AAFA has shared its "deep disappointment" on the US administration allowing both the AGOA and Haiti trade preference programmes to expire this week and is calling on the US government to extend them to provide US businesses with smart, practical strategies to diversify sourcing outside of China.
AAFA points out that Congress also faces a government shutdown, which means renewal could face unnecessary delays.
AAFA explains that for more than 23 years, AGOA has provided eligible Sub-Saharan African countries with duty-free access, strengthening US exports in textiles and agriculture and fostering diverse U.S.–Africa commercial partnerships.
Similarly, it says that for over 15 years, the Haiti HOPE/HELP programmes have supported both US and Haitian textile industries by granting Haiti duty-free access for apparel and textile products, building strong business ties between the two neighbouring nations.
AAFA points out the programmes enjoy strong bipartisan backing and support American cotton and textile exports.
AAFA's vice president of trade and customs Beth Hughes states: “We are frustrated by the failure to act on these long-standing, bipartisan trade preference programmes that clearly benefit local garment industries abroad as well as Made-in-America cotton and textile exporters, American brands, and the 3.6m American workers directly supported by the fashion industry."
She adds: "Despite persistent and constructive engagement from a wide range of stakeholders, Congress has fallen short in renewing these mutually beneficial programmes, ultimately surrendering further strength to China’s manufacturing influence by placing unnecessary obstacles in the way of viable sourcing alternatives."
Impact of US allowing AGOA to lapse for Africa's fashion sector
The United Nations Conference on Trade and Development (UNCTAD) points out that unless AGOA is renewed, fashion manufacturers and those working in agriculture could face shrinking market access to the US, undermining prospects for diversification.
It states: "The recent expiry of the scheme would threaten export diversification and industrialisation across the continent.
"In a country like Lesotho, for instance, approximately one third of exports are tied to AGOA, predominantly in the apparel sector, which employs between 30,000 and 40,000 workers, primarily women."
Plus, it explains that African and non-African exporters are already facing increased trade barriers in the US market with the launch of Trump's reciprocal tariffs increasing for the average AGOA country from below 0.5% to 10%.
For key exports, such as agriculture and food products, metals, machinery and transportation, textiles and apparel, they have already triggered a double-digit increase in duties.
UNCTAD believes the expiry of AGOA will disproportionately affect Africa’s light-manufacturing exports to the US, namely apparel and agro-food products, such as fish and dried fruits.
Without AGOA’s preferential treatment, the 32 countries that received preferences until September 2025 will face a second wave of tariff increases as country-specific and sectoral tariffs will be added on top of most-favoured nation (MFN) rates, instead of the current preferential treatment under AGOA.
Due to varying tariff rates and exceptions for sensitive raw materials, African exports of agricultural goods and manufactured products would be subject to tariffs that are two to three times higher than those applied on fuels and minerals.