The government of Rwandan
has opened talks with the United States on the review of the American Growth
and Opportunities Act (AGOA) in a bid to ensure continued duty-free access to
the US market.In July
this year, the American began an out of cycle review on the eligibility of
Rwanda and other East African Community partner states following a move by the
region to phase out and eventually ban import of second hand clothes.
This move
was aimed at supporting the regional textile industry and preserving the
dignity of the East African citizens.As part of the move, Rwanda last
year increased taxes on used clothes from $0.2 to $2.5 per kilogramme, while
taxes on used shoes will increase from $0.2 to $3 per kilogramme.
Rwanda
Development Board Chief Operating Officer, Emmanuel Hategeka said that they are
in talks with the US to ensure Rwanda is not locked out of the trade window.We
are talking to our partners in the US. We value our trade and relations with
the US and we are doing all that is possible not to be out of cycle and of
course we have been engaging on the issue,†he
said.
Without
mentioning the specific aspects of the negotiations or the tradeoffs the
government was willing to make, he said that talks were at an advanced stage.Exports
from Rwanda, Tanzania and Uganda through the act totaled $43 million in 2016,
whereas US exports into Rwanda, Tanzania and Uganda totaled $281 million in
2016.
Source: Business Report, South Africa Friday, 08 September 2017