The Office of the U.S. Trade Representative said on Monday that U.S. President Trump has suspended Rwanda’s eligibility to export duty-free clothing products to the United States because of Rwanda’s refusal to lift tariffs on second-hand clothing and footwear imported from the United States.
The ban was ordered by Trump in an announcement following a 60-day notice period, but the United States will maintain Rwanda’s other tax-free status under the African Development and Opportunity Act.
U.S. Deputy Trade Representative C.J. Mahoney said in a statement: “We regret this outcome and hope it is only temporary.” He added that the move will affect Rwanda’s annual value Exports worth approximately US$1.5 million account for only about 3% of the country’s total exports to the United States.
In July 2016, Rwanda, along with Kenya, Tanzania, Uganda and other countries, began to impose additional tariffs on imported second-hand clothing due to concerns that cheap foreign clothing would threaten its manufacturing industry. Rwanda has raised tariffs from US$0.2 to US$2.5 per kilogram in order to gradually eliminate the import of such goods and promote the development of its own industry.
In March 2018, U.S. President Trump warned that if these countries did not make concessions on tariffs, he would stop these countries from participating in the African Growth and Opportunity Act (AGOA) in 60 days, that is, on May 28. suspension of duty-free access to the U.S. market for its clothing.
After the United States issued this threat, Kenya, Tanzania, and Uganda all gave up on imposing tariffs, but Rwanda refused to change its position.
In 2000, the United States promulgated the African Growth and Opportunity Act, which relaxed market access for goods from African countries to the United States, allowing the United States to import 6,500 items of goods from African countries duty-free. Since the implementation of the act in 2000, Africa’s exports to the United States have tripled, with a total value reaching more than US$1 billion. (Title: Trump suspends Rwanda’s duty-free status for apparel exports to the United States)
