TRALAC - Trade Law Centre

Rwanda, US begin talks on AGOA

Wednesday, 06 September 2017 Published: | COLLINS MWAI

Source: The New Times (Rwanda)

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 Americans 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 kilogram, while taxes on used shoes will increase from $0.2 to $3 per kilogram.

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.

 

arrow right  See the charts on two-way trade with the United States since 2000. 

 

Related News

Kagame explains Rwanda’s formula in luring investors

Kagame explains Rwanda’s formula in luring investors

President Paul Kagame has shared tactics Rwanda applies to lure investors during the Corporate Council on Africa Presidential Dialogue on the Future of US-Africa Business. The dialogue brought together CEOs, decision makers and heads of State who trade with United States of America. Rwanda participated in the meeting because it is part of African Growth and Opportunity Act...

20 September, 2017
Lobbyist says US likely to punish East Africa over mitumba ban

Lobbyist says US likely to punish East Africa over mitumba ban

Donald Trump administration trade officials are likely to rule that three East African countries are violating eligibility terms for the US preferential trade programme for Africa, a lobbyist for Kenya warned on Friday. “The stars are aligned” for such a ruling before the end of the year, said Washington based attorney Paul Ryberg, an expert on the Africa Growth and...

26 August, 2017
US says Africa must allow import of used clothing

US says Africa must allow import of used clothing

The U.S. has advised  African countries against banning importation of used clothing, for them to continue benefiting from Africa Growth Opportunity Act (AGOA) Scheme which came into being May, 2000. AGOA is a U.S. Trade Act aimed at significantly enhancing market access to the U.S. for qualifying Sub-Saharan African countries. Acting Assistant U.S. Trade...

04 August, 2017
Trade experts fault US over AGOA review

Trade experts fault US over AGOA review

The US government has been faulted by trade and economic experts for the out-of-cycle review of the American Growth and Opportunities Act (AGOA) which could see Rwanda and East African countries barred from duty-free access to the US market. The review which began on July 13, is a response to a move by Rwanda and fellow East African Community countries to phase out and...

24 July, 2017
US exports of worn clothing to AGOA countries: a selection of DATA

US exports of worn clothing to AGOA countries: a selection of DATA

The decision by some countries, notably in East Africa, to consider a ban on the importation of worn clothing has elicited strong responses. A portion of imports of such worn clothing originates in the United States. This has led the Office of the United States Trade Representative (USTR), in consultation with the Trade Policy Staff Committee (TPSC), recently...

19 July, 2017