Since the announcement of series of tariffs by US President Donald Trump, countries have been reacting with markets in turmoil. Nigeria received a 14% slap with countries like China getting as high as 34%. The reactions have been mixed as nation’s race to mitigate the effects. The Central Bank of Nigeria (CBN) hurriedly injected US$197.71 million through the fx market into the economy.
Reacting to the development, Research Professor of Law, Muhammed Tawfiq Ladan said although the range of tariffs imposed on most African countries are comparatively moderate, ranging between 10% and 50%, it nevertheless raises fundamental issues regarding the future of USA-Africa trade relations in the context of both AGOA AND AFCFTA.
He stated that AGOA is a unilateral trade preference arrangement where the United States sets the terms without reciprocal obligations from beneficiary countries. While it offers duty-free access, it can be modified, suspended or withdrawn at any time by the U.S. – making it an inherently unpredictable and insecure trade framework for African economies.
Over the years, this position has been questioned as American authorities defended the lopsidedness of the AGOA agreement, holding on to the argument that the African nations signed it; 6,700 items are on this list. This raises concern over the series of treaties and agreements African leaders signed without paying proper attention to details of what they are committing to.
This development casts a long shadow over AGOA and it raises urgent questions about the reliability of unilateral trade preferences as a foundation for African development.
Professor Ladan who pointed out that this is not just an individual country issue but an African continental one said the answer lies in accelerating the implementation of the African Continental Free Trade Area (AfCFTA). “With 54 signatories, the AfCFTA presents Africans with an unparalleled opportunity to build a resilient internally-driven economic architecture that reduces dependency on volatile external markets. Africa has a combined market of over 1.3 billion people – the AfCFTA offers Africa the chance to scale local industries, retain value chains and shield itself from geopolitical shocks”.
He concluded by stressing that strengthening intra-African trade, investing in regional value chains and speaking with one voice in global trade forums are no longer aspirational goals but urgent priorities.
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