- US has banned access for Ethiopia, Mali, and Guinea to the African Growth and Opportunity Act (AGOA) on the basis of their alleged human rights violations and military coups.
- The countries were officially removed from the duty-free trade program on Saturday, January 1, 2022.
US has banned access for Ethiopia, Mali and Guinea to the African Growth and Opportunity Act (AGOA) on the basis of their alleged human rights violations and military coups. The countries were officially removed from the duty-free trade program on Saturday, January 1, 2022.
Since its enactment in 2000, by former US president Bill Clinton, the African Growth and Opportunity Act (AGOA) has been at the core of U.S. economic policy and commercial engagement with Africa. . Some amendments were made by the US Congress in 2015, and the program was extended to 2025. As of 2020, 38 African countries benefitted from AGOA, according to the USTR website.
US President Joe Biden had warned Ethiopia in November 2021, that it will stand to lose the AGOA benefits due to human rights violations in the Tigray region. Mali and Guinea were included due to recent coups. In a statement issued by the US Trade Representative (USTR), the US government expressed its serious concerns about the unconstitutional change in governments in both Guinea and Mali, and the gross violations of internationally recognized human rights violations in Ethiopia amid the year long conflict in northern Ethiopia.
The withdrawal of trade benefits under AGOA could adversely impact Ethiopia’s growing textile industry, which supplies global fashion brands. The Ethiopian economy is already hit by the pandemic and the Tigray conflict. Responding to the US action, the Ethiopian trade ministry said that it was very disappointed by the US decision which would reverse economic gains, and negatively impact women and children.
