Malawi continues to trade less with the United States (US) under the African Growth and Opportunity Act (Agoa) compared to its peers,  with the country’s exports remaining  consistently lower in value over the past years, figures show.                                       

The Agoa data contained in a latest Trade Law Centre update shows that Malawi remains among the bottom three countries trading with the US under the Agoa window, with exports averaging about $30 million (about K30 billion) in the past two years.

Textiles exports were expected to increase with Agoa

The data shows that Malawi’s exports have been declining in the past two years.

In 2020, exports amounted to $34.5 million (about K35 billion) before falling to $17.8 million (about K18 billion) as at August this year.

This is despite the country having the National Agoa Response Strategy and Action Plan for Malawi through which government intends to increase exports by about 20 percent.

National Working Group on Trade and Policy chairperson Fredrick Changaya, speaking in an interview on Wednesday, said the declining trend dampens the aspirations not only under Agoa, but also in terms of trade for the country.

He said while it was hoped that the country would take advantage of the pact to grow exports, Malawi has failed.

“We continue to rely on commodity exports primarily tobacco, macadamia nuts and pigeon peas, among others. Traditionally, commodities suffer from price oscillations,” said Changaya, who is also Applecore Grain and Milling Limited.

Ministry of Trade and Industry spokesperson Mayeso Msokera is quoted as having said that the Agoa market access window still offers a lot of products originating from Malawi, duty-free and quota-free access to the US market.

“Our producers and exporters stand a chance to gain a competitive advantage over exporters in other countries,” he said.

Meanwhile, the US has reviewed its strategy towards sub-Saharan Africa under the Agoa.

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