USA officially warns Ethiopia of AGOA violation and pending sanctions of $444 million

A new sanction somewhat anticipated against Ethiopia has just been  announced by Von Batten-Montague-York, L.C., a consulting group,  the office of the President of the United States today informed the government of Ethiopia that they are in violation of the African Growth and Opportunity treaty signed with the United States under the African Growth and Opportunity Act of 2001. In order to avoid violation the government of Ethiopia must immediately withdrawal from Tigray, open communications, power, transport, and allow aid to Tigray.  If they do not then a loss of over $444 million dollars in revenue from sales of tax free exports to the United States will be stopped.

The African Growth and Opportunity Act of 2001 gave Ethiopia a chance to export 1800 different products to the United States duty free. However to participate in AGOA To meet AGOA’s there are strict eligibility requirements including ” countries must establish or make continual progress toward establishing a market-based economy, the rule of law, political pluralism, and the right to due process.  Additionally, countries must eliminate barriers to U.S. trade and investment, enact policies to reduce poverty, combat corruption and protect human rights.”

U.S. total imports of agricultural products from Ethiopia totaled $151 million in 2019. Leading categories include: unroasted coffee ($130 million), nursery products ($6 million), spices ($3 million), planting seeds ($357 thousand), and wine and beer ($271 thousand)

Only 9% of total imports to Ethiopia come from the United States. Ethiopia main imports are: foodstuffs, textile, machinery and fuel. Ethiopia main trading partners are: China (18 percent of total imports), Saudi Arabia (13 percent),  Russia and India (9 percent)