A release from the White House says the US government has reviewed the eligibility of three East African countries – Rwanda, Tanzania, and Uganda – for trade preference benefits under the African Growth and Opportunity Act, AGOA.
This followed a petition filed by the American used clothing industry a year ago when the three countries moved to ban the import of used clothes and footwear from the US.
Expectedly, the review found that the import ban harms the US used clothing industry and is inconsistent with AGOA beneficiary criteria for countries to eliminate barriers to US trade and investment.
The US authorities determined that Rwanda has not made much progress toward the elimination of barriers to American trade and investment, and therefore is out of compliance with eligibility requirements of AGOA. President Donald Trump has notified Congress and the Government of Rwanda of his intent to suspend duty-free treatment for all AGOA-eligible clothing products from Rwanda in 60 days.
The President saw the suspension of the benefits as taking the middle ground, instead of terminating Rwanda’s status as an AGOA beneficiary. The idea is to allow for continued engagement to bring Rwanda into compliance with the AGOA eligibility requirements.
Tanzania and Uganda came out in better light after the review. The governments of the two states had taken steps toward eliminating the tariff rates on imports of used clothing and footwear and declared that they would not ban the products. The release said the US would continue to monitor whether Tanzania and Uganda implement these commitments and demonstrate compliance with all of AGOA’s eligibility requirements.
Reflecting on the press release, the Deputy US Trade Representative, Chuck Mahoney, said “The President’s determinations underscore his commitment to enforcing our trade laws and ensuring fairness in our trade relationships. I commend Tanzania and Uganda for taking corrective steps to address the concerns of the US”. He pledged to continue to work with Rwanda to resolve the situation.
