Business 11 March 2026 The Observer (Uganda)
Why No US Trade Deal for Uganda Despite Critical Minerals and Growing Exports?
Uganda lacks direct binding trade agreements with the US, unlike neighbors like Rwanda and Kenya, relying instead on regional pacts amid new US tariffs. Despite possessing key minerals like graphite and lithium that the US needs, and recent export surges creating surpluses, no formal deal exists to boost commercial ties. Source: https://observer.ug/news/uganda-has-minerals-the-us-needs-so-why-is-there-no-trade-deal
Uganda stands out among East African nations as it has no direct trade agreements with the United States, unlike Rwanda, Kenya, DR Congo, and Tanzania. The country depends on regional arrangements for access to the US market.
This gap became more pronounced with the US imposition of 10% tariffs on all imports in February 2026, potentially rising to 15%. Uganda’s exports, including coffee, vanilla, fish, spices, cocoa beans, and nuts, face these levies without preferential treatment, despite a historical trade deficit that has shifted recently.
Bank of Uganda data shows a cumulative deficit of $612.18 million over the past decade, but 2024 saw a surplus of over $25 million, jumping to nearly $80 million in 2025 with a 50% rise in agricultural exports.
Uganda holds untapped reserves of graphite in Kitgum and lithium in districts like Ntungamo and Mubende—minerals critical for US industries. Yet, no deals exist to develop these, contrasting with US MOUs for EV battery chains in DR Congo and Zambia.
The Africa Growth and Opportunity Act (AGOA), which ended for Uganda in 2024 under Biden, provided limited benefits, with top exports like plant cuttings totaling just $20.52 million from 2001-2022. AGOA has favored oil producers and a few nations, while China’s trade with Africa dwarfs US figures.
A US State Department spokesperson emphasized reciprocity and balanced trade, noting growing ties. However, without a dedicated agreement, Uganda misses opportunities in the world’s largest market.