đČđŹ MADAGASCAR FACING AMERICAN TAXES: WHAT CHALLENGES AND OPTIONS?
Starting from August 7, 2025, Malagasy products exported to the United States will be taxed at 15%, up from 10% previously. This increase follows Madagascar's exit from the AGOA program, reserved for countries meeting certain standards (democracy, good governance, social rights). Only a few states like Kenya or Senegal still benefit from it.
The textile sector, which employs over 200,000 people, is the most affected. Malagasy clothing will now be more expensive than that from Kenya, threatening jobs and factory activity. However, vanilla â of which Madagascar is the global leader â remains exempt from tax, as it is essential to American industries.
But be careful: relying solely on vanilla would be risky. In the event of a climate crisis or a drop in prices, the economy would suffer significantly.
Could China be an alternative? Already very present (80% of textile factories), it could increase its purchases or redirect exports to other markets. But relying too much on it also carries risks.
What to do?
Revive relations with the United States by improving governance to regain AGOA status.
Modernize the textile sector to move upmarket.
Diversify outlets towards Europe, Africa, or India.
Avoid dependence on a single partner, whether Western or Asian.
Conclusion: Madagascar must find a balance between its partners, defend its interests, and strengthen its economic sovereignty.
đ What do you think? USA, China⊠or both?
đŹ Share your opinion in the comments!
đ Like and share if you enjoyed it!
