Market access to the United States could further deteriorate for many African countries if the African Growth and Opportunity Act (AGOA) is not renewed, according to the UN trade and development (UNCTAD). It is set to expire today, i.e, September 30, 2025. The scheme, introduced in May 2000, grants duty-free access to over 1,800 products from sub-Saharan African economies, making it a critical driver of export competitiveness.

If AGOA lapses, tariffs on African exports to the US will surge, particularly in textiles and apparel. Lesotho’s tariffs would soar from zero to 32 per cent, Kenya’s from 10 to 28 per cent, and Madagascar’s from 12 to 23 per cent. Even countries without special apparel preferences, such as South Africa and Guinea-Bissau, would face higher duties, averaging 14–15 per cent, UNCTAD said in a press release.

In 2023, US imports under AGOA totalled nearly $10 billion. While modest compared to overall US imports, these flows represent a substantial share of exports for countries such as Lesotho and Madagascar. The scheme has enabled African exporters to gain competitiveness, especially in apparel, and has encouraged US firms to source fuels, metals, and textiles at lower costs. Additionally, AGOA has spurred foreign direct investment and strengthened supply chain resilience across Africa.

UNCTAD has warned that many African markets’ access to the US could worsen if the African Growth and Opportunity Act (AGOA) expires on September 30, 2025.
Without it, tariffs would surge, particularly in textiles and apparel, threatening export competitiveness, disrupting trade ties, and undermining investment and supply chain resilience across many sub-Saharan African economies.

In 2023, US imports under AGOA totalled nearly $10 billion. While modest compared to overall US imports, these flows represent a substantial share of exports for countries such as Lesotho and Madagascar. The scheme has enabled African exporters to gain competitiveness, especially in apparel, and has encouraged US firms to source fuels, metals, and textiles at lower costs. Additionally, AGOA has spurred foreign direct investment and strengthened supply chain resilience across Africa.

UNCTAD has warned that many African markets’ access to the US could worsen if the African Growth and Opportunity Act (AGOA) expires on September 30, 2025.
Without it, tariffs would surge, particularly in textiles and apparel, threatening export competitiveness, disrupting trade ties, and undermining investment and supply chain resilience across many sub-Saharan African economies.

Since April 2025, US tariffs have already risen under new country-specific and sectoral measures. If AGOA expires, African exporters will face compounded pressure as they lose preferential access and revert to most-favoured-nation rates. This shift could severely disrupt long-standing trade ties, reduce competitiveness, and threaten industries heavily reliant on the US market.

The expiration of AGOA would come at a delicate time, with global competition for export markets intensifying. While the African Continental Free Trade Area offers a potential buffer, building alternative markets and supply chains will require significant time and adjustment. Without renewal, Africa’s export competitiveness in the US market could rapidly erode, placing fragile economies at greater risk, added the release.

Fibre2Fashion News Desk (SG)

India has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme for another six months beyond September 30, 2025. The Directorate General of Foreign Trade (DGFT) has extended the export-oriented scheme at a crucial time when Indian exporters are facing 50 per cent reciprocal tariffs imposed by the United States. The scheme is expected to provide much-needed support to exporters at this critical juncture.

“In exercise of the powers conferred under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, as amended, read with Para 1.02 of the Foreign Trade Policy (FTP) 2023, the Central Government hereby notifies the extension of the RoDTEP Scheme beyond September 30, 2025. Accordingly, the RoDTEP Scheme shall remain in force and be applicable to exports made from Domestic Tariff Area (DTA) units, Advance Authorisation (AA) holders, Special Economic Zone (SEZ) units, and Export Oriented Units (EOUs) up to March 31, 2026,” the DGFT said in a notification issued today.

India has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme by six months beyond September 30, 2025, to March 31, 2026, amid 50 per cent US tariffs.
The extension, notified by DGFT, will support exporters across DTA, AA, SEZ, and EOU units.
Current rates remain unchanged, with operations subject to the FTP 2023 budgetary framework.

The existing RoDTEP rates, as notified, shall continue to apply for all export items. However, the operation of the scheme will remain subject to the budgetary framework provided under Para 4.54 of FTP 2023, so that remissions during the financial year are managed within the approved allocation.

In August 2021, the government announced tax refund rates for 8,555 products, including yarn. Various central and state duties, taxes, and levies on input products are refunded under the scheme, with rates ranging from 0.3 per cent to 4.3 per cent. RoDTEP refunds taxes and duties not covered by other schemes, in line with WTO provisions for compensating duties, taxes, and levies on exported products. In the textile industry, the scheme provides relief for exports of 18 items, including sarees and lungis.

Fibre2Fashion News Desk (KUL)