By Dr. Yonas Workineh
The U.S. Congress has cleared legislation that would extend the African Growth and Opportunity Act (AGOA) for another two years through December 31, 2028, but the extension has not yet taken effect. The measure still requires President Donald Trump’s signature.
The U.S. House of Representatives passed the measure on September 1 by a bipartisan vote of 370–48, following Senate approval in August. The AGOA extension was included in a short-term government funding package that has now passed both chambers of Congress.
If signed by President Trump, the legislation would extend AGOA through the end of 2028 without making major changes to the program.
The latest congressional action follows the expiration of AGOA on September 30, 2025. Congress subsequently restored the program retroactively in February 2026 for a limited period.
Established in 2000, AGOA provides eligible sub-Saharan African countries with preferential access to the U.S. market, including duty-free treatment for more than 1,800 products.
U.S. lawmakers and business groups have welcomed the proposed extension while emphasizing the need for a longer-term renewal and modernization of the program.
Joshua Walker, Chief International Affairs Officer at the U.S. Chamber of Commerce, described the two-year extension as an important initial step toward giving American businesses operating in sub-Saharan Africa greater certainty for investment decisions.
He urged Congress to use the additional period to modernize the trade programs and work toward a durable, long-term reauthorization.
Walker also argued that a more permanent renewal would help encourage cross-border investment and strengthen the United States’ position as a key economic partner in Africa.
He said AGOA and related trade preference programs also have a strategic role as the United States seeks to diversify supply chains and expand its economic engagement in regions where other state-backed actors are increasing their commercial and diplomatic influence.
Ethiopia’s eligibility remains unresolved
For Ethiopia, however, the proposed extension would not automatically restore access to AGOA.
Ethiopia remains suspended from the program and would require a separate decision by the U.S. administration to regain beneficiary status. The legislation cleared by Congress does not reinstate Ethiopia’s eligibility.
Ethiopia was removed from AGOA in December 2021 by the administration of President Joe Biden, which cited what it described as “gross violations of internationally recognized human rights” during the conflict in the Tigray region.
Before Ethiopia’s removal, Republican lawmakers Jim Risch, then Ranking Member of the Senate Foreign Relations Committee, and Michael McCaul, then Ranking Member of the House Foreign Affairs Committee, had urged the Ethiopian government to take steps to avoid losing AGOA benefits.
The lawmakers emphasized the economic importance of the program to Ethiopia, noting that AGOA had contributed to job creation and that the U.S.-Ethiopia trade relationship had generated economic benefits for both countries since the program was established.
At the same time, they pointed to credible reports of serious human rights violations during the Tigray conflict and warned that Ethiopia needed to address those concerns to preserve its eligibility.
The eventual suspension dealt a significant blow to Ethiopia’s export-oriented manufacturing sector, particularly textile and garment factories in industrial parks that had attracted investment partly because of preferential access to the U.S. market. Several foreign companies later reduced or ended their operations in the country.
The Ethiopian government criticized the U.S. decision as misguided and warned that the loss of AGOA preferences could affect the livelihoods of more than 200,000 low-income families, many of them women employed in industries linked to exports.
Although the Tigray conflict formally ended with the November 2022 Cessation of Hostilities Agreement, Ethiopia’s human rights situation has continued to face international scrutiny amid armed conflicts and political instability in different parts of the country.
Recent U.S. human rights assessments have documented allegations including extrajudicial killings, torture and mass detention involving both state and non-state actors.
AGOA eligibility remains subject to periodic review, with the U.S. President having the authority to determine whether a country qualifies for the program.
This means that even if President Trump signs the congressional legislation extending AGOA through 2028, Ethiopia would remain outside the program unless the U.S. administration separately decides to restore its eligibility.
The proposed extension would therefore provide continued trade certainty for countries that currently qualify for AGOA, while Ethiopia’s return to the preferential trade program remains dependent on a future U.S. eligibility decision.
