This archive report was first published on 29 August 2021.
On July 1, 2021, a tank damaged during the fighting between Ethiopia's National Defense Force (ENDF) and Tigray Special Forces stands on the outskirts of Humera town in Ethiopia.
The ongoing conflict in northern Ethiopia has raised concerns that the country's trade benefits under the African Growth and Opportunity Act (AGOA) may be at risk. The U.S. Trade Representative's Office has stated that the conflict and humanitarian crisis could affect Ethiopia's eligibility for the trade programme.
AGOA provides sub-Saharan African nations with duty-free access to the United States, but eligibility is contingent on meeting certain requirements, including eliminating barriers to U.S. trade and investment and making progress towards political pluralism.
U.S. Trade Representative Katharine Tai met virtually with Ethiopia's Chief Trade Negotiator Mamo Mihretu on Wednesday, according to a statement from the USTR. Tai raised concerns about the ongoing violations of internationally recognised human rights in northern Ethiopia, which could impact the country's future AGOA eligibility if left unaddressed.
Responding to the concerns, Ethiopia's foreign affairs ministry spokesperson, Dina Mufti, stated that the issue of AGOA was being presented to intimidate the country. He added that there was nothing being terminated and that it was possible that the two sides would agree on some issues.
AGOA, approved in 2000, aims to support African economic growth by providing duty-free access to the U.S. market for over 1,800 products. In 2020, Ethiopia exported $525 million in goods to the United States.
