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Uganda, Central African Republic, Gabon and Niger Out from AGOA

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 The United States struck Uganda, the Central African Republic, Gabon, and Niger as beneficiaries of the African Growth and Opportunity Act (AGOA), on the ground that the East African countries have a poor human rights protection track record. The ban will be effective from January 1 for all the countries on the list.

The United States struck off Uganda, Central African Republic, Gabon, and Niger as beneficiaries of the African Growth and Opportunity Act (AGOA), on the ground that the East African countries have a poor human rights protection track record. The ban will be effective from January 1 for all the countries on the list.

The decree was issued by US President Joe Biden on December 29. Analysts say it will effectively dampen countries’ ability to export certain commodities to the US tax-free. AGOA has been in existence since 2000. In the case of Uganda, which did not go against the interest of the US at any point in time, the reason behind the drastic decision was the passage of the controversial Anti-Homosexuality Act last year.  The law could impose life imprisonment or even the death penalty for same-sex conduct.

In October, Biden said that Uganda’s removal from AGOA was due to ‘gross violations of internationally recognized human rights. The decree said that these countries have failed to address the United States’ concerns about non-compliance with the AGOA eligibility criteria. Biden said that AGOA gives eligible sub-Saharan African countries duty-free access to the US for more than 1,800 products. It is set to expire in December 2025.  The US has signaled intentions to extend it.  Uganda has mostly exported agricultural goods, as well as textiles, duty-free to the United States taking advantage of AGOA.

Read Also:

https://trendsnafrica.com/agoa-chasing-new-frontiers/

https://trendsnafrica.com/agoa-tanzania-calls-for-a-minimum-20-year-extension/

Close to 80% of Uganda’s exports to the US were from the agricultural sector, which employs about 72 percent of the workforce. In the 12 months to June 2023, Uganda’s exports to the US under Agoa amounted to US$8.2 million, about 11.5 percent of its total exports to the US in the same period, aggregating USD 70.7 million.