U.S. President Joe Biden declared on Monday the termination of Gabon, Niger, Uganda, and the Central African Republic’s participation in the African Growth and Opportunity Act (AGOA) trade program. President Biden cited “gross violations” of internationally recognised human rights in the Central African Republic and Uganda as the primary reason for this decision. Additionally, he pointed out the failure of Niger and Gabon to establish or make consistent progress toward political pluralism and the rule of law.
In a letter addressed to the speaker of the U.S. House of Representatives, Biden expressed disappointment, stating that despite intensive engagement, the concerned countries had not adequately addressed the United States’ concerns about their non-compliance with the AGOA eligibility criteria. This decision, effective from January 1, 2024, marks a significant shift in U.S. trade relations with these nations.
AGOA, initiated in 2000, provides duty-free access to the U.S. market for exports from qualifying African countries. While the program is set to expire in September 2025, discussions are underway regarding its extension and duration. African governments and industry groups are advocating for an early 10-year extension without alterations to instil confidence among businesses and potential investors concerned about AGOA’s future. The move by the United States raises critical questions about the future of trade relations between the U.S. and these African nations, urging a re-evaluation of diplomatic engagements and trade policies moving forward.