“Accordingly, I have decided to terminate the designations of the Central African Republic, Gabon, Niger, and Uganda as beneficiary sub-Saharan African countries for purposes of section 506A of the Trade Act, effective January 1, 2024,” US President, Joe Biden said.
In a decree dated December 29, President Biden cited that the four countries do not meet the requirements for The African Growth and Opportunity Act Agoa benefits. The decision follows Biden’s October 2023 statement expressing his intention to delist these nations due to Uganda’s alleged “gross violations of internationally recognized human rights.”
Uganda’s expulsion is linked to President Yoweri Museveni’s assent to an anti-gay law that introduced severe penalties, including life imprisonment or death, for same-sex relations. This action has raised concerns about human rights violations.
Uganda’s removal from Agoa is predicted to result in the loss of thousands of jobs, a decline in foreign exchange earnings, and reduced utilization of local raw materials. The agricultural sector, which employs about 72 percent of the country’s workforce, could be significantly affected.
Uganda, historically a significant Agoa beneficiary, exported commodities worth $8.2 million to the US under Agoa in the 12 months to June 2023. This accounted for about 11.5 percent of its total exports to the US during the same period, totaling $70.7 million.
Uganda now joins South Sudan, Somalia, and Burundi in the region, unable to benefit from Agoa. The expulsion is part of a broader removal of countries from the Agoa list, including Ethiopia, Guinea, Mali, Gabon, Cameroon, Burkina Faso, The Gambia, Central African Republic, Zimbabwe, and Sudan.
Agoa, set to expire in December 2025, may be extended, but Uganda’s readmission would depend on its commitment to meeting specified criteria, possibly involving a reconsideration of its anti-gay law. Mauritania, previously suspended, serves as an example of a country returning to Agoa compliance.
Agoa has been legislated in 2000 to allow several countries to export a number of commodities to the US duty-free.