The United States has announced that Ethiopia will remain ineligible for the African Growth and Opportunity Act (AGOA) benefits in 2025, marking the third consecutive year the country has been excluded from the program. The decision was confirmed in a statement released on December 21, 2024, by USTR Spokesperson Sam Michel, following the annual AGOA eligibility review chaired by the Office of the United States Trade Representative.

AGOA, established in 2000, provides Sub-Saharan African countries duty-free access to the U.S. market for a wide range of products. The program is designed to promote economic growth and strengthen U.S.-Africa trade relations. Eligibility for AGOA is reviewed annually, with countries required to meet specific criteria, including adherence to internationally recognized human rights, governance standards, and economic reforms.

According to the statement, “President Biden has determined to maintain AGOA benefits for each country currently eligible under the program. Therefore, the list of eligible and ineligible countries will remain unchanged for 2025.” Ethiopia, which has been excluded from AGOA since 2022, is listed among the ineligible countries for the upcoming year.

Ethiopia’s exclusion from AGOA has had a significant impact on its export-oriented industries, particularly the textile and apparel sector. Prior to its removal from the program, Ethiopia was one of the key AGOA beneficiaries, with its industrial parks, such as the one in Hawassa, exporting goods to the U.S. duty-free. The loss of AGOA benefits has led to reduced exports, job losses, and economic challenges for businesses and workers reliant on access to the U.S. market.

The decision to maintain Ethiopia’s ineligibility comes amidst broader discussions about governance, human rights, and trade relations in the country. While Ethiopia has been pursuing economic recovery efforts following years of conflict and instability, its exclusion from AGOA underscores the challenges it faces in meeting the program’s eligibility criteria.

AGOA benefits for 2025 will continue for 32 Sub-Saharan African countries, including Kenya, Ghana, and Nigeria, which remain eligible under the program. The full list of eligible and ineligible countries was released alongside the announcement.

As Ethiopia remains excluded from AGOA, the country faces increasing competition in the U.S. market from eligible regional counterparts. The ongoing exclusion highlights the importance of continued dialogue and efforts to address the criteria required for AGOA eligibility.