Uganda Loses Agoa Benefits Due to Human Rights Concerns
Uganda, along with the Central African Republic, Gabon, and Niger, has been removed from the African Growth and Opportunity Act (Agoa) by the United States. This decision, effective January 1, 2024, will significantly impact Uganda's economy, which has relied heavily on Agoa since its inception in 2000.
The primary reason for Uganda's removal from Agoa is its controversial Anti-Homosexuality Act, which imposes harsh punishments, including life imprisonment and even the death penalty, for same-sex conduct. In October 2022, US President Joe Biden cited "gross violations of internationally recognized human rights" as the basis for this decision.
Agoa provides duty-free access to the US market for over 1,800 products from eligible sub-Saharan African countries. Uganda has primarily exported agricultural goods and textiles to the US under this agreement. Over 80% of Uganda's exports to the US come from the agricultural sector, which employs approximately 72% of the workforce.
The loss of Agoa benefits could lead to significant economic consequences for Uganda. It could result in job losses, reduced economic growth, and a decline in foreign exchange earnings. In the 12 months leading up to June 2023, Uganda's exports to the US under Agoa amounted to $8.2 million, representing approximately 11.5% of its total exports to the US during that period.
The US decision to remove Uganda from Agoa highlights the importance of respecting human rights and adhering to international norms. It also underscores the potential economic consequences of disregarding these principles.
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