Kampala, Uganda – (African Boulevard News) – Ugandan President Yoweri Museveni has hit back at the United States, accusing Washington of “overestimating” its importance following its decision to exclude Uganda from a major trade agreement. The announcement by the US has caused a stir in Uganda, with many expressing their disappointment and concern over the potential impact on the country’s economy.
The trade agreement in question is the African Growth and Opportunity Act (AGOA), which provides duty-free access to the US market for certain African countries. Uganda has been a beneficiary of AGOA since 2000, allowing its exports such as textiles, agricultural products, and handicrafts to enter the US market without facing heavy tariffs. However, in a move that has taken the Ugandan government by surprise, the US has decided to remove Uganda from the list of eligible countries.
President Museveni, in a speech delivered on Sunday, played down the significance of this exclusion. He argued that Uganda has the potential to find alternative markets and that the US is not the only trading partner available. He stated, “We have been trading with many countries before AGOA came into existence and we will continue to do so after.” Museveni also highlighted that Uganda has been successful in diversifying its export destinations and reducing its reliance on a single market.
While the President’s words may be aimed at boosting national morale, experts have expressed concerns over the potential impact of the US’s decision on Uganda’s economy. According to data from the Uganda Bureau of Statistics, exports to the US under AGOA have accounted for a significant portion of the country’s total exports. The removal of Uganda from the agreement could lead to job losses and a decline in export revenues.
Stakeholders in the textile and agricultural sectors, which have benefited greatly from AGOA, have voiced their worries about the future. Jane Kembabazi, a textile entrepreneur, said, “AGOA has been a lifeline for our industry. Losing this opportunity will have a devastating effect on businesses like mine and the countless workers we employ.”
The government has acknowledged the concerns and assured its citizens that it is actively exploring alternative trade opportunities. Trade Minister Amelia Kyambadde stated, “We are working to strengthen regional and bilateral trade agreements to compensate for the loss of AGOA benefits. Our focus is on diversifying our export markets and promoting value addition in our products.”
As Uganda grapples with the fallout from the US’s decision, it remains to be seen how the country will navigate this new trade landscape. The government’s efforts to find alternative trading partners and expand existing markets will be crucial in mitigating the potential impact on the economy and ensuring continued growth and stability for Uganda.
