Ethiopia Remains Out of AGOA; Gabon Now Out, Mauritania Back In
Mauritania will participate in the African Growth and Opportunity Act program and receive benefits next year, since it has made progress in ending hereditary slavery, but Ethiopia, which was expelled from participation due to human rights violations during a rebel uprising, won't be allowed back in.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The top Democrat on the House Ways and Means Committee said he opposes Mauritania's reinstatement, saying it "flies in the face of a worker-centric trade agenda." Rep. Richard Neal, D-Mass., said hereditary slavery practices in Mauritania continue.
The White House also announced Oct. 31 that Gabon, Niger, Uganda and the Central African Republic will be barred from AGOA participation next year. According to Agoa Info, Uganda only exported $12 million worth of goods covered by AGOA last year; Gabon exported $125.6 million worth of goods. The top three beneficiaries last year were South Africa, at $3.6 billion; Nigeria, at $3.5 billion; and Kenya, at $614.6 million.
Before Ethiopia was removed from AGOA participation, it had $255 million in textile and apparel exports to the U.S.
AGOA is attractive for apparel manufacturers because garments face higher than average tariffs, garments are generally not covered by the Generalized System of Preferences benefits program, and garment manufacturing is an early step in industrialization in developing countries. Moreover, AGOA allows the least-developed countries in the program to use Chinese fabrics and still qualify for the benefit.
The Central African Republic and Uganda were expelled for violating human rights -- members of Congress and advocates had railed against Uganda's new anti-homosexuality law. Gabon and Niger had coups this year, and their participation was terminated for that reason.
“The United States urges these governments to take necessary actions to meet those criteria so that we can resume our valued trading partnerships. I will provide each of these countries with clear benchmarks for a pathway toward reinstatement, and our Administration will work with them to achieve that objective," U.S. Trade Representative Katherine Tai said in a statement after the announcement.
The changes will take effect Jan. 1.