Ethiopia will remain excluded from the African Growth and Opportunity Act (AGOA) benefits in 2025, marking the third consecutive year of ineligibility. The decision was announced on December 21, 2024, following the annual AGOA eligibility review led by the United States Trade Representative.
AGOA, launched in 2000, offers duty-free market access to Sub-Saharan African countries meeting criteria such as human rights, governance, and economic reform standards. While 32 countries, including Kenya, Ghana, and Nigeria, continue to benefit from the program, Ethiopia’s exclusion persists due to governance and human rights concerns.
The loss of AGOA benefits has significantly affected Ethiopia’s export-driven sectors, particularly textiles and apparel, which once thrived under the program. Industrial parks, such as the one in Hawassa, experienced reduced exports and job losses due to restricted U.S. market access.
Ethiopia’s exclusion underscores ongoing challenges despite efforts toward economic recovery following years of conflict. Meanwhile, eligible countries in the region strengthen their competitive advantage in the U.S. market, emphasizing the importance of meeting AGOA’s eligibility standards for future reinstatement.