ABUJA, Nigeria: As the expiry of Africa’s preferential trade deal with the United States nears in September, the government there is leaning more towards reciprocity and African states should call and start negotiations, a key ally of Donald Trump has told a meeting of top African leaders here.
Jason Miller, widely recognised as Trump’s right-hand man and a key adviser in his 2016, 2020 and 2024 election campaigns, told more than 3,000 delegates at the Afreximbank Annual Meetings yesterday that much had changed in the countries benefiting from the African Growth and Opportunities Act (AGOA) over the last two decades.
One major change, he said, has been the growing influence of China in African trade, as a rival to the U.S.
“Some things have changed over the last 20 years,” he said. “Over the last 20 years, there are now numerous countries in Africa that have imposed tariff barriers and non-tariff barriers on American products. “And for many countries, China has become their number one trading partner.”
Miller said the U.S was watching whether African countries were giving it inferior trade treatment compared to other countries such as China.
“If there are barriers being put on American products, barriers that prevent entry, and China is getting a much better deal, then of course the U.S. is going to be looking to make a better deal on that,” he said.
Miller called on African governments to reach out to the U.S administration and begin trade talks.
Trump announced sweeping global tariffs in April, with planned levies of up to 50% for certain African states, on their products entering the U.S.
He subsequently suspended the move until July 8, saying this would give countries time to negotiate “fair” deals that would reduce their trade imbalances with the U.S. Under the suspension, countries still pay a flat 10% on their goods into the U.S.
Should the planned tariffs proceed unchanged, Botswana’s goods into the U.S would be levied at 37%.
“Now, what I would urge (is that) if you represent or you work with a government that has a trade imbalance with the United States or there are non-tariff barriers that are currently in place, call the United States. “Call Jamieson Greer, the U.S. Trade Representative. “Reach out and talk about how we can get to a better equilibrium, because with these more equalised trading agreements, then that's going to increase the flow of goods back and forth,” Miller said.
Since 2000, US-Africa trade and economic relations have been based on AGOA, a trade arrangement between the U.S and sub-Saharan African countries including Botswana, which provides relaxed access to the American market.
Despite impassioned lobbying by African countries for an early renewal of the deal, including talks during the high-level US Africa Leaders’ Summit called by former President Joe Biden in December 2022, AGOA is set to expire this September.
Annually, AGOA involves billions of US dollars in trade and while Botswana’s own exports, which were mainly textile, have declined from their previous billions, resurgent numbers are being seen in diamond jewellery from KGK Diamonds and other non-diamond sectors.
According to US figures, in 2023 US imports under AGOA totalled $9.7 billion, consisting of approximately $4.2 billion in crude oil and $5.5 billion in other products, including $1.1 billion in apparel and more than $900 million in agricultural products.
