NAIROBI, Sept 17 (Reuters) - African manufacturers are
lobbying U.S. Congress to grant a last-ditch extension of one or
two years to a duty-free trade programme due to expire at the
end of September, a Kenyan factory owner involved in the
campaign told Reuters.
U.S. President Donald Trump's aggressive tariff policies
have cast doubt on the prospects for renewal of the African
Growth and Opportunities Act (AGOA) trade initiative, which was
passed in 2000 under former President Bill Clinton to provide
duty-free access to the U.S. market for thousands of products.
Delegations from Kenya and four other AGOA beneficiaries
visited Washington last week to push for the temporary
extension, said Pankaj Bedi, chairman of apparel company United
Aryan, which supplies U.S. retailers such as Target ( TGT ) and
Walmart ( WMT ).
The act is designed to support economic development of
African nations and supports hundreds of thousands of jobs in
the textiles, automotive and mining sectors while U.S. lawmakers
have viewed it as a tool to counter Chinese influence on the
continent.
Despite bipartisan support, an attempt last year to renew
AGOA for 16 years did not make it to a vote in Congress. Since
then, President Trump's trade policies have suggested there may
not be the political will in Washington to push through an
extension.
Bedi, who is also a Kenya Association of Manufacturers board
member, said the delegation of private investors and government
officials had more than 30 engagements last week, including with
members of Congress and their aides.
He said there was universal support from the Congressional
Republicans and Democrats they met, including staffers for House
Speaker Mike Johnson, to renew AGOA.
But he said it remained unclear whether Congress could find
a piece of legislation in the next two weeks to which a renewal
could be attached.
Without an extension, manufacturers would face steep rises
in tariffs on their products, including a jump from 10% to 43%
for synthetic textiles.
"It's like a house of cards that will collapse," Bedi said,
predicting mass layoffs across the textiles sector if AGOA is
not renewed.
The White House and the offices of the United States Trade
Representative and Speaker Johnson did not respond immediately
to requests for comment. The White House has not said publicly
whether it supports an extension.
Bedi said that if AGOA ends, the U.S. would become even more
heavily dependent on Asian manufacturers.
"If this is taken away, by default, the business is going to
go back to China," he said.