Ex-US envoy Kyle McCarter doubts extension of Agoa trade deal

Former US ambassador to Kenya Kyle McCarter speaking during a past interview.

Photo credit: File | Nation Media Group

Former US ambassador to Kenya Kyle McCarter has cast doubts on the extension of the Africa Growth and Opportunity Act (Agoa), saying the deal—which ends in September— has been unfavourable to the US.

The former envoy says the new Trump administration would likely drop the Bill HR 10366-Agoa Extension and Enhancement Act of 2024 seeking to extend the duty-free import window by 12 years to 2037.

Doubts about the extension of the window imply that Africa, including Kenya must now work on different avenues to continue accessing the US market on favourable terms.

“It’s not going to be renewed in this Trump administration. Agoa was not the agenda of the previous Trump administration,” Mr McCarter, a member of the ruling Republican Party, said in Nairobi on Tuesday.

“Agoa is a one-sided agreement and is set to the benefit of Kenya and not the US. You can’t classify Agoa as a reciprocal trade and it’s been very clear from President Trump that every arrangement is going to be a win-win.”

The US Congress has been deliberating Agoa’s potential reauthorisation amid contrasting views on the window even as the new Trump administration is yet to take a view on the arrangement.

Supporters of Agoa say the duty-free window has supported exports and encouraged investment in the sub-Saharan region by boosting private sector activity and generating demand for US goods and services as the region’s economies continue to grow.

However, the opponents say US producers may face increased import competition from African countries while stating the deal is not beneficial for US exporters.

“The Trump administration has not expressed its views on Agoa reauthorisation. United States Trade Representative Jamieson Greer said he would consult with Congress on Agoa reauthorisation based in part on a trade policy review ordered by President Trump,” says a report by the Congressional Research Service dated February 28,2025.

Kenya has been pursuing an alternative route to preferential US market access by negotiating a strategic trade and investment partnership (Stip).

The USTR held six rounds of in-person discussions of the US-Kenya Stip in 2024 where the US proposed a set of provisions designed to advance the use of science and risk-based measures, increase transparency and facilitate trade.

Mr McCarter says Kenya should take advantage of the ‘deal-making’ nature of President Trump to reach a deal on Stip, offsetting the impact from the potential termination of Agoa.

“There are many other opportunities. President Trump is known for being a deal maker and we need to take advantage of this and sit at the table and see what we can produce in Kenya to help the US and work together,” McCarter, who is allied to Trump’s Republican party added.

Kenya exported products worth Sh65.9 billion ($510 million) to the US under the Agoa scheme in 2023, albeit slower than Sh66.8 billion ($517 million) in 2022 with the slowdown attributed partly to a drop in the shipment of apparel products.

The country was among the top exporters of textile and apparel products under Agoa in 2023 alongside Madagascar, Lesotho, Tanzania, Mauritius and South Africa.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.