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 follows two coups that shook the Sahel nation this year as a result of frustration over the inability to put an end to a seven-year Islamist insurgency that has cost thousands of lives and forced close to 2 million people from their homes.
More than a third of national territory remains outside government control.
"I am taking this step because I have determined that the Government of Burkina Faso has not established, or is not making continual progress toward establishing, the protection of the rule of law and of political pluralism," said Biden in a letter addressed to Congress.
Under the AGOA agreement, which was effective in 2000 under the administration of former president Bill Clinton, thousands of African products can benefit from reduced import taxes, subject to conditions being met regarding human rights, good governance and worker protection, as well as not applying a customs ban on American products on their territory.
"Our administration is deeply concerned by the unconstitutional changes in government in Burkina Faso," said US Trade Representative (USTR) Katherine Tai in a statement.
She added that Washington "urges Burkina Faso to take necessary actions to meet the statutory criteria and return to elective democracy."
As of 2020, 38 countries were eligible for AGOA benefits, according to the USTR website.
The agreement was modernized in 2015 by Congress, which also extended the program until 2025.
Statement From Ambassador Katherine Tai on the African Growth and Opportunity Act Eligibility Review
Office of the United States Trade Representative
Statement
Ambassador, Katherine Tai
Washington, D.C.
November 2, 2022
Ambassador Katherine Tai today released the following statement on the African Growth and Opportunity Act (AGOA):
“Today, President Biden announced his intent to terminate Burkina Faso from the AGOA trade preference program as of January 1, 2023. Our Administration is deeply concerned by the unconstitutional changes in government in Burkina Faso. The country is set to be removed from this program for failing to meet the requirements of AGOA. The United States urges Burkina Faso to take necessary actions to meet the statutory criteria and return to elective democracy. I will provide Burkina Faso with clear benchmarks for a pathway toward reinstatement and our Administration will work with them to achieve that objective.”
View related news articles
A proclamation to take certain actions under AGOA and for other purposes [Burkina Faso]
(1) In Proclamation 7853 of December 10, 2004, the President designated Burkina Faso as a beneficiary sub-Saharan African country for purposes of section 506A(a)(1) of the Trade Act of 1974, as amended (the “Trade Act”), as added by section 111(a) of the African Growth and Opportunity Act (the “AGOA”) (title I of Public Law 106-200, 114 Stat. 251, 257-58 (19 U.S.C. 2466a(a)(1))). (2) Section 506A(a)(3) of the Trade Act (19 U.S.C....
23 December 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
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...
30 December 2021
US President terminates AGOA preferences for Ethiopia, Mali and Guinea
U.S. President Joe Biden announced yesterday that he has “determined that Ethiopia, Guinea, and Mali do not meet” the AGOA requirements described in section 506A(a)(1) and has proceeded to “terminate the designation of the three countries as beneficiary sub-Saharan African countries …effective January 1, 2022.” On November 21, the Ethiopian Ministry of Foreign Affairs lamented the impending decision by the U.S. to remove Ethiopia...
24 December 2021
Senator Van Hollen, Representative Bass urge Biden Administration to reconsider Ethiopia's suspension from AGOA
Today, U.S. Senator Chris Van Hollen (D-Md.) and Congresswoman Karen Bass (D-Calif.) urged President Biden to reconsider his Administration’s November 2, 2021 decision to terminate Ethiopia’s designation as a beneficiary country under the African Growth and Opportunity Act (AGOA) at the end of this year. As the lawmakers note in their letter (download a copy at the link alongside), this decision will hurt the nation’s most vulnerable...
23 December 2021
US terminates duty-free trade access to Ethiopia over conflict
Ethiopia’s duty-free export access to the U.S. has been revoked by President Joe Biden due to its failure to meet the requirements, according to the White House. The action comes after 13 months of civil war in the country. Ethiopia is disqualified from participation in the Africa Growth and Opportunity Act due to gross violations of human rights, the U.S. Trade Representative said when it notified Ethiopia in November....
23 December 2021
'Ethiopia approaches civil war - but Team Biden should avoid harming AGOA'
As day turns to night in Ethiopia, International crisis negotiators are feverishly working to avoid an all-out civil war. America’s top diplomat, Secretary of State Antony J. Blinken is in nearby Kenya trying to help resolve the crisis. America utilized several pressure tactics to try to bring this outbreak to a resolution but none have worked so far. The latest is to give Ethiopia a 60-day notice of withdrawal from the African Growth...
17 November 2021
Why US is suspending Ethiopia, Mali, Guinea trom AGOA 'trade deal'
In response to human rights violations, the United States announced this week that it plans to suspend Ethiopia, Mali and Guinea from duty-free access to American markets as of January 1, 2022.U.S. President Joe Biden said in a statement to Congress, released Tuesday (see alongside), that these nations were no longer in compliance with the eligibility requirements for the African Growth and Opportunity Act (AGOA). He cited various...
09 November 2021
Statement from Ambassador Tai on the AGOA eligibility review
WASHINGTON – Ambassador Katherine Tai today released the following statement on the African Growth and Opportunity Act (AGOA): “Today, President Biden announced three countries will be terminated from the AGOA trade preference program as of January 1, 2022, absent urgent action to meet statutory eligibility criteria. Our Administration is deeply concerned by the unconstitutional change in governments in both Guinea and Mali, and by...
02 November 2021