US Suspends AGOA Duty-Free Access to Four African Countries; African Union Calls for 10-Year Program Extension

US suspends AGOA duty-free access to four African countries due to governance and rights failings; African Union seeks extended program to foster long-term investment and counter foreign influence.

• The US has suspended the AGOA duty-free access for four African countries — Gabon, Niger, Uganda, and the Central African Republic — due to coups, human rights violations, and other governance issues. Mauritania was reinstated after improvements on workers' rights.
• The impact of the suspension varies per country. For countries like Niger and the Central African Republic, the suspension has negligible economic impact due to their minimal exports under AGOA. However, countries like Uganda will face more severe consequences.
• Ethiopia's previous suspension has had a significant impact on its clothing industry, shedding light on the potential economic consequences of the policy for countries with major exports under AGOA.
• The African Union is calling for a 10 to 20-year extension of the AGOA program, which is set to expire in 2025. They emphasize this duration is crucial for the certainty and security of the investment community.
• Changes to the AGOA program are being considered in Washington, including potential modifications to promote reciprocality. However, trade official Albert Muchanga stated that US exports will not be granted tariff-free access to the new African Continental Free Trade Area.

4 Articles

United States Department of State The Economist Reuters Semafor