President Joe Biden has announced the termination of the participation of the Central African Republic, Gabon, Niger, and Uganda in the African Growth and Opportunity Act (AGOA) trade program. The decision comes in response to what the President described as “serious human rights violations” by the Central African Republic and Uganda, in particular.
Biden stated in a letter to Congress, “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.”
As a result, he intends to withdraw the beneficiary status of these nations as Sub-Saharan African countries under AGOA, effective January 1, 2024.
President Biden emphasized that his administration will continue to assess whether these countries meet the eligibility requirements for the program.
The AGOA, initiated in 2000, provides tariff-free export status for eligible countries regarding their access to the U.S. market; however, discussions are ongoing regarding its potential extension beyond its original expiration date of September, 2025.
African governments and industry leaders are advocating for a ten-year extension without changes to reassure businesses and potential investors about the future of AGOA.
On October 23, the US issued a business advisory for Uganda, citing potential risks due to an anti-LGBTQ law that has been condemned by many countries and by the UN.