In a recent announcement, US President Joe Biden has declared the expulsion of Uganda, Gabon, Niger, and the Central African Republic from the African Growth and Opportunity Act (Agoa) trade programme.
This move is a result of what President Biden described as “gross violations of human rights” and the lack of progress towards democratic governance in the respective countries.
Niger and Gabon, currently under military rule following coups earlier this year, were deemed ineligible for Agoa due to their failure to establish or sustain political pluralism and the rule of law. Meanwhile, the removal of the Central African Republic and Uganda from the programme was attributed to their governments’ egregious violations of internationally recognized human rights.
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Notably, the Central African Republic, with limited US exports of $881,000 in 2022, might face the least severe consequences. However, its substantial trade deficit with the US, with imports totaling $23 million in the same period, could exacerbate the economic strain.
Uganda, in particular, recorded exports of $174 million to the US last year, but the passing of a contentious anti-homosexuality law has led to the suspension of textile imports by some American companies. Similarly, Gabon and Niger saw US exports amounting to $220 million and $73 million, respectively, during the same period.
Back in May, the US government signaled its deliberation to potentially exclude Uganda from Agoa and impose sanctions on the nation. This consideration came following Uganda’s enactment of a contentious anti-homosexuality law, which has drawn widespread global condemnation for its provision of a death penalty for individuals involved in specific same-sex activities.
“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,” President Biden said on Monday, in a letter addressed to the speaker of the US House of Representatives.
This decision, set to take effect at the beginning of next year, is likely to significantly impact the economies of the affected nations, given Agoa’s crucial role in promoting exports, economic growth, and job creation.
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The announcement precedes the 20th Agoa forum, scheduled to be hosted by South Africa later this week.
As of now, there has been no response from the four countries regarding the recent announcement. Notably, this announcement arrives just ahead of South Africa’s hosting of the 20th Agoa forum, commencing this Thursday. The expulsion of these nations from Agoa is scheduled to take effect at the beginning of next year, potentially impacting their economies. Agoa has been widely acknowledged for its role in fostering exports, stimulating economic growth, and facilitating job creation among participating countries.
Among the affected nations, the Central African Republic (CAR) is expected to experience the least severe repercussions from its expulsion from Agoa. This assessment is supported by US government data, which indicates that the country’s US exports amounted to $881,000 (£722,300) in 2022. In contrast, the CAR imported goods worth $23 million from the US during the same period, contributing to a significant trade deficit between the two countries.
Furthermore, according to US data, Uganda exported goods worth $174 million to the US last year, while Gabon and Niger recorded US exports of $220 million and $73 million, respectively, during the same period. Just last month, Ugandan President Yoweri Museveni revealed that several American companies had ceased importing textiles, falling under the Agoa trade deal, from Uganda due to the implementation of the anti-homosexuality law.
“The homosexuals in the US are interfering with our export of textiles. Some of the orders have been cancelled there,” Mr Museveni was quoted as saying by the privately owned Daily Monitor newspaper.
In August, President Museveni implemented a ban on the importation of second-hand clothes, a move believed to be targeting the US, a significant provider of used garments to Uganda and other African nations.
The potential exclusion of Niger and Gabon from Agoa represents the most recent action taken by the US government in response to the leadership of the two countries under military juntas.
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Last week, the US State Department declared the suspension of most foreign aid to Gabon and indicated that the aid would only resume if Gabon’s transitional government establishes democratic governance.
Similarly, in August, US Secretary of State Antony Blinken unveiled a similar measure targeting Niger, stating that the US is temporarily halting specific foreign assistance programs that benefit the government of Niger.
Previously, Burkina Faso, Mali, and Guinea were all expelled from Agoa following military coups in their respective countries.
