Somali Magazine – Uganda, Burkina Faso, Gabon, Niger, and the Central African Republic (CAR) have been locked out of the African Growth and Opportunity Act (AGOA) starting January next year by Joe Biden’s administration.
Over the years, the AGOA trade pact has created thousands of jobs in different industries, especially for the youth. However, these jobs might be affected negatively.
In 2000, the US government rolled out AGOA,a deal that provides duty-free access to the US for over 1,800 products for eligible sub-Saharan African countries.
The expulsion of the four from AGOA pact will significantly affect their economies already grappling with global pressures.
Last year, US data shows CAR traded goods worth $881,000 with the US under AGOA. While, Uganda recorded $174 million, Gabon $220 million, and Niger $73 million in AGOA-linked trade.
“Despite intensive engagement between the United States and the CAR, Gabon, Niger, and Uganda, these countries have failed to address US concerns about their non-compliance with the Agoa eligibility criteria,” said President Biden.
Biden’s move to oust the four comes ahead of this week’s 20th AGOA Forum to be held in Johannesburg. In his letter to the Congress, Biden said the decision comes following collapse of talks with the said countries. He said the US has engaged in vain with the said countries over their breach of conditions laid out under Agoa membership.
“I am taking this step because I have determined that the Central African Republic, Gabon, Niger, and Uganda do not meet the eligibility requirements of section 104 of the AGOA criteria,” said Biden.
US government accused CAR of engaging in gross violations of internationally recognized human rights.
Biden added that authorities in CAR’s capital city- Bangui are not making continual progress toward establishing the protection of internationally recognized worker rights, the rule of law, and political pluralism.
Niger and Gabon were also accused not making continual progress toward political pluralism and the rule of law.
On Uganda’s issue, Biden said that the regime engaged in gross violations of internationally recognized human rights.” Since the signing into law of a law banning homosexuality, Uganda has been in the bad books of Washington.
According to the Office of the US Trade Representative for AGOA, US goods exports to Niger in 2022 were $96 million, down 30.3 per cent from 2021. US imports from Niger totaled $73 million in 2022, down 22.7 per cent from 2021. The US goods trade surplus with Niger was $23 million in 2022, a 47.1 percent decrease ($20 million) over 2021.
In troubled CAR, US exports to the country last year were $23 million, up 30.4 per cent ($5 million) from 2021. The US goods trade surplus with the CAR was $22 million in 2022, a 39.3 per cent increase ($6 million) over 2021.