US to remove Uganda, others from AGOA trade programme
KAMPALA, October 31, 2023 – The President of the United States, Joe Biden said on Monday that his government intends to end the participation of Uganda, Gabon, Niger, and the Central African Republic in the African Growth and Opportunity Act [ AGOA ] trade programme.
Biden said he was taking the step because of “gross violations” of internationally recognised human rights by Uganda and the Central African Republic.
He also talked of Niger and Gabon’s failure to establish or make continual progress toward the protection of political pluralism and the rule of law.
“Despite intensive engagement between the United States and the Central African Republic, Gabon, Niger, and Uganda, these countries have failed to address United States concerns about their non-compliance with the AGOA eligibility criteria,” Biden said in a letter to the speaker of the U.S. House of Representatives.
He said he intends to terminate the designation of these countries as beneficiary sub-Saharan African countries under the AGOA, effective Jan. 1, 2024.
He said he will continue to assess whether they meet the program’s eligibility requirements.
Launched in 2000, AGOA grants exports from qualifying countries duty-free access to the U.S. market. It is set to expire in September 2025, but discussions are already underway over whether to extend it and for how long.
African governments and industry groups are pushing for an early 10-year extension without changes in order to reassure business and new investors who might have concerns over AGOA’s future.
The four countries are yet to react to the announcement officially, which comes just before South Africa is due to host the 20th AGOA forum from Thursday this week.
Their expulsion from AGOA is likely to impact their economies, as AGOA has been credited with promoting exports, economic growth and job creation among participating countries.
Central African Republic is likely to be the least impacted by the AGOA expulsion, as it only recorded US$ 881,000 [£722,300] in US exports in 2022, according to US government data.
The country, however, imported goods worth US $23 million from the US in the same year, creating a massive trade deficit between the two countries.
US data also show that Uganda exported goods worth US$ 174mln to the US last year, while Gabon and Niger recorded US exports of US$ 220mln and US$73mln respectively in the same period.
President Yoweri Museveni said that several American companies had already stopped importing textiles – which fall under the AGOA trade deal – from Uganda due to the passing of the anti-homosexuality law.
“The homosexuals in the US are interfering with our export of textiles. Some of the orders have been cancelled there,” Museveni said.
In August, Museveni banned the importation of second-hand clothes, a move thought to target the US, which is a major supplier of the used garments to Uganda and other African countries.
The threat to exclude Niger and Gabon from AGOA is the latest US government action against the two junta-led countries.
The US State Department announced last week that it had suspended most foreign aid to Gabon and would only resume assistance if Gabon’s transitional government establishes democratic rule.
In August, US Secretary of State Antony Blinken announced a similar measure against Niger, saying that the US “is pausing certain foreign assistance programs benefitting the government of Niger”.
Burkina Faso, Mali and Guinea have all previously been expelled from AGOA after military coups in those countries.
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
