The US House of Representatives has passed three-year extensions for the African Growth and Opportunity Act (AGOA) and the Haiti Economic Lift Program (HELP). On January 12, 2026, lawmakers voted 340-54 for the AGOA Extension Act and 345-45 for the HELP Extension Act, providing a legislative bridge through December 31, 2028. The move is specifically designed to halt the flight of apparel manufacturing from sub-Saharan Africa and Haiti following the programs' expiration on September 30, 2025, which had temporarily exposed exports to duties ranging from 10 per cent to 30 per cent.

Retroactive relief and nearshoring strategic value

A vital commercial provision of the new legislation is its retroactivity, allowing U.S. importers to claim refunds on duties paid during the four-month lapse. For the Haitian textile sector, which supports over 10,000 formal jobs, the extension of the HELP Act maintains duty-free rules for apparel regardless of yarn origin. Beth Hughes, Vice President of Trade at the American Apparel & Footwear Association (AAFA), noted that these programs are essential for ‘diversified sourcing goals’ and provide a counterweight to regional instability. By stabilizing these trade corridors, the US aims to protect nearshoring investments and prevent a ‘sourcing void’ that rival global powers are eager to fill.

Navigating the ‘Third-Country Fabric’ renewal

The legislation crucially preserves the ‘third-country fabric’ provision, a cornerstone for lesser-developed beneficiary countries like Kenya, Lesotho, and Madagascar. This rule allows manufacturers to source globally competitive yarns while retaining duty-free access to the U.S. market - a necessity for industries that lack vertical integration. While the three-year window is shorter than the 10-year renewal industry leaders sought, it provides the ‘predictability and certainty’ required for 2026 production cycles. Analysts suggest the extension also serves as leverage for the Trump administration to negotiate higher reciprocity, particularly with major partners like South Africa, whose eligibility remains under active review.

AGOA provides duty-free access for over 6,500 products from 32 eligible African nations. It mainly benefits the textiles and apparel industry. The extension aims to recover the 8 per cent export dip seen during the 2025 lapse. Enacted in 2000 (AGOA) and 2010 (HELP) to shift bilateral relations from aid to commerce.