Uganda is no longer a beneficiary of the African Growth and Opportunity Act (Agoa), after the United States struck the country off at the end of December.
The United States also removed three other African countries, the Central African Republic, Gabon, and Niger, from Agoa, effective from January 1.
The decree by US President Joe Biden on December 29 will effectively end Kampala’s ability to export certain commodities to the US without added tax. It could have a serious impact on the Ugandan economy, which has significantly benefited from the programme since its establishment in 2000.
The decision was made after Uganda passed its controversial Anti-Homosexuality Act last year, a law which could impose life imprisonment or even the death penalty for same sex conduct. In October, Biden said that Uganda’s removal from Agoa was due to “gross violations of internationally recognised human rights.”
“Despite intensive engagement between the United States and the Central African Republic, Gabon, Niger, and Uganda, these countries have failed to address United States concerns about their non-compliance with the Agoa eligibility criteria,” Biden said in a letter to the speaker of the US House of Representatives.
Agoa gives eligible sub-Saharan African countries duty-free access to the US for more than 1,800 products. It is set to expire in December 2025, although the US has signalled intentions to extend it.
It will be recalled that before Uganda was officially delisted from the Agoa Trade Deal, President Museveni in November 2023, has scoffed at the US government for “overestimating” itself following its decision to scrap Uganda off the beneficiaries of Agoa Trade Deal as well as as well as issuing a business advisory, discouraging American investments in Uganda.
According to Mr Museveni, Uganda has the capacity and capability to manage its own economic affairs without any help from the West.
“Some of these actors in the Western World overestimate themselves and underestimate the freedom fighters of Africa. On account of some of the freedom fighters making mistakes of philosophy, ideology and strategy, some of the foreign actors, erroneously think that African Countries cannot move forward without their support,” he said in a statement on November 5, 2023.
“Certainly, as far as Uganda is concerned, we have the capacity to achieve our growth and transformation targets, even if some of the actors do not support us,” he added.
Last week, the US President Joe Biden wrote to the Senate and the US House of Representatives, indicating that he was going to suspend Uganda and three other African countries off the AGOA beneficiaries list for their poor human rights record. This follows Uganda’s passing of the Anti-homosexuality law.
Mr Museveni accused the US government of double standards in its condemnation of countries on human rights.
“These pressures from outside are joogo (dharau – looking down upon somebody, underrating somebody) towards the Africans and must be rejected. I am told that some of the Arab Countries, have similar laws. Why don’t these actors put similar pressures, on them?” he said.
The President listed eight points that he said are critical for Uganda’s development.
“The eight points are: patriotism – not following politics of identity but following politics of interests; supporting the private sector; economic infrastructure development to lower the costs of doing business in the economy; regional integration to create big markets that can absorb our products; working with foreigners who respect us; eliminate corruption; social infrastructure to develop the human resource through universal education and health, and protecting the environment that controls our water and our rain,” he said.
“Uganda, under the NRM, is and will succeed, regardless of what some of the external actors and internal detractors do. The further good news, is that not all the Western Countries’ actors are of the same arrogant attitude. Many, actually, either agree with us or believe in the correct principles of live and let live. Even in the colonial times, some Western actors supported our anti-colonial struggle. People like Fenner Brockway, Dingle Foot, Olof Palme, etc., supported us.” He said.
Gabon, Niger and the Central African Republic (CAR) are the three other countries aside Uganda to be delisted from the Agoa Trade Deal, a special US-Africa trade programme.
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