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Uganda Considering Alternative Markets Following AGOA Exclusion

In Uganda, the recent enactment of the ‘Same-Sex Relationships (Prohibition) Act 2023’ led the United States to remove the country from the African Growth and Opportunity Act (AGOA). This agreement allowed Ugandan businesses to sell certain products to the U.S. tax-free. Without it, Ugandan businesses could lose billions of shillings in income.

The decree to exclude Uganda was issued on December 29, 2023, and made effective on January 1st, 2024. Uganda’s Minister of State for Trade, David Bahati, recently spoke out about the situation. He reiterated the government’s commitment to upholding the legislation, stating, “We are proud of the decision we make to defend the institution of marriage,” and that Uganda won’t “bow down because of these threats.”

Speaking to NTV Uganda, Bahati acknowledged the challenge but positioned it as a catalyst for economic diversification. He highlighted the continent’s need to build self-sustaining economies and establish alternative markets, citing ongoing regional integration efforts like the African Continental Free Trade Area and existing preferential trade agreements with China.

You can watch NTV Uganda’s interview of Minister Bahati here.