The United States is fighting against one of the world's poorest countries – Honolulu, Hawaii news, sports and weather



[ad_1]

Kara Fox and Edward Kiernan

KIGALI, Rwanda (CNNMoney) – Occasional clothing donated by Americans has provoked a bitter trade dispute between the United States and one of the world's most poor of the world.

The dark conflict is playing out in the garment markets in Rwanda, where the government has increased import duties on used clothing from the United States from $ 0.25 to $ 2.50 per kilogram .

The tax hikes, imposed in 2016, are aimed at encouraging domestic production of clothing in a country that still bears the scars of a terrible genocide 24 years ago. But they provoked a reaction from the Trump administration.

Used clothes, many of which begin with American charitable donations, have long been a staple of wardrobes in Rwanda. Yet, their abundance and popularity have delayed the development of the local garment industry.

Rwandan President Paul Kagame said rights are needed to stimulate local producers and prevent his country from being used as a "garbage dump" for used American clothing. He proposed to ban imports by 2019.

Restrictions have upset traders in the United States.

The Association of Secondary Materials and Recycled Textiles, which represents companies selling used and recycled clothing, has filed a complaint with the US government. 2017 arguing that trade barriers put thousands of American jobs in jeopardy.

After an examination, the Office of the US Trade Representative warned in March that it would suspend some benefits that Rwanda had under AGOA, which allows countries in sub-Saharan Africa to To export to the United States. States without facing tariffs. Rwanda, for example, would lose the right to export duty-free clothing to the United States.

"The President's rulings underscore his commitment to our trade laws and the fairness of our trade relations," said US Trade Commissioner CJ Mahoney in March

who had 60 days The critics of the US decision say the government has overreacted to tariffs on used clothing, which only affects US $ 17 million a year and targets a country whose Average annual income is about 700 dollars.

Rosa Whitaker, a former US trade official who worked on African issues under Presidents Bill Clinton and George W. Bush, said the Trump administration was acting from a "distorted sense" from America first. "

"The Trump administration's symbolic statement rather than a substantive statement," she said. "I see America picking commercial battles, but I have been surprised that we have time to pick one with Rwanda, we are talking about a small amount of trade. "

Whitaker, who helped design the AGOA, said that

"One of the key points of the agreement was to help African countries develop a garment manufacturing base because we understood that clothing was the first point entry into the manufacturing sector. "The US Trade Representative's Office did not respond to requests for comment.

In Rwanda, the Government is committed to assisting exporters affected by the trade dispute by compensating them for new US taxes.

"We are in a situation where we have to If you choose, you choose to be a recipient of used clothing … or choose to develop our textile industries, "Kagame told reporters in June. "As far as I'm concerned, making the choice is simple."

The reaction to the conflict was mixed in the markets of Kigali, the capital of Rwanda.

Elie Mazimpaka, who has been selling used clothing in Kigali for more than a decade, said that at least half of the sellers in his market are gone. Customers buy less used clothes, many opting for cheaper Chinese products.

While Chinese products are new, some Rwandans have said that they preferred the unique style that the American clothing had offered them

Mazimpaka, 35, said that government plans to stimulate domestic production have not yet been felt. 19659002] "Plants are part of a good plan but do not yet deliver products to poor communities," he told CNN as he sifted through a pile of dresses.

Despite the risks to his own work, Mazimpaka believes that reducing imports of used clothing is justified.

On a crowded table of denim jackets, football tops and bras, Media Kamirwa, 25, was in agreement

"America should not use clothing for Attempt to Attend Rwanda She said:

TM & 2018 Cable News Network, Inc., a Time Warner Company, All Rights Reserved

[ad_2]
Source link