Suspending US trade deal over Tigray will hurt Ethiopian textile industry

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Duty-free status for US is market under Agoa is boon to Ethiopian economy and suspension would hurt poor women

28 October 2021 - 19:50Finoteselam Nigussie cuts fabric at the Sammy Ethiopia factory in Addis Ababa, Ethiopia, October 14 2021. Picture: TIKSA NEGERI/REUTERS

Suspension of benefits under the African Growth and Opportunity Act would threaten Ethiopia’s aspirations to become a light manufacturing hub and dent hard-won economic gains in a nation once a byword for hunger and poverty. The government has denied blocking aid and said individual soldiers have been tried for any abuses, without giving details. Eritrea has denied committing abuses.

At Finoteselam’s company, Sammy Ethiopia, about 90% of products are exported to the US, via retailers such as Eileen Fisher and Anthropologie. Mamo warned an Agoa suspension would hurt US companies trying to diversify production from Asia by relocating or expanding to Ethiopia.

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Ethiopian textile industry at risk if U.S. suspends trade deal over Tigray warIn a crowded Addis Ababa factory, Finoteselam Nigussie's needle plunges in-and-out of the gauzy white cloth she deftly guides through a sewing machine.
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