ALBAWABA – United States (US) President Joe Biden said on Monday that he intends to end the participation of Niger, Uganda, Gabon and the Central African Republic in the African Growth and Opportunity Act AGOA trade program.
Human rights violations in Gabon and Central African Republic, Biden explained, have rendered these countries ineligible to benefit from the program.
Whereas the failure to establish, move towards and protect political pluralism and the rule of law in Niger and Uganda means that they too do not meet the AGOA eligibility criteria, he added.
The US chief will continue to assess whether the said countries meet the program's eligibility requirements. But he intends to terminate the designation of these countries as beneficiaries under the AGOA, as of January 1, 2024, Reuters reported.
Launched in 2000, the AGOA trade program grants exports from qualifying countries duty-free access to the US market.
The AGOA trade program provides duty-free access for over 1,800 products from Africa - Shutterstock
It is set to expire in September 2025, but discussions are already underway over whether to extend it and for how long, the Canada-based news agency confirmed.
African governments and industry groups are pushing for an early 10-year extension without changes in order to reassure business and new investors who might have concerns over AGOA's future.
The AGOA trade program provides duty-free access for over 1,800 products, in addition to more than 5,000 products already eligible for duty-free access under the Generalized System of Preferences (GSP) program.
According to the Office of the United States Trade Representative, 36 countries are eligible for AGOA benefits in 2022.
AGOA (including GSP) imports in 2021 totalled $6.7 billion, up 59.5 percent from $4.2 billion in 2020, with the top five beneficiaries in 2021 being South Africa, Nigeria, Kenya, Ghana and Angola.
Top AGOA imports in 2021 were mineral fuels, motor vehicles and parts, woven apparel, knit apparel, ferroalloys and macadamia nuts.
