Rwanda faces suspension of its African Growth and Opportunity Act (AGOA) benefits by the United States over its decision to ban the importation of used clothes, while Tanzania and Uganda have succumbed to the threats issued in the past two years.
U.S. President Donald Trump has notified Congress of the suspension of duty-free treatment for all AGOA-eligible apparel products from Rwanda in 60 days, says the Deputy U.S. Trade Representative C.J. Mahoney in a statement issued this week.
“The President believes suspension of these benefits, instead of termination of Rwanda’s status as an AGOA beneficiary, would allow for continued engagement with the aim of restoring market access and thereby bringing Rwanda into compliance with the AGOA eligibility requirements,” said the statement.
“The President is not suspending benefits for Tanzania and Uganda because each has taken steps toward eliminating prohibitive tariff rates on imports of used clothing and footwear and committed not to phase in a ban of these products,” it added.
READ ALSO: U.S. issues ultimatum to three African countries to reverse ban on used clothes imports
Mahoney commended Tanzania and Uganda for reversing the ban and added that the U.S. will continue to monitor whether they “implement these commitments and demonstrate compliance with all of AGOA’s eligibility requirements.”
“I commend Tanzania and Uganda for taking corrective steps to address the United States’ concerns. We have and will continue to work with Rwanda to resolve this situation … The President’s determinations underscore his commitment to enforcing our trade laws and ensuring fairness in our trade relationships,” he said.
In February, the head of economic and regional affairs at the Africa Bureau of the US State Department issued the three countries a one-week ultimatum to reverse the ban or face trade sanctions.
The six-nation (East African Community) EAC comprising of Kenya, Uganda, Rwanda, Burundi, Tanzania and South Sudan decided to fully ban imported second-hand clothes and shoes by 2019, arguing that it would help member countries boost domestic clothes manufacturing.
As signatories to the AGOA trade programme which offers them duty-free access to the United States, their decision violated the programme’s conditions which includes the eliminating barriers to U.S. trade and investment, among others.
The United States was petitioned by the Secondary Materials and Recycled Textiles Association (SMART) which complained that the ban “imposed significant hardship” on the U.S. used-clothing industry and violated AGOA rules.
Kenya withdrew its decision to ban used clothes imports after earlier threats by the United States to review trade benefits which Kenya was a major beneficiary. The other countries did not budge.
Rwandan President Paul Kagame had stated that his country will proceed with the ban on used clothes imports and will choose to grow its local textile industry at the expense of being a member of the AGOA.
Uganda and Rwanda had raised taxes for used clothes and offered incentives to manufacturers to invest in their local textile industry.
U.S. imports from Rwanda, Tanzania, and Uganda totalled $43 million in 2016, up from $33 million in 2015 while exports were $281 million in 2016, up from $257 million in 2015.
Anthony Madu, the 14-year-old Nigerian dancer from Lagos who gained admission to a prestigious ballet…
Actor-host Wayne Brady recently opened up about his early financial struggles in his now thriving…
Mia Arianna, also known as @mia.ariannaa on TikTok, helped her son become an honorary team…
Alvin Gauthier, a Grand Prairie USPS postman, recently went above and beyond to brighten a…
Maj. Gen. Fatuma Gaiti Ahmed is the first female commander of the air force and…
Benjamin E. Mays High School brought together its 272 senior class members for a meeting…
Afrika Owes' emotional response to learning that she had passed the bar exam on her…
A 49-year-old New York attorney was on April 26 sentenced to 10 years in federal…
During an appearance on The Jennifer Hudson Show on Wednesday, pop legend Cher opened up…
Authorities in Florida said an 11-year-old boy was accidentally shot and killed by his 14-year-old…
The famous Taylor Schlitz family is making headlines once more as the youngest of the…
Sony Pictures Entertainment has appointed Tahra Grant as its Chief Communications Officer. She replaces Robert…
Meet Ashley M. Fox, the founder of Empify and the first in her family to…
Tyra Banks, the iconic former host of Dancing With the Stars, has made a delightful…
A Brazilian woman named Érika de Souza, 42, is under investigation for manslaughter after authorities…