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Ethiopia Unhappy As US Ends Its Duty-Free Access

Ethiopia in recent years had one of Africa’s fastest-growing economies, but the war in Tigray has dampened that momentum.

December 28, 2021
in Economy, Top Stories
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Ethiopia 'Disappointed' By US Move To End Trade Deal

Ethiopian Minister of Trade and Industry, Melaku Alebel.

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By John Ikani

The Government of Ethiopia has expressed displeasure over the United States decision to revoke duty-free access for the East African country’s exports, stressing that it is “extremely disappointing.”

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“The Ethiopian Government is saddened over the decision by the U.S. to remove it,” from the preferential trade benefits, the ministry said. It asked the U.S. to reconsider its decision,” the Ethiopian Ministry of Trade said on Tuesday.

“Ethiopia is carrying out various initiatives aimed at bringing peace and stability, political consensus and economic development in addition to conducting reforms in line with the longstanding relationship between the two countries,” the statement said.

The Biden administration on Dec. 23 terminated Ethiopia’s eligibility for benefits under the African Growth and Opportunity Act. The U.S. cited its disapproval of the war in the Tigray region for the action.

The U.S. and the United Nations say Ethiopian authorities have prevented trucks from delivering desperately needed food and other aid into Tigray. Scores of people have starved to death, The Associated Press has reported.

In September, Biden warned that his administration would levy sanctions if Ethiopian Prime Minister Abiy Ahmed did not take steps to wind down the war in Tigray and other regions.

The U.S. stopped Ethiopia’s eligibility for the trade benefits despite pleas by a few U.S. legislators and Ethiopian lobby groups who asked the Biden administration to give the country more time to comply with U.S. demands.

The decision against the African nation was made over its failure to end a nearly yearlong war in the Tigray region that has led to “gross violations” of human rights, said the Biden statement. The action also stops Guinea and Mali from receiving the trade benefits as of January 1.

Ethiopia in recent years had one of Africa’s fastest-growing economies, but the war in Tigray has dampened that momentum.

In case you missed it

A conflict between the Government of Ethiopia and forces in its northern Tigray region has thrown the country into turmoil.

Power struggle, an election and a push for political reform are among several factors that led to the crisis.

Fighting has been going on since November 2020, destabilising the populous country in the Horn of Africa, leaving thousands of people dead with 350,000 others living in famine conditions.

Eritrean soldiers are also fighting in Tigray for the Ethiopian Government. All sides have been accused of atrocities.

Tags: Ethiopia Ministry of TradeEthiopia-Tigray ConflictMelaku Alebel
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