Despite a late push, Ethiopia is set to exit the US trade pact
Despite a last-minute drive backed by diaspora members who fear that Washington may lose an ally, Ethiopia is likely to lose important commercial privileges in the United States on January 1 due to human rights concerns.
President Joe Biden said on November 2 that Ethiopia, a longtime US ally and the continent’s second most populous country, will be removed from the African Growth and Opportunity Act in the New Year, citing “grave violations” in the year-long conflict with Tigrayan rebels.
The Ethiopian government has fought hard against the proposal, estimating that the 2000 law, which gives duty-free access to most goods, has supported one million employment directly or indirectly.
In a letter to Biden, the leaders of the Senate and House subcommittees on Africa encouraged him to reconsider the “rash” approach, citing a recent rebel retreat as an opportunity for negotiation.
Senator Chris Van Hollen and Representative Karen Bass, both members of Biden’s Democratic Party, stated, “We are concerned that suspending AGOA assistance will be unproductive and disproportionately damage the most vulnerable Ethiopians without helping to the cessation of hostilities.”
“Moreover, this decision encourages China to bolster its commercial presence in the Horn of Africa.”
Both Van Hollen and Bass represent areas with large concentrations of Ethiopian-Americans, a population estimated to number between 250,000 and one million people and which has increasingly flexed political power in the wake of the war.
Biden is unlikely to reconsider his decision before January 1, according to Mesfin Tegenu, chairman of the American-Ethiopian Public Affairs Committee, but the president might readmit Ethiopia “with a stroke of a pen.”
He praised Prime Minister Abiy Ahmed’s government as “the most pro-Western the country has ever had,” and claimed that eliminating trade privileges would only invite China, which has been extending its influence in Africa and has chastised Biden for his decision.
“For our country to be freely replaced by a competitive power is going to be a disastrous mistake,” Mesfin remarked.
“Whatever political benefit the administration thinks they’ll receive from this, they won’t get it because the world’s geopolitical environment has changed.”
Mali and Guinea, both in the midst of a coup, were also pulled from AGOA by Biden. The administration stated that the three countries may re-enter provided their reservations were addressed.
When establishing AGOA, Congress imposed limitations, according to Jeffrey Feltman, the US special envoy for the Horn of Africa.
“According to the law, countries that commit grave violations of human rights would be denied.
Read related news articles
** AGOA eligibility review 2023 (for year 2024): Timelines of hearings and request for comments ** [Deadline written submissions 7 July]
The Office of the United States Trade Representative (USTR) is announcing the initiation of the annual review of the eligibility of sub-Saharan African countries to receive the benefits of the African Growth and Opportunity Act (AGOA). The AGOA Implementation Subcommittee of the Trade Policy Staff Committee (AGOA Subcommittee) is requesting written public comments for this review and will conduct a virtual public hearing on this matter. In...
16 May 2023
Cameroon aims to boost export revenues, rejoin AGOA - minister
Cameroon is working to boost export revenues to fend off a potential debt crisis and has relaunched talks with the U.S. to rejoin Washington's flagship trade initiative with Africa, its economy minister said on Monday. The economic fallout from the COVID-19 pandemic and the subsequent global shocks provoked by the war in Ukraine have hit African countries hard, denting economic growth and aggravating their sovereign debt positions. The...
11 April 2023
Somalia pursues AGOA membership to bolster trade
The Somali government officially applied to join the 36 African countries on Thursday, benefiting from the African Growth and Opportunity Act (AGOA). The announcement was made during the Somalia AGOA application ceremony, where outgoing U.S. Ambassador to Somalia, Larry André, highlighted the United States’ commitment to expanding and modernizing partnerships in Africa and Somalia. Ambassador André emphasized that the U.S....
10 April 2023
State Secretary Blinken praises Ethiopia on Tigray peace, no return to trade programme yet
U.S. Secretary of State Antony Blinken praised Ethiopia on Wednesday for its progress in implementing a peace deal to end the Tigray conflict, but stopped short of ushering the country back into a U.S. trade programme. Visiting Ethiopia to repair relations that were strained by the two-year war in the northern region, Blinken met with Prime Minister Abiy Ahmed and discussed ongoing efforts to solidify peace, restore basic services and address...
13 March 2023
Ethiopia asks US to reinstate AGOA trade benefits as US Secretary of State Blinken heads to Addis, Niger
Ethiopia is asking the Joe Biden administration to reinstate its duty-free access to the US market, arguing that “exceptional circumstances” warrant an immediate re-examination of its suspension just as Secretary of State Antony Blinken heads to Addis Ababa to discuss the cessation of hostilities in Tigray. The Office of the US Trade Representative (USTR) terminated Ethiopia’s participation in the African Growth and Opportunity Act...
09 March 2023
US to remove Burkina Faso from AGOA effective 1 January 2023: White House
U.S. President Joe Biden revealed on Wednesday his intent to exclude Burkina Faso from a U.S.-Africa trade pact, citing a lack of progress toward protecting the rule of law and political pluralism. Biden said that Washington will terminate Burkina Faso's designation as a beneficiary sub-Saharan African country under the African Growth and Opportunity Act (AGOA), starting January 2023 as it has not met"eligibility requirements." The decision...
02 November 2022
Kenya 'reaps Sh10 billion after Ethiopia's ban from AGOA deal'
Kenya earned an additional Sh10.2 billion from its exports to the US as Nairobi reaped big from Ethiopia’s suspension from a duty-free trade pact. Last year, Kenya’s exports to the US — mostly apparel were valued at Sh59.6 billion, a jump of more than a fifth from Sh49.4 billion in 2020 as Kenyan traders sold more goods through the African Growth and Opportunity Act (Agoa), a free trade agreement between Washington and select African...
24 May 2022
US Senator requests return of Ethiopia to AGOA
A U.S senator has requested the senate to return Ethiopia to AGOA as it has been progressing in many aspects. U.S. Senator from Virginia Mark Warner said the U.S. should strengthen and improve the trade relationship between Africa specifically Ethiopia. The Ethiopian government has been pending progress in many aspects, especially the ceasefire. The trade relation between Africa specifically with Ethiopia is important. “We do that...
05 April 2022
In Ethiopia, Guinea and Mali, fears rise over losing duty-free access to US market
For Sammy Abdella, the new year has brought bad tidings: the prospect of a steep drop in sales of scarves, rugs, baskets and other textile goods produced by Sammy Handmade in Ethiopia. “The U.S. market is our main destination,” said Abdella, who estimates it accounts for nearly two-thirds of sales for his Addis Ababa-based home decor and fashion company. “So, losing that put us in a very, you know, bad situation.” The source of...
20 January 2022
What does the US decision to delist three African countries from AGOA status imply?
Trade is one highly significant part of Africa’s story. Its pre-colonial, colonial and post-colonial transitions are all marked by trade. But for many years, African trade has struggled with several challenges: poor infrastructure, high transaction costs, opportunism and unfriendly policies. So when President Bill Clinton signed the African Growth and Opportunity Act (AGOA) in 2000, African countries were given a competitive edge by...
11 January 2022
US takes Ethiopia, Mali, Guinea off AGOA program
The United States on Saturday cut Ethiopia, Mali and Guinea from access to a duty-free trade program, following through on President Joe Biden's threat to do so over accusations of human rights violations and recent coups. "The United States today terminated Ethiopia, Mali and Guinea from the AGOA trade preference program due to actions taken by each of their governments in violation of the AGOA Statute," the U.S. Trade Representative's...
01 January 2022
