US has officially dropped Uganda and three other African countries as beneficiaries of the African Growth and Opportunity Act (AGOA) with immediate effect.
This follows President Joe Biden’s decree that stated he had “determined” that the four countries “do not meet the requirements” necessary to allow them to continue benefiting from the trade deal.
This formally ends the ability of Uganda, Central African Republic, Gabon and Niger to export certain commodities to the US duty-free.
A statement delisting Uganda from AGOA says “the country has engaged in gross violations of internationally recognized human rights.”
In May 2023, President Museveni assented to the extreme anti-gay law passed by the Ugandan lawmakers, which introduced serious repercussions, including life imprisonment or death, for same-sex relations in the country.
Experts now warn that expulsion from AGOA could destroy thousands of jobs, cause a foreign-exchange earnings drought, and low utilization of raw materials locally.
Over 80% of Uganda’s exports under AGOA were from the agricultural sector, which employs about 72% of the country’s workforce, indicating that the expulsion could have a significant hit on jobs.