US announces removal of Ethiopia from the African Growth and Opportunity Act in November 2021.

Context

In November 2021, United States President Joseph Biden issued a letter to the US Congress in which he announced his intention to remove Ethiopia and two other African states (Mali and Guinea) from the US’ African Growth and Opportunity Act (AGOA) provisions entitling Sub-Saharan African states to duty-free access to the US domestic market. This decision came into force in January 2022.

President Biden’s letter stated that the removal of Ethiopia from the AGOA was motivated by “gross violations of internationally recognised human rights”. The context of this mechanism is ongoing conflict and alleged human rights abuses in Ethiopia’s northern Tigray region.  

Impact

Ethiopia’s garment industry was reportedly damaged through this mechanism. According to reporting, in 2019 US$239 million of garments were exported to the US through AGOA.In 2024 the head of the country’s Hawassa Industrial Park Investors Association, Hibret Lemma, told press that the end of AGOA access damaged the garment industry, and that attempts at diversification in response have been slow: “[w]e’re back to reality now so we’ve been looking at the Europe market for about a year but it’s still in the early stages.” The same report notes that employment at Hawassa Industrial Park – the country’s largest garment factory park – dropped from around 4,500 staff at its peak to around 3,000 since the end of AGOA membership.

Responses  

i) Ethiopian government and industry responses.

A spokesperson for the Ethiopian government, Legesse Tulu, reportedly responded by Tweeting that the move would result in one million Ethiopian jobs being lost. Ethiopia’s Chief Trade Negotiator Mamo Meheretu told press that work was being done to address alleged human rights abuses, stating “[w]e have allowed the UN Commission for Human Rights to conduct investigations with the Ethiopian Human Rights Commission” – while also noting the human suffering likely to be caused by the removal of AGOA access, saying “The withdrawal will affect the very same people the U.S. is trying to protect… We have close to 85,000 employees in the [main] iindustrial park and 80% of them are women living with less than two dollars a day.”

(ii) US government and industry responses

The US government made clear from the outset that a pathway exists for the readmittance of Ethiopia to AGOA, with the US Trade Representative, Katherine Tai, saying in November 2021 that “I will provide [Ethiopia] with clear benchmarks for a pathway toward reinstatement and our Administration will work with them to achieve that objective.” In December 2021, the chairs of subcommittees relating to Africa of the House and Senate committees on foreign relations – Senator Chris Van Hollen and Representative Karen Bass – wrote to President Biden to reverse his decision and allow Ethiopia more time to come into compliance with the AGOA act. Their letter states that “[l]oss of AGOA eligibility will reverse economic gains that have been hard won by the people of Ethiopia, American investors, and exacerbate the circumstances of the most vulnerable sectors of the population, including women and children.” Notably, they also write that “this decision invites China to strengthen its economic foothold in the Horn of Africa.”  

Status

As of July 2024, there are currently 32 Sub-Saharan African states eligible for AGOA, out of a total of 49 possible beneficiaries. Ethiopia has not yet been readmitted.

In July 2024, US State Department Deputy Assistant Secretary for African Affairs, Joy Basu, told press that the US government has had “an ongoing dialogue with the Ethiopian Government.  We are in the process of reviewing any actions that have been taken.  And once those actions are taken by the government when it comes to the democracy, human rights, and governance aspects of the legislation, we hope that Ethiopia will be eligible again.” In August 2024 reports quoted US officials as continuing to suggest that the US would be willing to reinstate Ethiopia’s inclusion in the AGOA.  

Reference list

AGOA. 2021. “Message to the Congress on the termination of the designation of Ethiopia, Mali, Guinea.” AGOA. November 2. Available at: https://agoa.info/ downloads/legal/15924.html

AGOA. 2024. “Two years on: How Ethiopia’s apparel sector is combatting AGOA uncertainty.” AGOA. April 2. Available at: https://agoa.info/news/article/16444-two-years-on-how-ethiopia-s-apparel-sector-is-combatting-agoa-uncertainty.html

Al Jazeera. 2020. “Netherlands recalls defective masks imported from China.” Al Jazeera. March 29. Available at: https://www.aljazeera.com/news/2020/ 3/29/netherlands-recalls-defective-masks-imported-from-china

Gebre, S. and Tadesse, F. 2021. “Ethiopia pushes to keep AGOA access amid US rights concerns.” AGOA, October 8. Available at: https://agoa.info/news/article/15897-ethiopia-pushes-to-keep-agoa-access-amid-u-s-rights-concerns.html

Lewis, S., Chiacu, D., Fick, M., Miriri, D., Mersie, A., and Houreld, K. 2021. “U.S. to end duty-free access for Ethiopia, Mali, Guinea.” Reuters. November 3. Available at: https://www.reuters.com/world/africa/us-end-duty-free-access-ethiopia-mali-guinea-2021-11-02/

Sahlu, S. 2024. “Washington considering Ethiopia’s AGOA reinstatement: US gov’t officials.” The Reporter. August 3. Available at: https://www.thereporterethiopia.com/ 41344/

US Department of State. 2024. “Digital Press Briefing on Outcomes of the AGOA Forum 2024.” US Department of State. July 29. Available at: https://www.state.gov/digital-press-briefing-on-outcomes-of-the-agoa-forum-2024/

US Embassy in Ethiopia. 2021. “Statement From Ambassador Katherine Tai on the African Growth and Opportunity Act Eligibility Review.” US Embassy in Ethiopia. November 2. Available at: https://et.usembassy.gov/statement-from-ambassador-katherine-tai-on-the-african-growth-and-opportunity-act-eligibility-review/

Van Hollen, C. and Bass, K. 2021. “Joint Letter to the President”. December 21. Available at: https://www.vanhollen.senate.gov/imo/media/doc/2021-12-21%20Joint%20Letter%20to%20President,%20Ethiopia%20AGOA%20Suspension1.pdf

VOA News. 2021. “US Suspends Ethiopia’s Duty-Free Access Over Tigray Violations.” VOA News. November 2. Available at: https://www.voanews.com/a/us-suspends-ethiopia-s-duty-free-access-over-tigray-violations/6296829.html

White House. 2021. “A Message to the Congress on the Termination of the Designation of the Federal Democratic Republic of Ethiopia (Ethiopia), the Republic of Guinea (Guinea), and the Republic of Mali (Mali) as beneficiary sub-Saharan African countries under the African Growth and Opportunity Act (AGOA).” White House. November 2. Available at: https://www.whitehouse.gov/briefing-room/statements-releases/2021/11/02/a-message-to-the-congress-on-the-termination-of-the-designation-of-the-federal-democratic-republic-of-ethiopia-ethiopia-the-republic-of-guinea-guinea-and-the-republic-of-mali-mali-as-beneficia/

Wong, L. 2024. “African Growth and Opportunity Act (AGOA).” Congressional Research Service. July 17. Available at: https://crsreports.congress.gov/product/pdf/IF/IF10149