U.S President Joseph Biden has proposed the removal of four African countries as beneficiaries of the African Growth and Opportunity Act (AGOA).
According to Biden, the four African states to be axed from AGOA are the Central African Republic (CAR), the Gabonese Republic (Gabon), Niger, and the Republic of Uganda.
In a letter dated Monday, October 30, President Biden informed the House and President of the Senate of his intention to terminate the designation of the four countries as members of AGOA.
“In accordance with section 506A(a)(3)(B) of the Trade Act of 1974, as amended (19 U.S.C. 2466a(a)(3)(B)), I am providing advance notification of my intent to terminate the designation of the CAR, Gabon, Niger, and the Republic of Uganda (Uganda) as beneficiary sub-Saharan African countries under the AGOA,” said Biden.
Further, the U.S president said he is making the decision because the four nations do not meet the eligibility requirements of section 104 of the AGOA.
“I will continue to assess whether the Central African Republic, Gabon, Niger, and Uganda meet the AGOA eligibility requirements,” he said.
Biden Argument
He explained that the CAR government has engaged in gross violations of internationally recognized human rights.
Moreover, President Biden accused CAR government of not making continual progress toward establishing, the protection of internationally recognized worker rights, the rule of law, and political pluralism.
Also, he said Niger and the government of Gabon are not making continual progress toward establishing, the protection of political pluralism and the rule of law.
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Finally, Biden said the government of Uganda has engaged in gross violations of internationally recognized human rights.
“Accordingly, I intend to terminate the designation of these countries as beneficiary sub-Saharan African countries under the AGOA, effective January 1, 2024,” stated Biden.
In addition, the president said the U.S government has engaged with the government of the four countries to no success.
“Despite intensive engagement between the United States and the Central African Republic, Gabon, Niger, and Uganda, these countries have failed to address United States concerns about their non-compliance with the AGOA eligibility criteria,” argued Biden.
About AGOA
AGOA was enacted in 2000 to be the centre of U.S. economic policy and commercial engagement with Africa.
It provides eligible sub-Saharan African countries with duty-free access to the U.S. market for over 1,800 products.
Additionally, more than 5,000 products are eligible for duty-free access under the Generalized System of Preferences program.
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To meet AGOA’s rigorous eligibility requirements, countries must establish or make continual progress toward establishing a market-based economy, the rule of law, political pluralism, and the right to due process.
In addition, countries must eliminate barriers to U.S. trade and investment, enact policies to reduce poverty, combat corruption, and protect human rights.
By providing new market opportunities, AGOA has helped bolster economic growth, promoted economic and political reform, and improved U.S. economic relations in the region.
As per 2022, 36 countries were eligible for AGOA benefits.
In 2015, Congress passed legislation modernizing and extending the program to 2025.