Updated on: January 15, 2026

AGOA: Why the Renewal Matters for Mauritius

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In January 2026, the African Growth and Opportunity Act (AGOA) approved a three-year extension BY the U.S. House of Representatives . This decision allows Mauritius to continue exporting many products to the United States without paying customs duties until 31 December 2028.

This renewal is extremely important for Mauritius. AGOA had expired on 30 September 2025, creating three months of uncertainty for exporters. During that period, Mauritian products faced higher costs in the U.S. market, making them less competitive. The extension restores confidence and stability for businesses that depend on exports.

What is AGOA?

The African Growth and Opportunity Act (AGOA) is a U.S. trade programme created in 2000. Its goal is to support economic development in sub-Saharan Africa by giving eligible countries easier access to the U.S. market.

Under AGOA, qualifying African countries can export thousands of products to the United States duty-free and quota-free. This makes African products more competitive compared to those from countries that must pay import taxes.



What Does AGOA Cover?

AGOA allows duty-free access for 6,000 to 7,000 product categories, more than the standard U.S. preference schemes. These products include:

  • Textiles and clothing
  • Food and agricultural products
  • Seafood
  • Light manufactured goods
  • Automotive components

These are sectors where Mauritius already has experience and expertise, especially textiles and apparel.

To benefit from AGOA, countries must meet certain conditions, such as:

  • Supporting a market-based economy
  • Respecting the rule of law and democratic principles
  • Protecting human and labour rights
  • Fighting corruption and poverty
  • Allowing fair access to U.S. trade and investment

Mauritius has consistently met these requirements.

Recent Extension of AGOA

AGOA was first extended in 2015 for ten years, ending in September 2025. When it expired without immediate renewal, exporters across Africa faced uncertainty.

On 12 January 2026, the U.S. House approved a new extension until December 2028, with strong support from both political parties. The bill now awaits final approval by the U.S. Senate, which is expected.

Mauritius’ Role Under AGOA

Mauritius is one of the most successful AGOA beneficiaries. It has enjoyed full eligibility since the beginning and is approved for textile and apparel exports, the most valuable part of the programme.

Not all AGOA countries qualify for textile benefits, which gives Mauritius a competitive edge.

Trade with the United States

  • In 2022, U.S. imports from Mauritius reached USD 285 million (around MUR 13.2 billion).
  • Clothing and textiles made up the largest share of exports.

However, the short lapse of AGOA in late 2025 meant exporters had to pay tariffs again, reducing competitiveness and squeezing already thin profit margins.

Why AGOA Is So Important for Mauritius

A Key Part of Economic Development

Mauritius moved from a sugar-based economy to a diversified one largely through export-led growth. The textile sector, developed under the Export Processing Zone (EPZ), played a major role.

AGOA arrived at a crucial time, just before global textile quotas were removed in 2005. Without AGOA, Mauritian manufacturers would have struggled to compete with lower-cost producers in Asia.

AGOA allowed Mauritius to compete onquality, reliability, and compliance, not just low wages. This helped protect jobs and keep the industry alive.



Current Economic Challenges

Today, the economy faces several difficulties:

  • Exports are falling: Merchandise exports dropped by over 10% in mid-2025.
  • Textile sector pressure: Clothing exports declined, while some factories reduced staff or moved production to lower-cost countries like Madagascar.
  • Slower growth: GDP growth for 2025 is forecast between 3.0% and 3.5%.
  • Wider trade deficit: Imports are rising faster than exports.

Studies show that if AGOA were permanently removed, Mauritius’ textile exports could fall by nearly 10% by 2029, leading to job losses and lower foreign income.

Conclusion

The renewal of AGOA until December 2028 is a major win for Mauritius. It protects exports, supports jobs, and provides short-term stability for key industries, especially textiles.

However, AGOA should be seen as a temporary opportunity, not a long-term guarantee. Mauritius must use this period to modernise its economy, move up the value chain, and prepare for a future without trade preferences.

Handled wisely, the AGOA extension can act as a bridge toward a more resilient, diversified, and competitive Mauritian economy.

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