In a letter to the Speaker of the House of Representatives and the President of Senate, President Trump said that the government of Rwanda continues to impose barriers to United States Trade which affects the exports of apparel products.
“I am providing advance notification of my intent to suspend the application of duty free treatment to all African Growth and Opportunity Act (AGOA)-eligible goods in the apparel sector for the Republic of Rwanda 60 days after the date of this notification,” the letter reads.
“The Government of Rwanda continues to impose barriers to United States trade, specifically, barriers affecting certain United States exports of apparel products,” he said.
According to Trump, in spite of intense engagement by United States officials with the Government of Rwanda, the United States has been unable to resolve this matter.
“I have therefore determined that the Government of Rwanda is not making continual progress toward the elimination of barriers to United States trade and investment, as required by section 104 of the AGOA,” he said.
In the letter, Trump says that the suspension of duty-free treatment described above is a more appropriate response in these circumstances than the termination of the Government of Rwanda’s designation as a beneficiary Sub Saharan African country under AGOA, as it promotes the continuation of efforts between the United States and Rwanda to resolve outstanding issues.
“Although the Government of Rwanda has failed to meet critical benchmarks required to address these issues to date, it continues to express an interest in resolving United States concerns,” he noted.
He says that he will continue to assess whether the Government of Rwanda is making continual progress toward the elimination of barriers to United States trade and investment in accordance with the AGOA eligibility requirements, as well as whether this suspension of benefits is effective in promoting compliance with those requirements.
Rwanda Stands firm on banning second hand clothes
In February, the Minister of Trade and Industry, Vincent Munyeshyaka told IGIHE that since Rwanda entered in AGOA, they only exported handicrafts products which did not exceed USD one million for the country per year.
“Actually our business with USA under AGOA is 0.05%. It is a small business which we cannot rely on and develop our industries,” he said.
As a way to promote locally made products, particularly textile and shoes industries, Rwanda has hiked taxes on imported second-hand clothes and shoes in order to weaken them on local market, but promote locally made products under ‘Made in Rwanda’ Programme.
Munyeshyaka said that banning second-hand clothes is in line with the country’s programme to develop industrial sector.
Munyeshyaka said that currently made in Rwanda programme is creating between 20,000 and 21,000 of jobs per year.
He said that the industrial sector comes to the third place in contributing to the development of Rwanda’s economy with 16% after services covering 47% and agriculture 30%.
“Under the move to develop the economy of the country, we need to develop our industry sector. As you know no country has developed without investing in the development of industries,” he said.
