Published on 31/10/2023
U.S. President Joe Biden has announced his intention to terminate the participation of Uganda, Gabon, Niger, and the Central African Republic in the African Growth and Opportunity Act (AGOA) trade program.
The decision comes in response to what he referred to as “serious violations” of internationally recognized human rights by the Central African Republic and Uganda.
“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. Specifically, the Government of the Central African Republic has engaged in gross violations of internationally recognized human rights and has not established, or is not making continual progress toward establishing, the protection of internationally recognized worker rights, the rule of law, and political pluralism. Finally, the Government of Uganda has engaged in gross violations of internationally recognized human rights.” President Biden conveyed in a letter to the Speaker of the U.S. House of Representatives.
“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 added.
The development comes days after the U.S. government had issued a business advisory to notify U.S. businesses, individuals, and other U.S. entities about business risks under Uganda’s recently enacted Anti-Homosexuality Act.
President Biden said he intends to withdraw the beneficiary status of these countries as sub-Saharan African nations under AGOA, with the termination taking effect from January 1, 2024 but he was quick to note that he will continue to evaluate whether these countries align with the program’s eligibility criteria.
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 to reassure business and new investors who might have concerns over AGOA’s future.
