A statement released early this week by the Office of the United States Trade Representative says that US suspended AGOA benefits for a class of imports that totaled $1.5 million in 2017, which accounts for approximately only 3% of Rwanda’s total exports to the United States.
However, a statement notes that Rwanda remains eligible to receive non-apparel benefits available under AGOA, and the President’s action does not affect the vast majority of Rwanda’s exports to the United States.
{{Rwanda to enter new markets}}
Speaking to IGIHE, the Minister of Trade and Industry, Vincent Munyeshyaka said that the companies which used to export apparel and footwear products through AGOA, started connecting to new international markets.
“For example C&H Garments has market in the United Kingdom and German. But, we discussed with them on exploring opportunities on local market because it needs clothes, they have started and currently are participating in the exhibition so that they showcase themselves to Rwandans,” he explained.
Munyeshyaka ensured the government’s support in case the AGOA decision affects production and jobs.
“In case industries stop production and people lose jobs or, as the government, we will decide on how to support them,” he ensured.
According to the Minister, last year, Rwanda’s exports under AGOA from apparel and footwear products amounted to US$1.5 million.
“In case we do not get new markets to export those products, that is the only loss can be caused by the decision, but, entering new markets will help us secure the amount or earn beyond that,” he added.
According to Munyeshyaka, only eight industries have been exporting apparel and footwear products to the US market, with C&H Garments dominating, covering 90%.
Munyeshyaka reminded that Rwandan products are not totally banned on the US market as both countries have other agreements like Generalized System of Preferences (GSP) where taxes are exempted to some other Rwandan products exported there.
He reminded that Rwanda was not banned from exporting apparel and footwear products, “we were only denied duty-free exportation” he clarified.
The Chief Executive Officer of Rwanda Development Board (RDB), Clare Akamanzi said that Rwanda understands the decision on who stays as the beneficiary of AGOA as the decision of the United States.
Akamanzi was commenting on the decision in a press conference on Tuesday.
She said that in line with transiting to new markets, some companies have already sent samples of their products to European markets.
“We have a plan to maintain people who have been employed in those companies; I think the impact is not something we can’t manage” she said.
{{Expert commends Rwanda’s decision}}
The Chief Executive Officer of a world leading high-level international meeting of African CEOs, Africa CEO Forum, Amir Ben Yahmed hailed Rwanda’s decision adding that the decision would not be regarded as business issue, but it is politically motivated.
“Africans should be proud of the decision Rwanda took on this stage. No country in the World would accept second-hand clothing; it doesn’t exist for intellectual reasons and at the expense of its own industries. So, I have seen this debate shifted as the decision of Trump as business issue, but it’s political,” he noted.
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