U.S. Extends Sanctions on Ethiopia, Keeping AGOA Trade Privileges Suspended

On Friday, the White House released a statement confirming the continuation of the National Emergency in Ethiopia. The U.S. government remains focused on the ongoing conflict in northern Ethiopia, emphasizing that the situation continues to pose a threat to regional stability and U.S. foreign policy interests.

The White House statement highlighted the gravity of the situation:
“The situation in and in relation to northern Ethiopia, which has been marked by activities that threaten the peace, security, and stability of Ethiopia and the greater Horn of Africa region, continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.”

The U.S. first declared a National Emergency in Ethiopia in September 2021, following Executive Order 14046, due to the ongoing conflict in northern Ethiopia. Despite a peace agreement brokered by the African Union in Pretoria, human rights violations and instability persist, prompting the U.S. to extend the sanctions for another year.

Impact of U.S. Sanctions on Ethiopia

The continuation of these sanctions comes at a critical time for Ethiopia. The country is navigating both internal and external challenges, with the U.S. sanctions adding economic pressure on top of ongoing diplomatic efforts to resolve human rights concerns. Notably, the sanctions affect Ethiopia’s trade privileges under the African Growth and Opportunity Act (AGOA), which once allowed the country to export goods to the U.S. duty-free, generating over $100 million annually.

Although Ethiopia has been working to lift the AGOA ban and restore trade relations, the ongoing sanctions reflect Washington’s stance that Ethiopia must address human rights violations and restore peace in the region before those privileges can be reinstated.

U.S. National Emergency Policy in Effect

The National Emergency Implementation Policy enables the U.S. president to take direct action when events in a foreign country threaten U.S. security and foreign policy. This policy continues to guide Washington’s approach to the situation in Ethiopia, underscoring the importance of regional stability in the Horn of Africa and its broader impact on U.S. interests.

Below is the full statement from the White House regarding the continuation of the National Emergency in Ethiopia:

Press Release: Notice on the Continuation of the National Emergency With Respect to Ethiopia

“On September 17, 2021, by Executive Order 14046, I declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the situation in and in relation to northern Ethiopia.

The situation in and in relation to northern Ethiopia, which has been marked by activities that threaten the peace, security, and stability of Ethiopia and the greater Horn of Africa region, continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. For this reason, the national emergency declared in Executive Order 14046 of September 17, 2021, must continue in effect beyond September 17, 2024. Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for one year the national emergency declared in Executive Order 14046 with respect to Ethiopia.

This notice shall be published in the Federal Register and transmitted to the Congress.

JOSEPH R. BIDEN JR.

With the U.S. sanctions extended for another year, Ethiopia faces a complex geopolitical landscape. The road ahead remains uncertain as Ethiopia works to address these challenges while seeking to restore peace and stability in the region.