https://en.sputniknews.africa/20231031/us-to-suspend-four-african-countries-from-its-agoa-trade-program-1063215498.html
US to Suspend Four African Countries From Its AGOA Trade Program
US to Suspend Four African Countries From Its AGOA Trade Program
Sputnik Africa
The African Growth and Opportunity Act (AGOA) was enacted in 2000 during the presidency of Bill Clinton. Its aim is to promote trade, investment, and economic... 31.10.2023, Sputnik Africa
2023-10-31T10:49+0100
2023-10-31T10:49+0100
2023-10-31T11:09+0100
international
united states (us)
gabon
niger
central african republic
uganda
us sanctions
joe biden
trade
free trade agreement
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US President Joe Biden on Monday announced that his administration would exclude four African countries - Gabon, Niger, Uganda and the Central African Republic - from the African Growth and Opportunity Act trade program.The US president stated that this step was being taken due to the "gross violations" of internationally recognized human rights allegedly committed by the Central African Republic and Uganda.In addition, Biden noted that Niger and Gabon have failed to establish or make progress in protecting political pluralism and upholding the rule of law. This comes in the wake of recent military-led coups in both Niger and Gabon that overthrew their governments.He added, "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."The US leader announced that as of January 1, 2024, the four African countries will no longer be designated as beneficiary countries under AGOA. However, he emphasized that their eligibility for the duty-free trade program will continue to be assessed.Enacted in 2000, the African Growth and Opportunity Act grants duty-free access to the US market for exports from "eligible" sub-Saharan African countries. Although AGOA is set to expire in September 2025, discussions are already underway regarding its extension and potential duration.Risks for AfricaSince its launch, several countries, including Ethiopia, Mali, Guinea and Cameroon have been suspended from the program.Earlier this year, the World Bank said in its report on uncertainty in preferential trade agreements that non-reciprocal trade deals, such as AGOA, pose a significant risk to the economies of developing countries due to the possibility of abrupt suspension. According to the report, the possibility of unilateral removal of preferences by the granting country creates uncertainty for the participating states and their firms in particular, which results in reduced use of preferences, despite their existence. The report indicated that suspension from the agreement brought about a 39% drop in the suspended countries' exports to the US.In June, South Africa was threatened with losing the benefits of AGOA after a group of members of the US House of Representatives petitioned the White House to revoke Pretoria's status under the trade policy because of its neutrality in the Ukraine conflict.
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international, united states (us), gabon, niger, central african republic, uganda, us sanctions, joe biden, trade, free trade agreement, free trade, african growth and opportunity act (agoa)
US to Suspend Four African Countries From Its AGOA Trade Program
10:49 31.10.2023 (Updated: 11:09 31.10.2023) Muhammad Nooh Osman
Writer/Editor
The African Growth and Opportunity Act (AGOA) was enacted in 2000 during the presidency of Bill Clinton. Its aim is to promote trade, investment, and economic cooperation between the US and "eligible" sub-Saharan African countries, thereby facilitating economic growth and development in the region.
US President Joe Biden on Monday announced that his administration would exclude four African countries - Gabon, Niger, Uganda and the Central African Republic - from the
African Growth and Opportunity Act trade program.
The US president stated that this step was being taken due to the "gross violations" of internationally recognized human rights allegedly committed by the Central African Republic and Uganda.
In addition, Biden noted that
Niger and
Gabon have failed to establish or make progress in protecting political pluralism and upholding the rule of law. This comes in the wake of recent military-led coups in both Niger and Gabon that overthrew their governments.
"I am taking this step because I have determined that the Central African Republic, Gabon, Niger, and Uganda do not meet the eligibility requirements," Biden said in a letter to the speaker of the US House of Representatives.
He added, "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."
The US leader announced that as of January 1, 2024, the four African countries will no longer be designated as beneficiary countries under AGOA. However, he emphasized that their eligibility for the duty-free trade program will continue to be assessed.
Enacted in 2000, the African Growth and Opportunity Act grants duty-free access to the US market for exports from "
eligible" sub-Saharan African countries. Although AGOA is set to expire in September 2025, discussions are already underway regarding its
extension and potential duration.
Since its launch, several countries, including Ethiopia, Mali, Guinea and Cameroon have been suspended from the program.
Earlier this year, the World Bank said in its
report on uncertainty in preferential trade agreements that non-reciprocal trade deals, such as AGOA, pose a significant risk to the economies of developing countries due to the possibility of abrupt suspension.
According to the report, the possibility of
unilateral removal of preferences by the granting country creates uncertainty for the participating states and their firms in particular, which results in reduced use of preferences, despite their existence. The report indicated that suspension from the agreement brought about a 39% drop in the suspended countries' exports to the US.
In June, South Africa
was threatened with losing the benefits of AGOA after a group of members of the US House of Representatives petitioned the White House to revoke Pretoria's status under the trade policy because of its neutrality in the Ukraine conflict.
