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How One Tariff Reshaped Global Coffee Trade
Description
In this episode, Lucas and Luna explore how a single tariff exemption for Ethiopian coffee under the African Growth and Opportunity Act (AGOA) rewrote global coffee trade dynamics. They trace the impact from 2004, when Ethiopia's coffee exports to the US were minimal, to 2024, when they exceeded $250 million. The discussion covers how the rule incentivized supply chain shifts, empowered smallholder farmers, and prompted other nations to negotiate similar preferences. Listeners learn about the specific mechanism—qualifying origin criteria, value-added requirements, and the role of the US Trade Representative. The episode also touches on the broader implications for East African economies and why coffee tariffs remain a hot-button issue in trade policy debates.