The American Apparel & Footwear Association (AAFA) has called on U.S. lawmakers and trade officials to enact a long-duration renewal of the African Growth and Opportunity Act (AGOA) well ahead of its September 30, 2026 expiration deadline, warning that uncertainty is already chilling investment pipelines across sub-Saharan Africa.
In testimony before the Office of the U.S. Trade Representative (USTR) during the annual AGOA review hearing (Docket USTR-2025-0012), Beth Hughes, AAFA Vice President of Trade & Customs Policy, said AGOA remains a “pivotal” driver of two-way economic benefit—spurring U.S. private-sector investment, industrial job creation in Africa, and related employment across the United States.
“The time to act is now,” Hughes told trade officials. “AGOA has helped build a strong foundation for economic partnership, industrial growth, and mutual prosperity between the U.S. and Africa. Let’s not allow that progress to stall.”
Real-World Investments at Stake
Hughes detailed multiple AAFA member case studies that hinge on AGOA’s duty-free access:
- Togo: A newly opened garment factory has hired 250 workers trained over eight months; headcount is expected to reach 500. Finished product flows to a U.S. distribution center supporting 100+ U.S. jobs.
- Madagascar (planned): A U.S. brand is ready to shift up to 50% of production from China, Vietnam, and Indonesia—but only if AGOA duty-free benefits remain in force.
- Ghana: One U.S.-linked manufacturer—now Ghana’s largest private employer—has 6,000 workers and plans to double its workforce by year-end, growth made viable by AGOA cost competitiveness.
- Madagascar & Tanzania (long-term shift): An AAFA member founded in 1987 has fully moved production out of China and now employs 10,000+ workers (mostly women), shipping 50 million garments annually to 60,000 U.S. small businesses—supporting an estimated 3 million U.S. jobs in downstream retail and service activity.
Third-Country Fabric Rule Is Essential
Hughes stressed that the third-country fabric provision remains critical while African textile capacity scales up. Today, African mills supply only about 10% of the yarn and fabric needed by AGOA apparel producers. Continued flexibility to source textiles globally keeps African cut-and-sew operations viable as upstream investment develops.
Policy Improvements Backed by AAFA
To increase utilisation and predictability, AAFA is urging U.S. policymakers to adopt the following enhancements as part of renewal:
- Extend eligibility reviews from annual to triennial cycles to reduce administrative uncertainty.
- Permit cumulation across African Union countries that have ratified AfCFTA, encouraging regional supply chains.
- Replace legacy textile visa paperwork with modern, data-driven customs cooperation tools.
- Update apparel quota thresholds to reflect current sourcing patterns.
- Revisit graduation criteria so developing suppliers aren’t prematurely pushed out of preference eligibility.
Countdown to Renewal
With companies already making multi-year sourcing decisions, Hughes said an early, multi-year extension—passed before the September 30 deadline—will lock in momentum, attract new manufacturing investment, and accelerate job creation on both continents.
