Civil Society Organizations Council says AGOA restriction directly affects 200,000 Ethiopians  

Addis Ababa, November 5, 2021 (FBC) – Civil Society Organizations Council says AGOA restriction affects 200,000 Ethiopians out of which 80pct are women, and over a million citizens that make a living within the value chain of sectors such as apparel, footwear, and coffee.

The Ethiopian CSOs Council is a statutory body established by the Ethiopian Parliament under the Civil Society Organizations Proclamation No. 1113/2019, Art 85, which is composed of all CSOs registered by the Authority for Civil Society Organizations and relevant authorities operating in Ethiopia.

The council represents the voices of more than 3500 civil society organizations in Ethiopia. The national CSOs Council in Ethiopia learned of the suspension of the AGOA privileges for Ethiopia with great concern.

“We understand the suspension comes due to the year-long conflict that has engulfed northern Ethiopia and has resulted in an unprecedented humanitarian crisis with a potential to destabilize the Horn of Africa” it said.

“We are concerned that such restrictions could be counterproductive and the unintended consequences will be more severe as the step will directly affect close to 200,000 Ethiopians mostly women (over 80%) and over a million Ethiopians that make a living within the value chain of the sectors such as apparel, footwear, and coffee that benefit from the AGOA provisions” the statement by the Council indicated.

Owing to the sheer level of economic isolation and threat to trading relationships, the effects can be especially damaging to the business, trade, and commerce of Ethiopia, impacting not only its GDP but also creating a negative effect on the livelihood of tens of millions of Ethiopians that depend on the business confidence striving to get out of poverty and have nothing to do with the conflict.

As a result of the negative effects of trade embargoes, domestic industries and producers often suffer a decline in their export markets and revenues, thereby threatening jobs and livelihoods.

Countries that tend to specialize in certain commodities, goods, and services can be most affected by these constraints as key sectors of the economy may be adversely impacted. Given their level of development, poorer countries are often restricted to producing goods in the primary industry that may have relatively lower returns.

The national CSOs Council represents over 3,500 (Three thousand five hundred) CSOs in Ethiopia and primarily works for the welfare of most vulnerable and marginalized Ethiopians. As such we would like to express our grave concern with the USG’s decision to suspend Ethiopia’s AGOA privileges as it will directly affect the low income segment of the society, particularly women and will likely bear no fruits in the effort to restore the peace and security of the Country.

As a non-partisan and non-political group of organizations, we have closely and critically observed the unfolding crisis and the current situation in Ethiopia as well as the position of the US government.

This suspension risks the reversal of decades long trade relationship built and is not in the best interest of neither the Ethiopian nor the American public. We appreciate the USG’s commitment to continued humanitarian assistance to affected communities in northern Ethiopia and note that the suspension of AGOA privileges undercuts the efforts towards self-reliance, dignified living, and resolution of the current conflict, and the efforts to ensure respect for human rights.

The CSO Council would also like to point out that such a step is likely to weaken the relationship between the people and governments of Ethiopia and the USA, again regressing the investment made for decades to build a partnership of mutual trust and respect.

We call on the USG to continue supporting the resolution of the conflict in an impartial manner as well as in a manner that does not jeopardize the wellbeing of additional millions of people and therefore make every effort to restore Ethiopia’s eligibility under AGOA, the Council underlined.