News Washington considering Ethiopia’s AGOA reinstatement: US gov’t officials
By Sisay Sahlu
August 3, 2024
Ethiopia’s re-eligibility for the African Growth and Opportunity Act (AGOA) is dependent on the Ethiopian government’s actions, US officials said this week.
The Biden administration moved to suspend Ethiopia from the preferential trade regime in late 2021 in light of allegations of human rights violations committed during the two-year northern war. As a result, exporters have been unable to benefit from the tariff-free trade opportunities they had enjoyed under AGOA since its establishment in 2000.
Washington D.C. hosted senior officials from the US government and 38 AGOA-eligible sub-Saharan African countries to discuss economic cooperation and trade during this year’s AGOA Forum held in the final week of July.
During a more recent digital press briefing, US Deputy Assistant Secretary for African Affairs Joy Basu and Assistant Trade Representative for Africa Constance Hamilton responded to queries from The Reporter about Ethiopia’s potential reinstatement to the trade program by saying that the decision rests in the hands of Ethiopian officials.
Basu noted the US government has taken part in extensive discussions with Ethiopian authorities about the necessary steps for regaining AGOA benefits, particularly in supporting civil society and addressing civil unrest in regions outside Addis Ababa.
“We’ve had an ongoing dialogue with the Ethiopian government. We are reviewing any actions taken and hope Ethiopia will be eligible again once the government addresses democracy, human rights, and governance issues,” Basu said.
The US government conducts an annual review of each beneficiary country to assess compliance with AGOA’s clear legislative requirements.
“We don’t make countries guess about what they need to do to get back into AGOA. We’ve been very specific with the Ethiopian government about the required actions,” said Hamilton.
She indicated that a review is underway and, following evaluations, President Joe Biden is set to announce a decision on Ethiopia’s AGOA status before the end of the year.
Nebiyu Tedla (Amb.), spokesperson for the Ministry of Foreign Affairs, also addressed questions about AGOA during his weekly media briefing. He acknowledged the better market alternatives available to Ethiopian manufacturers but noted that Ethiopia’s removal from AGOA does not preclude other areas of cooperation between the US and Ethiopia. Nebiyu expressed hope that Washington would reverse its decision and allow Ethiopia to rejoin AGOA.
As Ethiopia awaits the outcome of the review, the government’s commitment to addressing the specified issues will be crucial in determining its AGOA eligibility and future trade relations with the United States.
The outcome is especially important to Ethiopia’s textile manufacturing industry, the foremost AGOA beneficiary in the country. Close to half of USD 530 million in Ethiopia’s exports to the US in 2020, primarily textiles and leather products, were duty-free under AGOA, according to government data.