Trade policy update
AGOA · US Tariffs · Madagascar Exporters · 2026
AGOA Madagascar 2026: status, tariffs, and what exporters must know.
AGOA expired on 30 September 2025. Madagascar-origin goods entering the US now face Section 122 tariffs of 10%. A stopgap extension is being lobbied, but no legislation has passed. This guide maps the current tariff situation, the Third Country Fabric provision, and what garment, seafood, and vanilla exporters need to do now.
TL;DR
The short version.
AGOA expired 30 September 2025. The 10% Section 122 tariff is active on most Madagascar-origin goods. A stopgap extension is being lobbied by African trade coalitions but has not passed Congress. The Third Country Fabric provision — which allows Madagascar to import Asian fabric and still qualify for AGOA — remains the survival condition for the textile sector. 60,000 direct EPZ jobs are at risk. Diversify markets, maintain compliance documentation, and monitor Congressional action.
Tariff timeline
From duty-free to 10% — the tariff trajectory.
Madagascar enjoyed duty-free access to the US market for 25 years under AGOA. The expiry triggered a sharp tariff increase that erodes price competitiveness for garment, seafood, and vanilla exporters.
| Period | Tariff rate | Notes |
|---|---|---|
| 2000–2025 | 0% (duty-free) | AGOA preferences active. Madagascar garment, seafood, and vanilla exports entered the US duty-free under AGOA. |
| Oct 2025 | 15% (MFN) | AGOA expired 30 September 2025. All Madagascar-origin goods reverted to Most-Favoured-Nation tariff rates. |
| 2026 | 10% (Section 122) | Section 122 tariff applied. A temporary reduction from MFN rates, but still significantly above AGOA zero-tariff. |
Third Country Fabric
The survival condition for Madagascar's textile sector.
The Third Country Fabric (TCF) provision allows Madagascar — which has no significant domestic yarn or fabric production — to import textiles from Asia (primarily China) and still qualify finished garments for duty-free AGOA entry. Without TCF, Madagascar cannot compete with Asian manufacturers on price.
Roughly 70% of Africa's AGOA apparel revenue uses Chinese-origin fabric under this provision. If AGOA is reauthorised without TCF, Madagascar loses the competitive edge that makes its garment sector viable for US buyers.
Jobs at risk
60,000 direct EPZ jobs hang in the balance.
An estimated 60,000 direct EPZ jobs are at risk, predominantly held by women in Antananarivo, Antsirabe, and Toamasina industrial zones. Indirect employment — transport, subcontracting, services, and commerce — multiplies the exposure.
During the 2009–2014 AGOA suspension, Madagascar's textile sector lost over 30,000 jobs. The current situation is more severe because the entire sector faces simultaneous tariff pressure rather than a targeted suspension.
Action items
What Madagascar exporters should do right now.
The policy landscape is uncertain, but exporters are not powerless. Four concrete steps reduce exposure and position your business for recovery when AGOA is reauthorised.
01
Diversify markets now
Maintain China (LDC zero-tariff, open-ended), EU (EBA), and UK (DCTS) access in parallel. Do not depend solely on the US market while AGOA status is uncertain.
02
Maintain AGOA compliance documentation
Keep your AGOA Textile Certificate of Origin and compliance records current. Preferences can be restored immediately upon reauthorisation — if your documentation is ready.
03
Monitor US Congressional action
Track the stopgap extension bill. African trade coalitions are lobbying for a two-year extension. No legislation has passed as of August 2026, but the window is still open.
04
Verify HS classifications
Work with your customs broker to verify HS codes and model landed costs at current Section 122 rates. Some HS lines face higher MFN rates that make exports uncompetitive.
Common questions
AGOA Madagascar 2026, answered.
- Is AGOA currently active for Madagascar?
- No. AGOA expired on 30 September 2025 and has not been reauthorised. Madagascar-origin goods entering the US now face Most-Favoured-Nation tariff rates. A stopgap extension is being lobbied by African trade coalitions, but as of August 2026 no legislation has passed.
- What tariff applies to Madagascar exports to the US right now?
- Section 122 tariffs of 10% are active on most Madagascar-origin goods. For garment exporters, this means cotton trousers (~16% MFN), synthetic apparel (~32% on some HS lines), and knitwear (~10–18%) now enter at full duty — erasing the AGOA price edge versus Vietnam and Bangladesh.
- What is the Third Country Fabric provision and why does it matter?
- The Third Country Fabric (TCF) provision allows Madagascar — which has no significant domestic yarn or fabric production — to import textiles from Asia (primarily China) and still qualify finished garments for duty-free AGOA entry. Without TCF, Madagascar cannot compete with Asian manufacturers on price. Roughly 70% of Africa's AGOA apparel revenue uses Chinese-origin fabric under this provision.
- How many jobs are at risk from the AGOA lapse?
- An estimated 60,000 direct EPZ jobs are at risk, predominantly held by women in Antananarivo, Antsirabe, and Toamasina industrial zones. Indirect employment — transport, subcontracting, services, and commerce — multiplies the exposure. During the 2009–2014 suspension, Madagascar's textile sector lost over 30,000 jobs.
- What should Madagascar exporters do right now?
- Diversify markets now — maintain China (LDC zero-tariff, open-ended), EU (EBA), and UK (DCTS) access in parallel. Monitor US Congressional action on the stopgap extension. Maintain AGOA compliance documentation (AGOA Textile Certificate of Origin) so preferences can be restored immediately upon reauthorisation. Work with customs brokers to verify HS classifications and model landed costs at current MFN rates.
Continue reading
Related resources.
Export from Madagascar guide
End-to-end overview of Madagascar's export landscape — compliance, logistics, and market access.
Freight forwarders in Madagascar
Vetted logistics partners for air, sea, and road freight from Antananarivo, Toamasina, and Majunga.
China zero-tariff option
How Madagascar exporters can leverage China's LDC zero-tariff scheme as AGOA uncertainty continues.
AGOA 2025 background
Background on AGOA expiry and what it meant for Madagascar's garment, seafood, and vanilla sectors.
Need clarity on AGOA status and tariff impact? Message us on WhatsApp.
Send your product type, HS codes, and current US market exposure. We will map the tariff impact and identify diversification options for your specific situation.