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President Donald Trump suspended Rwanda's right to export duty-free clothing to the United States following Kigali's decision to raise tariffs on imports of clothing and footwear Used. March and confirmed on Monday, was seen by many in Washington and Africa as prefiguring how the Trump administration planned to apply its "America" business ideology first to the continent .
Despite the suspension, Rwanda will maintain its other duty-free benefits under the Growth and Opportunity Act in Africa ( AGOA ), America's flagship trade legislation for Africa
. We expect some Rwandan businesses will be affected. We have a plan for them. We have engaged them and will badist in the transition to new markets.
"We regret this result and hope that it will be temporary," said USP MP CJ Mahoney, in a statement, adding that would affect about 1.5 million dollars in Rwandan exports about 3% of its total exports to the United States.
Clare Akamanzi, Rwanda Development Board CEO told reporters Tuesday that apparel-exporting companies were already approaching European buyers
"We hope that some Rwandan companies will be affected, "she said. "We have a plan for them, we have hired it and we are going to help the transition to new markets."
Akamanzi said the government would help them financially, although she refused to give details.
In the streets of Kigali, where residents say the increase in duties on used clothing imports has pushed up prices, the condemnation of the US decision has been moderate.
"Clothes" Made in Rwanda "are expensive," said Jean-Marie Nsengimana, a worker and father of four. "It was cheaper with occasional clothes." Rwanda should try to negotiate with the United States "
Kenya, Tanzania, Rwanda and Uganda to increase their rights on used clothing and footwear in 2016 to feed their local textile industries.
But in March 2017, Secondary Materials and Textile Recycling Association ( SMART ), a trade group representing US used clothing exporters, filed a petition, claiming that the increase was violating AGOA .
Although they disputed the claims of SMART, Kenya, Tanzania, and Uganda retreated and agreed to rollback the rights increases
But Rwanda refused and, therefore, joined the ranks of Canada, Mexico, the European Union, and China, all of whom have been targeted by Trump's aggressive commercial tactics. Andrew Mold, bureau chief of the United Nations Economic Commission for East Africa, said he was disappointed by the announcement of the USTR.
"We know that the current US administration has a different position" But in this case, the United States actually has a trade surplus with Rwanda. "
REUTERS
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