CalChamber Supports Modernization of African Trade Preference Program

The California Chamber of Commerce is supporting a process recently begun by the U.S. Trade Representative (USTR) to modernize a trade preference program for certain African nations.

Modernization of the African Growth and Opportunity Act (AGOA) is a strategic effort to strengthen U.S. trade competitiveness in sub-Saharan Africa, improve reciprocal trade relationships, and address long-standing structural limitations in the current program.

For U.S. exporters, particularly small and medium-sized enterprises (SMEs), the modernization effort represents an opportunity to shape future market access conditions and reduce trade barriers in a growing region.

In comments submitted to the USTR on May 15, CalChamber expressed its longtime support for AGOA and the recent reauthorization of the trade preference program through the end of the year.

The AGOA provides duty-free entry into the United States for almost all African products. Congress last renewed the program for 10 years in 2015. The current short extension of the trade law was retroactive to September 30, 2025, the day it expired after the last renewal.

Model for Trade, Investment

CalChamber is pleased the administration is now engaged in modernizing the act. The trade preference program has been the model behind U.S.-African trade and investment since it was enacted in 2000.

The program provides duty-free access to the U.S. market for eligible sub-Saharan African countries. But the USTR has identified challenges related to limited trade diversification, declining U.S. market share, and persistent barriers to U.S. exports in countries benefiting from the program.

CalChamber is supportive of this modernization and simplification effort, which signals a shift toward more reciprocal and performance-based trade engagement with sub-Saharan Africa. For SMEs, the potential reforms could lead to improved market access, reduced trade barriers, and expanded opportunities in emerging sectors such as infrastructure and critical minerals.

At the same time, increased enforcement of eligibility criteria may create a more predictable and transparent trade environment.

AGOA Benefits

The CalChamber urges long-term renewal of the AGOA, which affects 32 of the approximately 45 sub-Saharan nations (there are 54 nations on the entire continent). The AGOA has helped to expand and diversify African exports to the United States.

The AGOA can continue to be the cornerstone of economic relations between the United States and sub-Saharan African nations. Since 2000, the program has fostered increased trade and investment within Africa while raising standards by promoting fair treatment for U.S. companies and farmers, human rights, anti-corruption efforts, and democracy.

U.S. businesses have invested $8 billion annually under AGOA while African trading nations are opening their markets for U.S. agricultural products.

Africa is home to approximately 30% of the world’s critical mineral resources. China has invested $8 billion to $10 billion in Africa to try to monopolize supply chains for these resources. AGOA is one of the United States’ most valuable tools for securing long-term economic and national security.

The AGOA embodies a trade and investment-centered approach to development. Enactment of the AGOA has stimulated the growth of the African private sector and provided incentives for further reform.

By providing commercial incentives to encourage bilateral trade, the AGOA aims at transforming the relationship between the United States and sub-Saharan Africa away from aid dependence to enhanced commerce.

CalChamber Position

The CalChamber believes that it is in the mutual economic interest of the United States and sub-Saharan Africa to promote stable and sustainable economic growth and development in sub-Saharan Africa and that this growth depends in large measure upon the development of a receptive environment for trade and investment.

The CalChamber is supportive of the United States seeking to facilitate market-led economic growth in, and thereby the social and economic development of, the countries of sub-Saharan Africa.

In particular, the CalChamber is supportive of the United States seeking to assist sub-Saharan African countries and the private sector in those countries to achieve economic self-reliance.

Sub-Saharan Africa will have 25% of the world’s population by 2050. Economic self-reliance is critical for this growing population. By providing new market opportunities, AGOA can continue to help bolster economic growth, promote economic and political reform, and improve U.S. economic relations in the region.