The Ugandan government has responded to the United States’ decision to exclude the country from the African Growth and Opportunity Act (AGOA), expressing concerns about the impact on its farmers and small businesses. The US recently announced that Uganda, along with the Central African Republic, Gabon, and Niger, would be removed from the list of sub-Saharan African countries benefiting from AGOA starting in January 2024.
AGOA, enacted in 2000, allows African countries to export a wide range of products to the United States duty-free. However, this preferential trade treatment is subject to specific conditions related to political pluralism, respect for human rights and the rule of law, and the fight against corruption.
In a letter to Congress, US President Joe Biden cited human rights violations as the reason for Uganda’s exclusion. The Ugandan government has faced criticism from human rights groups, the UN, and Western countries since the adoption of the “Anti-Homosexuality Act 2023” in May.
A senior adviser to President Yoweri Museveni, Odrek Rwabwogo, stated that it appears the United States has chosen to punish Ugandans because of this law. The government expressed disappointment with the decision but remains open to discussions with Washington.
Rwabwogo emphasized that while Ugandan trade under AGOA was not significant, the growth of exports to the United States and other partners played an important role in the country’s economic strategy. He also highlighted concerns that Ugandan farmers and small business owners would suffer as a result of the exclusion.
President Biden called for the immediate repeal of the “anti-homosexuality law” and threatened to reduce American aid and investment in Uganda when the law was passed. The legislation imposes severe penalties for individuals involved in homosexual relations or promoting homosexuality, including the death penalty for “aggravated homosexuality,” although this sentence has not been applied in Uganda for years. In August, the World Bank announced the suspension of new loans to Uganda.
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