Farmers, SMEs to suffer from US decision to scrap Uganda off AGOA, says Rwabwogo

By Arafat Nzito | Thursday, November 2, 2023
Farmers, SMEs to suffer from US decision to scrap Uganda off AGOA, says Rwabwogo

Odrek Rwabogo, the Chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID) has expressed concern about the recent decision by the United States government to scrap Uganda off the list of beneficiaries  accessing the American market under the African Growth and Opportunity Act (AGOA).

Rwabogo who is also a senior presidential adviser to President Museveni expressed disappointment in the decision by the US to end the participation of Uganda trade programme saying that the the reason given by U.S. President Biden was, ultimately, because Uganda's democratically elected parliament passed an Act of which he and his colleagues in the U.S. Democratic party disapproved.

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“It mattered not that the law in question - the Anti-Homosexuality Act (AHA) is popular amongst Ugandans. There are numerous public opinion polls conducted by reputable western opinion research companies that are testament to that fact. However, it was not popular with President Biden and his colleagues. Therefore, it seems they have decided Ugandans should be punished,” he said.

According to him, it is difficult to see why the Biden administration made this decision, if not to benefit their domestic voter base ahead of the upcoming 2024 election. Certainly, no Ugandan, regardless of sexual orientation, will benefit.

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While Ugandan trade with the US through AGOA was insignificant, he stated that increasing exports to the US and other partners was an important part of Uganda's economic strategy going forward.

“Ugandan farmers and small business owners will suffer,” he said

He stated that the US action sends a message to all Ugandans - indeed, all Africans - that their already bleak prospects for economic prosperity are contingent on whether they vote in accordance with the values of whoever happens to hold high office in the US, rather than their own.

He informed the United States that democracy is slipping in Africa, while instability is on the rise. Uganda, on the other hand, is an increasingly rare example of an African economy that shares Western values of democracy and rule of law while also believing in and striving to uphold traditional African values.

“The AGOA programme was established in order to promote economic growth, good governance and free markets in Africa. It is a policy of great generosity and foresight by those who created it to bind Africa and the U.S. in partnership and respect. It was not established as a stick to beat the populace of African countries who vote in a way that offends the social sensibilities of the developed West,” he emphasized.

Analysts have also revealed that Uganda's delisting from AGOA will have a number of negative consequences for the Ugandan economy. For example, Ugandan exporters will face higher tariffs on their US exports, making their products less competitive.

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