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It's your move, Rwanda tells US on mitumba ban

Tuesday April 03 2018
By EDMUND KAGIRE

The United States has the right to withdraw benefits of Africa Growth and Opportunity Act (Agoa), the Rwandan government has said in response to the suspension of its eligibility for apparel exports.

In a brief statement on Tuesday, Kigali signalled that it would not reverse restrictions on importation of used clothes and shoes locally known as mitumba.

"The notification by the United States on suspension of duty-free status for Rwandan apparel products under the African Growth and Opportunity Act (Agoa) follows a decision by East African countries to raise tariffs on second-hand clothing imports, in order to promote local manufacturing capacity in garment and other industries," read the statement.

Kenya, Tanzania and Uganda have abandoned the joint position, choosing instead, to save the economic benefits that accrue under Agoa.

Agoa is a trade deal that allows beneficiary countries in sub-Saharan Africa to export their products to the US duty-free. It was enacted in the US in 2000 to run to 2015 and renewed to 2025.

“Agoa is a commendable unilateral gesture to African countries, including Rwanda, meant to promote trade and development through exports. The withdrawal of Agoa benefits is at the discretion of the United States,” the statement from the government said.

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Washington had said the suspension of the benefits, instead of termination of Rwanda’s status as an Agoa beneficiary, would allow for continued engagement with the aim of restoring market access and thereby bringing Rwanda into compliance with the Agoa eligibility requirements.

In 2016, Rwanda increased the tariffs on imported used clothes from $0.20 to $2.50 per kilo with an intention of eventually phasing out the importation. The government argues that the move will boost its local manufacturing sector.

- Additional reporting by Allan Olingo.

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