US removes Ethiopia, Mali and Guinea from trade pact

Three African countries terminated from the African Growth and Opportunity Act and will lose the chance to benefit from reduced import taxes.

The AGOA legislation aims to assist the economies of sub-Saharan Africa and to improve economic relations between the United States and the region.
AP

The AGOA legislation aims to assist the economies of sub-Saharan Africa and to improve economic relations between the United States and the region.

President Joe Biden's administration has announced that Ethiopia, Mali and Guinea have been excluded from a US-Africa trade agreement, saying that the actions of the three governments violated its principles.

"The United States today terminated Ethiopia, Mali and Guinea from the AGOA trade preference programme due to actions taken by each of their governments in violation of the AGOA Statute," the US Trade Representative (USTR) said in a statement on Saturday.

The African Growth and Opportunity Act (AGOA) was put in place in 2000 under the administration of former president Bill Clinton to facilitate and regulate trade between the United States and Africa.

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But the United States is "deeply concerned by the unconstitutional change in governments in both Guinea and Mali," the statement said.

It also voiced concern about "gross violations of internationally recognised human rights being perpetrated by the government of Ethiopia and other parties amid the widening conflict in northern Ethiopia."

"Each country has clear benchmarks for a pathway toward reinstatement and the administration will work with their governments to achieve that objective," the USTR said.

Under the AGOA agreement, thousands of African products can benefit from reduced import taxes, subject to conditions being met regarding human rights, good governance and worker protection, as well as not applying a customs ban on American products on their territory.

By 2020, 38 countries were eligible for AGOA, according to the USTR website.

The agreement was modernised in 2015 by the US Congress, which also extended the programme until 2025.

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