The move comes on the back of concerns about human rights violations in the three nations.

In September Biden passed an Executive Order urging parties to the conflict to halt their military campaigns, respect human rights, allow unhindered humanitarian access, and come to the negotiating table without preconditions. He also said Eritrean forces must withdraw from Ethiopia.

As part of the Executive Order, a new sanctions regime was established targeting those responsible for or complicit in the conflict and preventing a ceasefire.

A statement from US Trade Representative Katherine Tai yesterday (2 November) said the Administration is “deeply concerned  by the unconstitutional change in governments in both Guinea and Mali, and by the gross violations of internationally recognised human rights being perpetrated by the Government of Ethiopia and other parties amid the widening conflict in northern Ethiopia.”

“These countries are set to be removed from this program due to actions taken by their governments in violation of the AGOA Statute.  The United States urges these governments to take necessary actions to meet the statutory criteria so we can resume our valued trading partnerships

“I will provide each country with clear benchmarks for a pathway toward reinstatement and our Administration will work with them to achieve that objective.”

Ethiopia is the 22nd largest supplier of apparel to the US market. The country has experienced significant growth during the past five years – growing by 548% since 2016.

Ethiopian clothing suppliers previously warned of the impact stripping the AGOA trade benefit would have, particularly in the way of job creation.

Sandokan Debebe, the CEO of Ethiopia Industry Park Development Corporation (IPDC) urged the US to pay heed to AGOA’s social benefits saying every direct job creates 2.5 indirect job opportunities so the effect of the AGOA is social and not related to politics.

Last week, the president and CEO of the American Apparel and Footwear Association (AAFA)  wrote a letter to Prime Minister Abiy Ahmed stressing his concerns about the humanitarian crisis in Tigray and nearby regions and warned the US was considering stripping Ethiopia of its AGOA trade benefits.

Following Biden’s announcement, the trade body renewed its appeal yesterday noting that many US apparel and footwear brands are looking to diversify from China and that Africa is a logical place for many of them.

By utilising the benefits of AGOA, US companies can grow a vertical, responsible, and competitive apparel and footwear industry in Africa, the AAFA said.

“The humanitarian crisis in the Tigray region is simply unacceptable,” said Steve Lamar, president and CEO of the American Apparel & Footwear Association. “We urge all parties to ensure the safe passage of emergency relief and aid as a first step toward the cessation of hostilities and a process that will result in lasting peace. It is also our hope that AGOA benefits will not be interrupted as this would exacerbate a growing humanitarian crisis.” 

By Just Style