Trump Administration Invites Uganda to Join 'Trade Over Aid' Caucus

The US has invited Uganda to sign onto the ‘Trade Over Aid Caucus,’ a new initiative pushing developed nations to prioritize trade over annual aid commitments. A document circulated by the US embassy at the UN in New York outlines five non-binding principles, emphasizing sovereign economic control, free-market policies for prosperity, and private-sector trade partnerships.

Ugandan diplomats confirmed receiving the invitation, with deadline April 15, and consultations underway at the top levels. Signatories could attend a formal ceremony later this month. Secretary of State Marco Rubio instructed US missions worldwide to rally support, framing it as a way to advance ‘America First’ values and US business opportunities.

In Kampala, US Embassy spokesperson Amy Peterson clarified that foreign aid isn’t ending but evolving. ‘We are ending the old model,’ she said, advocating for targeted, conditional, time-bound aid measured by results, not intentions, to reduce dependency and foster mutual prosperity through private investment.

This push follows the Trump administration’s 2025 freeze on $40 billion in USAID funding and its restructuring under the State Department. Uganda ranks among 26 Global South nations heavily impacted by these cuts. Broader trends show declining international aid, with OECD reporting a record drop in 2025 spending.

UN Resident Coordinator Office’s Michael Wangusa noted ‘trade over aid’ as a growing donor narrative amid budget cuts. Uganda is exploring alternatives like domestic financing and blended finance. Meanwhile, talks with US firms Starlink and Boeing signal potential trade deals.

Source: Daily Monitor