Malawi ranks 15 out of 35 countries in Africa that have most utilised the African Growth and Opportunity Act (Agoa) trade window over the past 23 years, figures show.
Since Agoa’s inception in 2000, Malawi has exported goods worth $1.55 billion (about K1.68 trillion) to the US, with $1.15 billion (about K1.24 trillion) qualifying for Agoa preferences.
Figures from the US Embassy in Malawi show that the country’s exports to the US through Agoa have increased by 6.5 percent from $15.9 million (about K17.23 billion) through June 2022 to $16.94 million (about K18.56 billion) as of June 2023.
Malawi’s exports to the US comprise mostly agricultural products such as tobacco, sugar, tea, and nuts.
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This, however, comes amid fears that the 58 percent of products exported to the US duty-free under the initiative may face tariff barriers from September 2025 when the facility comes to an end.
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Agoa offers special access to the US market for qualifying exports from sub-Saharan African beneficiary countries including Malawi, but also provides a framework for other US support to, and engagement with, African countries.
But in an interview, Ministry of Trade spokesperson Mayeso Msokera said Malawi is aware of the development and will join other beneficiaries in calling for the renewal of Agoa beyond 2025.
“The preferential trade programme has contributed significantly towards enhancing exports between Malawi and the US.
“However, in terms of sustainability beyond Agoa, Malawi’s Trade Integration Policy is to continue negotiating for more favourable market access with her partners including the US and maximise on the opportunities arising from other unilateral trade preferences, bilateral arrangements and regional trade agreements such as the AfCFTA,” Msokera said.
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US Ambassador to Malawi said the US government fully supports reauthorising the Agoa. David Young
He added that the current US administration is committed to working closely with Congress throughout the process to ensure this legislation is impactful and relevant.
“Policy tools like Agoa are meant to be used, tested and sharpened over time which is the driving purpose of the Agoa Forum being held this week in Johannesburg, South Africa.
“This convening is an opportunity to gauge progress to date and perhaps, more importantly, discuss if we can improve Agoa to better serve more Africans and Americans. Not only that, the forum is a catalyst to convene a broader community,” Young said.
