US President Joe Biden terminated Uganda’s participation in the African Growth and Opportunity Act (Agoa), impacting nearly Shs40 billion in export revenue for the East African country. Agoa, a US trade preference act established on May 18, 2000, grants duty-free access to the US market for over 6,000 products from beneficiary countries.
A statement from the office of the trade representative in December 2023 confirmed the termination, citing Uganda, along with the Central African Republic, Gabon, and Niger, as countries not meeting the requirements outlined in section 506A (a)(1) of the Trade Act. The termination became effective on January 1, 2024.
Uganda, which experienced export growth from Shs4 billion in 2019 to Shs39 billion in 2022, now faces the challenge of finding alternatives to compensate for the lost revenue. Major exports impacted include textiles and agricultural products.
Despite the potential negative repercussions, including job losses in labor-intensive industries like textiles, Uganda’s trade ministry remained optimistic about recovering from the loss by exploring other markets.
The termination from Agoa follows several other sanctions, such as travel restrictions on top officials and threats of aid cuts, imposed on Uganda after the adoption of the Anti-Homosexuality Act in 2023. The US criticized the law as retrogressive.
In his Christmas message to Ugandans, President Museveni expressed confidence in Uganda’s ability to stand independently, despite growing tensions with key Western allies. He emphasized the strength of Ugandan communities and urged those exerting pressure to reconsider, emphasizing Uganda’s economic growth and low inflation.
