The United States government announced via a press release issued on 31st October that beginning January 1 2020 it will no longer accept Cameroon on the AGOA trade preference program targeted at qualifying African countries.
Writing to the United States Congress, the US President Donald Trump cited severe human rights abuses by the government of Cameroon as the cause of the country’s ineligibility to continue on the program.
This is what he said:-
I am taking this step because I have determined that the Government of Cameroon currently engages in gross violations of internationally recognized human rights, contravening the eligibility requirements of section 104 of the AGOA.
According to the press release published on the White House website announcing this step, Trump accused Cameroon authorities of extrajudicial killings, arbitrary and unlawful detention, and torture.
AGOA stands for the African Growth and Opportunity Act which is an Act of Congress which was enacted back in 2000 and has been renewed up to 2025.
According to documentation of the program:-
Qualification for AGOA preferences is based on a set of conditions contained in the AGOA legislation. In order to qualify and remain eligible for AGOA, each country must be working to improve its rule of law, human rights, and respect for core labor standards.
What does AGOA ineligibility mean for Cameroon
In trade terms, it is apparent from our analysis that Cameroon will be the net looser following the expulsion. The heavy impact of the AGOA exclusion will be felt by businesses in Cameroon such as those into textile and footwear that have been exporting to the US. These businesses support many livelihoods.
Of the 18 years Cameroon has been participating on the AGOA since the beginning in 2000, it has enjoyed 12 out of 18 years in trade surplus with the United States.
According to AGOA data, in 2008 the country’s trade surplus peaked at about $500 million. Its worst trade deficit against the US was $115 million in 2014.
Put together over the 18 years of AGOA eligibility that has now abruptly come to an end, Cameroon has had a positive trade balance with America. In other words its trade relationship with the US throughout these 18 long years, despite intervening negative years, was profitable.
At the time of the Trump expulsion, Cameroon had just emerged out of a negative trade balance with the US which took root in 2014.
The United States has in fact cut itself some losses by removing Cameroon from AGOA. We have no doubt that before these decisions are made, critical assessment of what America stands to lose is made.
Taking into account America’s 18 years of losses, cutting Cameroon loose from AGOA may have been the easiest decision for Mr Trump to make. This is considering that his political ticket into office included correcting America’s trade losses.