TANZANIA has escaped the wrath of the United States in banning
duty-free treatment of its cloth imports, with the axe falling on Rwanda
after its decision to impose barriers on U.S. exports of secondhand
clothing.
Tanzania and neighbouring Uganda will continue to benefit from the
duty free treatment of its clothing imports stipulated under the African
Growth and Opportunity Act (AGOA).
According to reports, a letter from US President Donald Trump to
Congress stated that United States is continuing AGOA benefits for
Tanzania and Uganda because both have taken steps towards eliminating
used clothing tariffs, the U.S.
Trade Representative’s office said in a separate statement. “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,”
Deputy US Trade Representative C J Mahoney said in a statement. As
for Rwanda, the letter noted that its duty-free status for apparel will
end in 60 days if no corrective actions by Rwanda are taken.
The action followed a petition by the US used clothing industry last
year alleging that planned bans by Rwanda, Tanzania and Uganda on used
clothing and footwear harmed the industry.
The AGOA trade programme provides eligible sub-Saharan countries
duty-free access to the United States on condition that they meet
certain statutory eligibility requirements, including eliminating
barriers to U.S.
trade and investment, among others. “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,” the statement reads in par
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