGOA.
Tsonam Akpeloo, President of the Association of Ghana Industries, told DW that Trump's move could result in people losing their jobs.
"One of our member companies producing fabrics and supplying them to the US market is employing over 5,000 people here in Ghana because of the AGOA, which has a ready market in the US," Akpeloo said.
"If AGOA is no longer in place, that company will have to pay more taxes and it would mean that the people employed will be affected," he added.
Trump has imposed steep tariffs on some member countries under AGOA, including Lesotho, with a 50% tariff slapped on the mountainous nation.
Although........
© Deutsche Welle
