WASHINGTON, January 1, Reuters - The United States has cut Ethiopia, Mali and Guinea from access to a duty-free trade program, following President Joe Biden's threat to do so over alleged human rights violations and recent coups.
The United States has dissolved Ethiopia, Mali and Guinea from the AGOA trade preference program because of actions taken by each of their governments in violation of the AGOA Statute, the U.S. Trade Representative's office said in a statement.
In November, Biden said that Ethiopia had a website called www.reuters. According to the article US-Ethiopia conflict-trade idCAKBN 2 HN 1 QQ would be cut off from the duty-free trading regime provided under the U.S. African Growth and Opportunity Act AGOA due to alleged human rights violations in the Tigray region, while Mali and Guinea were targeted due to recent coups.
The suspension of benefits threatens Ethiopia's textile industry, which supplies global fashion brands, and the country's nascent hopes of becoming a light manufacturing hub. It adds pressure on an economy that is reeling from the conflict, the coronaviruses and high inflation.
The Biden-Harris Administration is deeply concerned by the unconstitutional change in governments in both Guinea and Mali, and the gross violations of internationally recognized human rights perpetrated by the Government of Ethiopia and other parties amid the widening conflict in northern Ethiopia, according to the USTR statement.
The AGOA trade legislation provides sub-Saharan African nations with duty-free access to the United States if they meet certain eligibility requirements, such as removing barriers to U.S. trade and investment, and making progress toward political pluralism.
Each country has clear benchmarks for a pathway to reinstatement, and the Administration will work with their governments to achieve that goal, it added.
The Washington embassies of the three African countries did not respond to requests for comment.
Ethiopia's Trade Ministry said it was extremely disappointed by Washington's announcement, saying the move would reverse economic gains and unfairly affect women and children.