Trump suspends duty-free status for clothes imports from Rwanda

KIGALI (Reuters) – President Donald Trump has suspended the United States of America's decision to increase trade and commerce, the US Trade Representative's Office said.

on Monday, was seen by many in Washington and Africa as foreshadowing the Trump administration planned to apply its 'America First' trade ideology on the continent.

Despite the suspension, Rwanda will maintain its other duty-free benefits under the African Growth and Opportunity Act (AGOA), America's flagship trade legislation for Africa.

"We regret this finding and hope it is temporary," Deputy USTR C.J. Mahoney said in a statement, adding that the move would affect $ 1.5 million in Rwandan exports, or about three percent of its total exports to the United States.

Clare Akamanzi, CEO of the Rwanda Development Board, told reporters on Tuesday that companies producing products for export were already approaching European buyers.

"We expect some Rwandan companies to be affected," she said. "We have a plan for them. We would like to be involved with the transition to new markets. "

Akamanzi said the government would also be helping them financially.

On the streets of Kigali, where residents say the decision has been made, condemnation of the U.S. decision was muted.

"The 'Made in Rwanda' clothes are expensive," said Jean-Marie Nsengimana, a hotel worker and father of four. "It used to be cheaper with second-hand clothes. Rwanda should try and negotiate with the U.S. "

Kenya, Tanzania, Rwanda and Uganda to local textile industries.

Purpose in March 2017, the Secondary Materials and Recycled Textiles Association (SMART), a trade group representing U.S. used clothing exporters, filed a petition, arguing that the increase violated AGOA.

Though they contested SMART's assertions, Kenya, Tanzania, and Uganda backed down and agreed to roll back the duty increases.

But Rwanda refused and, as a result, joined the ranks of Canada, Mexico City, the European Union and China, all of which were the targets of Trump's aggressive trade tactics.

Andrew Mold, head of the United Nations Economic Commission for Africa's East Africa office, said he was disappointed by the USTR's announcement.

"We know the current U.S. administration has a different position on international trade than previous administrations, particularly with countries with which the United States has broad trade deficits," he said.

"But in this case the U.S. actually has a trade surplus with Rwanda."