Factory workers at Hawassa Industrial Park. Photo: Ethiopia Industrial Park Development Corporation
Addis Abeba – Ethiopia’s bid to rejoin the African Growth and Opportunity Act (AGOA) has once again fell short as the Office of the United States Trade Representative (USTR) maintained Ethiopia in the list of suspended countries in its latest announcement on 21 December.
The announcement confirmed that the list of African countries eligible for AGOA will remain unchanged for the upcoming fiscal year, preserving the agreement’s benefits for 32 eligible African countries.
Despite discussions by American trade officials in July to explore potential amendments to AGOA, the latest decision leaves Ethiopia’s suspension intact. Initially excluded due to the two years brutal war in the Tigray region and the rampant human rights violations that ensued, Ethiopia’s repeated efforts to regain AGOA eligibility have yet to succeed, marking another setback in its bid to rejoin the trade program.
Ethiopia’s latest efforts to rejoin the program when President Taye (then Foreign Minister) called for the restoration of Ethiopia’s status, urging the Biden administration to reconsider its decision.
President Joe Biden signed an executive order in November 2021 removing Ethiopia from AGOA following the escalation of the war, which started a year earlier in November 2020, and witnessed “gross violations of internationally recognized human rights.”
The decision had led to several foreign companies operating in Ethiopia’s industrial parks closing shops and leaving Ethiopia, as they had primarily targeted Ethiopia due to its eligibility for AGOA.
Ethiopia lamented the decision as “misguided” and said it “fails to take into account the commitment of the Government of the United States to value the wellbeing of ordinary citizens.” Ethiopia also argued the decision affects “the livelihoods of more than 200.000 low-income families mostly, women who have got nothing to do with the conflict.” In the announcement, Sam Michel, USTR Spokesperson, said that “based on the results of the annual African Growth and Opportunity Act (AGOA) eligibility review, which included a public hearing in July that was chaired by the Office of the United States Trade Representative, President Biden has determined to maintain AGOA benefits for each country currently eligible under the program. Therefore, the list of eligible and ineligible countries will remain unchanged for 2025.” AS
