Following a one-year extension in February, the US Senate has voted to renew the African Growth and Opportunity Act (AGOA) until the end of 2028. However, Washington has set conditions, notably including preferential access to critical minerals in beneficiary countries.
This is a decisive step. Following the US Senate vote on August 8, the legislative process for the extension of AGOA has entered its final stretch. US senators voted overwhelmingly in favor of renewing this mechanism, which provides a preferential framework for exports to the United States, until December 31, 2028.
The extension was passed as part of a broader bill on interim funding and budget extensions, with a vote of 90 to 6. This vote marks the end of debates on the renewal of this trade program within the US Congress. For Madagascar, this extension is a breath of fresh air, as the mechanism supports a significant portion of Malagasy exports, particularly in the textile sector, which is the country’s main provider of industrial jobs, as well as the vanilla and spice sectors.
The US Senate vote is a reassuring signal, especially coming weeks after the Groupement des entreprises franches et partenaires (GEFP) raised concerns about the sector’s growing difficulties due to fiscal pressure. However, the extension is not a blank check. US authorities intend to strengthen reciprocity requirements in line with President Trump’s “America First” policy.
Furthermore, on the recommendation of the Ways and Means Committee, new provisions have been introduced to “prioritize and simplify access to and processing of critical minerals in AGOA beneficiary countries.” These provisions could directly affect Madagascar, specifically regarding the Vara Mada mining project (formerly Base Toliara), which represents the largest US private investment in the country. The project’s launch has faced persistent opposition from local populations and certain political figures.
In June, US officials visited Madagascar to meet with the Head of State, the Prime Minister, and the President of the National Assembly, reportedly to discuss the Vara Mada project, highlighting the strategic importance the White House places on this mining venture.
Captured & Published at: 2026-08-11 06:08:33 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/08/accord-commercial-le-senat-americain.html
