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US announces removal of Uganda and three African countries from trade deal

in Africa, International News
US announces removal of Uganda and three African countries from trade deal

US announces removal of Uganda and three African countries from trade deal

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US President Joe Biden has unveiled plans to exclude Uganda, Gabon, Niger, and the Central African Republic from the African Growth and Opportunity Act (Agoa), a special trade programme that provides eligible sub-Saharan African countries with duty-free access to the US for over 1,800 products.

The decision, announced on Monday, was made on the grounds of “gross violations” of human rights and the absence of progress toward democratic governance in these nations.

Niger and Gabon, both of which have experienced military takeovers earlier this year, are deemed ineligible for Agoa due to their failure to establish and maintain political pluralism and the rule of law. These coups have raised concerns about the democratic processes in both countries.

The removal of the Central African Republic (CAR) and Uganda from Agoa is attributed to “gross violations of internationally recognized human rights” by their respective governments.

In May, the US government signaled its intention to consider expelling Uganda from Agoa and implementing sanctions after the country passed a controversial anti-homosexuality law, which imposed severe penalties on individuals found guilty of certain same-sex acts, drawing worldwide criticism.

President Biden stated in a letter addressed to the speaker of the US House of Representatives that despite extensive engagement efforts, these four countries have failed to address US concerns about their non-compliance with Agoa eligibility criteria.

The affected countries, Uganda, Gabon, Niger and the Central African Republic, are yet to respond to this announcement. Their expulsion from Agoa is set to come into effect at the beginning of 2024.

The move is likely to have a significant impact on their economies, as Agoa has played a pivotal role in promoting exports, economic growth, and job creation among participating nations.

Notably, this is not the first time that Agoa eligibility has been revoked following military coups. Previously, Burkina Faso, Mali and Guinea were removed from the programme under similar circumstances.

In a related development, the US State Department recently announced the suspension of most foreign aid to Gabon and Niger and these countries will only see a resumption of assistance if they establish democratic rule in their transitional governments.

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