Rwanda supports regional textile production- James Musoni
Regional leaders met in Kampala on Friday to devise means of increasing East Africa’s trade competitiveness through, among other means, creating a competitive textiles industry.
The leaders were speaking at the East African Community (EAC) Heads of State Retreat on Infrastructure, Health Financing and Development in Kampala.
“The summit, with regard to promoting the cotton, textile, apparel and leather industries in the region, to make the region more competitive and create jobs decided to prioritize the development of a competitive domestic textile and leather sector to provide affordable, new and quality options of clothing and leather products to East African citizens,” the communiqué reads in part.
Infrastructure minister James Musoni, who represented President Paul Kagame at the summit said that Rwanda has not banned selling second hand clothes but it is promoting ‘Made In Rwanda’ to encourage Rwandans to use clothes that haven’t been used by other people.
“What we have done is to impose a certain tax on this but we haven’t banned them. We encourage local and regional production,” he told Sunday Times in Kampala.
Also see (link above right): EAC Gazette 26 February relating to tariffs on worn clothing imports
Musoni added that Rwanda is benefiting from different joint regional infrastructure projects, citing an example of the Kagitumba-Kayonza-Rusumo road and Ngoma-Nyanza regional road.
“When we take these collective decisions, it even becomes easier for resource mobilization because our development partners want to see projects fitting in that framework. All these concerted efforts directly impact on Rwanda’s development,” he said.
The summit directed the council of Ministers to mobilize resources required for implementation of new and ongoing priority infrastructure projects in the region.
Making a regional constitution
The Heads of state received a report of the council of Ministers on the progress of the constitutional-making process of the EAC Political Confederation and directed partner states to nominate constitutional experts and directed the council of ministers to fund the process of constitutional making.
The leaders took note of the progress on the development of the automotive industry in the region to reduce importation of used motor vehicles from outside the region and to make the region more competitive. They directed the council of ministers to expedite the process and report to the 20th summit.
Just last month, German carmaker Volkswagen announced that they are in the process of setting up a plant in Rwanda to assemble cars locally and roll out a mobility solution in the second quarter of this year.
The summit was attended by Ugandan President Yoweri Museveni, who is the EAC chairperson and Kenyan President Uhuru Kenyatta. Other presidents who attended the summit include; John Magufuli of Tanzania, and Salva Kirr of South Sudan.
Burundian Vice-President Gaston Sindimwo represented President Pierre Nkurunziza.
Read related news articles
New deal for African, US companies to partner under AfCFTA
African and US companies will soon enjoy a partnership of trading and investment building on provisions provided under the African Continental Free Trade Agreement (AfCFTA). This is according to a new Memorandum of Understanding signed between the AfCFTA Secretariat and Corporate Council on Africa – an American organisation devoted to fostering US-Africa business relations – with an aim to increase private sector support and involvement...
04 November 2023
Rwanda eyes stronger ties with Biden Administration
The Minister of Foreign Affairs and International Cooperation, Vincent Biruta, has said that Rwanda is ready to strengthen ties with the administration of the new President of the United States, Joe Biden. Biden was sworn-in on January 20, becoming the 46th President of the US. "We are ready to continue working with the new administration in strengthening existing relations between our two countries including levelling up existing...
25 January 2021
'Here's why the used clothing trade deserves more attention'
While friction over the ban of used clothing exports from the US to East Africa seems to have come to an end, some fundamental issues still remain, according to Shannon Brady and Sheng Lu from the University of Delaware. Their latest research throws up complex economic, social, legal and political factors linked with the trade in second-hand clothes and questions the effectiveness of preference programmes such as AGOA as a tool for economic...
11 December 2018
East Africa debate: Suspension of Rwanda’s AGOA benefits – What does it mean? [Video]
Barely weeks after the Trump administration partially suspended Rwanda’s benefits to export apparel duty-free to the US under the African Growth and Opportunity Act - AGOA, the government of Rwanda says that it remains committed to supporting any Rwandan trader who still wishes to access the US market. The government also says that it expects minimal effects from the suspension. Just what does this suspension mean?
22 August 2018
'Rwanda AGOA limitations signals era of reciprocal trading'
Last week, the Trump administration announced the withdrawal of benefits for Rwanda to export apparel duty-free to the US under the African Growth and Opportunity Act (Agoa). This is largely seen as a response to Kigali’s decision to ban second-hand clothes in its market. However, there is a larger trend at play here. We are in an era of trade wars and serious global disagreements as to what is deemed fair, or not, in trade practice and...
05 August 2018
Presidential Proclamation regarding Rwanda's AGOA eligibility
Presidential Proclamation to Take Certain Actions Under the African Growth and Opportunity Act and For Other Purposes Issued on: July 30, 2018 1. In Proclamation 7350 of October 2, 2000, the President designated the Republic of Rwanda (“Rwanda”) as a beneficiary sub-Saharan African country for purposes of section 506A(a)(1) of the Trade Act of 1974 (the “1974 Act”) (19 U.S.C. 2466a(a)(1)),...
31 July 2018
Trump upholds AGOA trade preference eligibility criteria with Rwanda
Today, President Donald J. Trump issued a proclamation regarding Rwanda that enforces the eligibility criteria established by Congress for trade preferences under the African Growth and Opportunity Act (AGOA). This proclamation suspends the application of duty-free treatment for all apparel products from Rwanda. “We regret this outcome and hope it is temporary,” said Deputy United States Trade Representative C.J....
31 July 2018
Rwanda: Government to pay taxes for affected AGOA exporters
To ensure Rwandan exporters are not significantly affected by the anticipated suspension of duty-free access to the US market under the AGOA framework, government has decided to take over the resultant tax obligations. This follows the move by the American government on March 31st announcing their intention to suspend the application of duty-free treatment to all African Growth and Opportunity Act (AGOA)-eligible goods in the apparel sector...
11 June 2018
'How the United States and Rwanda have fallen out over second-hand clothes' - BBC
US President Donald Trump's "America First" stance on global trade has hit Rwanda, by imposing tariffs on clothing exports from the tiny East African nation. The issue revolves around an obscure import, second-hand clothes, and Rwanda's refusal to back down from the fight. When did the dispute start? In March 2018, the US gave Rwanda 60 days' notice that it would be suspending the landlocked country from selling clothes to America...
28 May 2018
Trump versus Rwanda in trade battle over used clothes
Early last year, weeks after Donald Trump was sworn in as president, a little known American trade association filed a petition with the U.S. Trade Representative. That seven-page letter set Africa in the cross-hairs of the new administration’s ‘America First’ trade ideology, pitting the world’s largest economy against tiny Rwanda over an unlikely U.S. export: cast-off clothes. In March, the USTR warned Rwanda it would...
24 May 2018
'Global business of secondhand clothes thrive in Africa'
Heaps of clothes, scorching heat and choking dust, hawkers chanting prices, competing for the attention of shoppers, who haggle to get as many clothes at the lowest cost possible. In crowded markets and on sidewalks of African towns and cities, shoppers can turn up Tommy Hilfiger jeans or a Burberry jacket for a fraction of the price in London’s Regent Street or New York’s Fifth Avenue. It is a common scene across Africa, with Ghana,...
26 April 2018