Middle East

US removes Ethiopia, Mali and Guinea from trade agreement

The three African countries will end the African Growth Opportunity Act and lose the opportunity to benefit from import tax cuts.

The AGOA Act aims to support the economy of sub-Saharan Africa and improve economic relations between the United States and the region. (AP)

President Joe Biden’s administration has announced that Ethiopia, Mali and Guinea have been excluded from the US-Africa trade agreement, stating that the actions of the three governments violate that principle.

“Today, the United States has terminated Ethiopia, Mali and Guinea from the AGOA trade preference program due to actions taken by governments in violation of AGOA law,” the United States Trade Representative (USTR) said in a statement on Saturday. ..

The African Growth Opportunity Act (AGOA) came into force in 2000 under the control of former President Bill Clinton to promote and regulate trade between the United States and Africa.

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However, the United States is “deeply concerned about unconstitutional changes in the government in both Guinea and Mali,” the statement said.

He also expressed concern that “in the midst of growing conflict in northern Ethiopia, the Ethiopian government and other political parties are committing serious violations of internationally recognized human rights.”

“Each country has a clear benchmark on the path to reinstatement, and governments work with governments to achieve that goal,” USTR said.

Thousands of African products are imported under the AGOA Agreement, provided that conditions for human rights, good governance, worker protection are met, and that no tax bans are applied to American products in their territory. You can benefit from tax cuts.

By 2020, 38 countries were covered by AGOA, according to the USTR website.

The agreement was modernized by the US Congress in 2015, and the US Congress also extended the program to 2025.

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Source: TRT World and distributors

https://www.trtworld.com/americas/us-removes-ethiopia-mali-and-guinea-from-trade-pact-53219?utm_source=other&utm_medium=rss US removes Ethiopia, Mali and Guinea from trade agreement

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