How the End of a Key US Trade Deal Threatens Thousands of African Jobs and What It Means for Global Workers

The Impact of AGOA's Expiration on African Workers

Workers and industries across Africa are preparing for the termination of a long-standing U.S. trade agreement that has provided preferential treatment to African exporters. This change exposes businesses to new competitive pressures and tariffs, putting thousands of jobs at risk.

What is AGOA?

The African Growth and Opportunity Act (AGOA) is a multilateral trade agreement that has allowed thousands of products from eligible African nations duty-free access to U.S. markets since 2000. Its scheduled termination on Tuesday comes amid uncertainty over renegotiations and the impact of new tariffs announced by the White House in April.

Kenya's Textile and Apparel Sector: A Case Study

In Kenya, AGOA has enabled the country's textile and apparel sector—including manufacturers of jeans—to compete effectively with exporters in Asia, such as those in Bangladesh and Vietnam. Pankaj Bedi, owner of United Aryan, an apparel manufacturer in Nairobi that exports Levi's and Wrangler jeans to the U.S., stated, "If AGOA goes away we have zero chance to compete with the Asian countries."

Textile and apparel exports from Kenya to the U.S. have surged from approximately $50 million when AGOA was introduced to around $500 million today.

Political and Economic Responses

Kenyan President William Ruto emphasized the importance of AGOA at the UN General Assembly in New York, saying, "I will be asking (Trump) for the U.S. to consider seriously renewing and extending AGOA for at least a minimum of five years. It is a platform that connects Africa and the U.S. in a very fundamental way."

African leaders are pushing for last-minute renegotiations and scrambling to sign new bilateral agreements with the U.S. However, Raphael Obonyo, a public policy expert at UN Habitat, warned, "African countries including Kenya must be alive to the possibility that AGOA won’t be extended, AGOA won’t be remodified, and … America won’t be interested in having a trade pact."

Broader Economic and Employment Impacts

AGOA has benefited various African economies, from major exporters like Nigeria and Angola (oil), South Africa (autos), and Kenya (clothing) to smaller economies such as Lesotho and Eswatini. Researchers at the German Institute of Development and Sustainability noted that some African economies could face "notable adverse effects" from the end of AGOA and new U.S. tariffs.

Industries dependent on AGOA employ an estimated 1.3 million people, whose jobs are now in jeopardy. In Kenya alone, over 66,000 people, many of them women, work in vulnerable textile and apparel exporters to the U.S. United Aryan has already announced plans to cut about 1,000 jobs, or 10% of its workforce, due to trade uncertainty.

Personal Stories Highlight the Human Cost

For workers like Julia Shigadi, a machinist at United Aryan, the end of AGOA poses an existential threat. She shared, "This has been my bread and butter. I only depend on this job—so if it is gone, it means my life is gone too."

Note: This coverage is supported by the Gates Foundation for global health and development in Africa, with the AP solely responsible for all content.