The Impact of Withdrawal from the African Growth and Opportunity Act on Ethiopian Economy
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Date
2023-02-02
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A.A.U.
Abstract
For many years, the US and Sub-Saharan Africa have not had strong trade and investment relations. In 2000, the African Growth Opportunity Act (AGOA) was introduced to promote public Act 106-200, whose goal has benefited the Sub-Saharan African Countries by eliminating the trade barriers, duties, levies, and quotas that would encourage trade between these countries. AGOA is a unilateral and non-reciprocal trade program that gives eligible Sub-Saharan African (SSA) countries the export of goods to the United States. The primary objectives of AGOA are to promote Sub-Saharan Africa's economies and improve economic relations between the United States and the SSA. But in the other way, AGOA is a tool to execute U.S. interests in Africa. So AGOA as an instrument of American domination over sub-Saharan Africa in their trade and investment. It is a good example of interfering in Ethiopia's internal issues direct in the name of AGOA. As a result, AGOA is more of a political tool than a tool for promoting trade between the U.S. and SSA. On paper, the AGOA is to encourage exports of African products, and open markets, and promote inclusive development, solid regional integration, and good governance on the continent of Africa. However, there has been significant growth in U.S. content domination since its inception, especially in Ethiopia. The point must make that SSA no longer needs aid; what we need in Ethiopia and other African countries is trade. This thesis shows the impact of withdrawal from AGOA on the Ethiopian Economy and what is another alternative available to the country. This research uses a quantitative and qualitative methods. Secondary data was the main data for this research. The researcher choose a purposive sampling technique that involves examining the entire population that has a particular set of characteristics to import and export data since AGOA was enacted. The data are collected through official Statistics, AGOA annual reports, previous research publications & annual reports
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Keywords
AGOA, FDI, Employment, firm-level, SSA, Ethiopia