Rwanda says decision taken by the EAC on mitumba ban still stands. PHOTO | NMG
The United States has the right to withdraw benefits of Africa
Growth and Opportunity Act (Agoa), the Rwandan government has said in
response to the suspension of its eligibility for apparel exports.
In
a brief statement on Tuesday, Kigali signalled that it would not
reverse restrictions on importation
of used clothes and shoes locally known as mitumba.
of used clothes and shoes locally known as mitumba.
"The notification by the
United States on suspension of duty-free status for Rwandan apparel
products under the African Growth and Opportunity Act (Agoa) follows a
decision by East African countries to raise tariffs on second-hand
clothing imports, in order to promote local manufacturing capacity in
garment and other industries," read the statement.
Kenya,
Tanzania and Uganda have abandoned the joint position, choosing
instead, to save the economic benefits that accrue under Agoa.
Agoa
is a trade deal that allows beneficiary countries in sub-Saharan Africa
to export their products to the US duty-free. It was enacted in the US
in 2000 to run to 2015 and renewed to 2025.
“Agoa
is a commendable unilateral gesture to African countries, including
Rwanda, meant to promote trade and development through exports. The
withdrawal of Agoa benefits is at the discretion of the United States,”
the statement from the government said.
Washington had said the suspension of the 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.
In 2016, Rwanda increased the
tariffs on imported used clothes from $0.20 to $2.50 per kilo with an
intention of eventually phasing out the importation. The government
argues that the move will boost its local manufacturing sector.
- Additional reporting by Allan Olingo.
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