The US Senate’s vote to extend the African Growth and Opportunity Act (AGOA) until the end of 2028 could boost export opportunities to the US market for African countries, including Mauritius. Now, the key next step is for the House of Representatives to approve the extension.
The extension maintains key provisions such as the Third-Country Fabric rule, which is critical to the competitiveness of Mauritius’ textile industry. However, stakeholders emphasise the need to prepare for the post-AGOA period through possible bilateral free trade agreements with the US to secure more stable and reciprocal trade relations.
Paul Baker, Chairman of International Economics Consulting Group and the Africa Trade Foundation, agrees that the bill has a good chance of passing in the House if no major changes are introduced. However, he remains sceptical about the current US administration’s approach to AGOA. He also notes that while a free trade agreement with the US would be ambitious, Mauritius should consider it strategically to attract investment and secure access to the US market.
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