Ethiopia Excluded from AGOA for Third Consecutive Year











The United States has announced that Ethiopia will remain ineligible for the African Growth and Opportunity Act (AGOA) benefits in 2025, marking the third consecutive year the country has been excluded from the program. The decision was confirmed in a statement released on December 21, 2024, by USTR Spokesperson Sam Michel, following the annual AGOA eligibility review chaired by the Office of the United States Trade Representative.

AGOA, established in 2000, provides Sub-Saharan African countries duty-free access to the U.S. market for a wide range of products. The program is designed to promote economic growth and strengthen U.S.-Africa trade relations. Eligibility for AGOA is reviewed annually, with countries required to meet specific criteria, including adherence to internationally recognized human rights, governance standards, and economic reforms.

According to the statement, “President Biden has determined to maintain AGOA benefits for each country currently eligible under the program. Therefore, the list of eligible and ineligible countries will remain unchanged for 2025.” Ethiopia, which has been excluded from AGOA since 2022, is listed among the ineligible countries for the upcoming year.

Ethiopia’s exclusion from AGOA has had a significant impact on its export-oriented industries, particularly the textile and apparel sector. Prior to its removal from the program, Ethiopia was one of the key AGOA beneficiaries, with its industrial parks, such as the one in Hawassa, exporting goods to the U.S. duty-free. The loss of AGOA benefits has led to reduced exports, job losses, and economic challenges for businesses and workers reliant on access to the U.S. market.

The decision to maintain Ethiopia’s ineligibility comes amidst broader discussions about governance, human rights, and trade relations in the country. While Ethiopia has been pursuing economic recovery efforts following years of conflict and instability, its exclusion from AGOA underscores the challenges it faces in meeting the program’s eligibility criteria.

AGOA benefits for 2025 will continue for 32 Sub-Saharan African countries, including Kenya, Ghana, and Nigeria, which remain eligible under the program. The full list of eligible and ineligible countries was released alongside the announcement.

As Ethiopia remains excluded from AGOA, the country faces increasing competition in the U.S. market from eligible regional counterparts. The ongoing exclusion highlights the importance of continued dialogue and efforts to address the criteria required for AGOA eligibility.











2 COMMENTS

Ittu Aba Farda







December 25, 2024 At 9:52 pm













This is Not the end of the world for Ethiopia’s made-for-exports products. It does not mean Ethiopia is completely banned from exporting its goods to America. It means it will no more gets tariff preferences. It should be taken as a motivation to make excellent quality products and offer them at attractive prices which means owners of factories whether government or private should look into their pricing structure and go after their profit margins. That means, instead of the current 60-70%, bring it down to 35%. That’s all to it. With all on-going reports of abuses, I don’t think that country will ever see a daylight in the AGOA inclusion soon. It is a curtain call for the owners to go to the drawing board and sharpen their pencils without touching the hourly wages of workers. Make excellent quality products with attractive and competitive prices and you will get companies that will buy them. Nuff said for now.

This is Not the end of the world for Ethiopia’s made-for-exports products. It does not mean Ethiopia is completely banned from exporting its goods to America. It means it will no more gets tariff preferences. It should be taken as a motivation to make excellent quality products and offer them at attractive prices which means owners of factories whether government or private should look into their pricing structure and go after their profit margins. That means, instead of the current 60-70%, bring it down to 35%. That’s all to it. With all on-going reports of abuses, I don’t think that country will ever see a daylight in the AGOA inclusion soon. It is a curtain call for the owners to go to the drawing board and sharpen their pencils without touching the hourly wages of workers. Make excellent quality products with attractive and competitive prices and you will get companies that will buy them. Nuff said for now.

Lawrence Freeman







December 26, 2024 At 5:56 am













Keeping Ethiopia out of AGOA is another horrendous decision by Biden. The US supported regime change by TPLF vs elected government of PMAbiy. Biden was a complete failure supporting 2 wars and ignoring the economic needs of the American people. Read: lawrencefreemanafricaandtheworld.com

Keeping Ethiopia out of AGOA is another horrendous decision by Biden. The US supported regime change by TPLF vs elected government of PMAbiy. Biden was a complete failure supporting 2 wars and ignoring the economic needs of the American people. Read: lawrencefreemanafricaandtheworld.com

Comments are closed.