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United States implements trade provisions in the Consolidated Appropriations Act, 2026

Duty-free treatment extended under the African Growth and Opportunity Act and Caribbean Basin Economic Recovery Act

may 20, 2026

The president on May 19, 2026, signed a proclamation implementing trade-related provisions of the Consolidated Appropriations Act, 2026, which extends duty-free treatment and preferential trade programs for designated countries under the African Growth and Opportunity Act (AGOA) and the Caribbean Basin Economic Recovery Act (CBERA).

Consolidated Appropriations Act, 2026 amendments

The Consolidated Appropriations Act, 2026 (Public Law 119-75) amended several sections of the Trade Act of 1974, AGOA, and CBERA to extend various trade preference programs. Specifically, the legislation:

  • Extended duty-free treatment provided under title V of the Trade Act and AGOA through December 31, 2026
  • Extended the AGOA regional apparel article program and the third-country fabric program through December 31, 2026
  • Amended CBERA to extend duty-free treatment provided to Haiti through December 31, 2026
  • Changed the applicable percentage limits of the Haiti Economic Lift Program under CBERA, extending preferential treatment to not more than 1.25% of the aggregate square meter equivalents of all apparel articles imported into the United States in the most recent 12-month data period

Proclamation implementations

To execute these legislative changes, the proclamation provides:

  • Tariff schedule modifications: The proclamation modifies the Harmonized Tariff Schedule of the United States (HTSUS) to reflect the extensions of duty-free treatment and program limits through December 31, 2026. This includes making a technical correction regarding prior extensions of the third-country fabric program.
  • Haiti tariff treatment: The proclamation specifically modifies the HTSUS to ensure that the tariff treatment and applicable percentage limits intended for Haiti under CBERA are effective through December 31, 2026.
  • Gabon reinstatement: The proclamation redesignates the Gabonese Republic (Gabon) as a beneficiary sub-Saharan African country under AGOA and the Trade Act, effective January 1, 2026. Gabon previously had its designation terminated in December 2023 due to a lack of continual progress in meeting eligibility criteria. The HTSUS is modified to reflect this reinstatement based on recent actions by the Government of Gabon.
For more information, contact a professional with KPMG Trade & Customs services:

 

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@kpmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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