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U.S. Midterms Set Up Democratic Control of Congress as Trade Policy Looms

Ramaphosa called the planned AGOA termination negative for South Africa; USTR says the president’s stated intent is for it to take effect Jan. 1, 2027.

Updated 2 min read
Pedestrians cross the grounds outside the U.S. Capitol in Washington, D.C. / EconoTimes.ai
Pedestrians cross the grounds outside the U.S. Capitol in Washington, D.C. / EconoTimes.ai

Associated Press race calls put Democrats in control of both chambers after the Nov. 3 U.S. midterms, raising trade policy questions abroad as lawmakers prepare to take office in January.

AP said some contests remained uncalled Nov. 4. The Congressional Research Service (CRS) says the Constitution gives Congress authority over foreign commerce and tariffs, although lawmakers have delegated some trade powers to the executive branch. Congress can amend statutory authority, use appropriations and conduct oversight to shape trade policy.

One trade issue facing the incoming Congress is the planned end of South Africa’s and Rwanda’s participation in the African Growth and Opportunity Act (AGOA). The Office of the United States Trade Representative (USTR) said U.S. President Donald Trump notified Congress and the two governments on Nov. 2 of his intent to terminate their participation. For South Africa, the administration cited barriers to U.S. trade and investment, corruption, and U.S. national-security and foreign-policy interests. USTR said the move followed an eligibility review.

South African President Cyril Ramaphosa described the planned termination as “negative,” Reuters reported, and said his government would focus on a bilateral trade agreement. Reuters also reported that Ramaphosa said the election result would “introduce a new era in world relations.”

China’s Ministry of Foreign Affairs (MFA) spokesperson Mao Ning called the midterms a domestic matter on Nov. 4. She said Beijing was ready to uphold and carry out key understandings reached by the two heads of state, improve communication, manage differences and expand cooperation.

The Associated Press reported that Kremlin spokesperson Dmitry Peskov hoped Trump would continue his peacemaking efforts regardless of the election outcome. A Chatham House analyst told AP that Congress may have more room to limit Trump on domestic policy than in foreign affairs. The reports cited here do not identify a new trade measure or foreign-policy decision prompted by the midterms.

USTR said the president’s stated intent is to terminate South Africa’s and Rwanda’s AGOA participation effective Jan. 1, 2027.

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