AGOA Benefits Unavailable for Rwandan Apparel as of July 31
Rwandan apparel won't be eligible for African Growth and Opportunity Act benefits as of July 31, the White House announced July 30, because Rwanda continues to block imports of used clothing from the West. Some African countries feel that very cheap used clothing has undermined their domestic clothing manufacturers. The imposition of tariffs on Rwandan apparel was first announced in March but did not take effect immediately (see 1803290034).
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“We regret this outcome and hope it is temporary,” Deputy U.S. Trade Representative C.J. Mahoney said in a press release from the Office of the U.S. Trade Representative following the announcement about AGOA benefits. “But if the AGOA eligibility criteria are to have any meaning, they have to be enforced -- particularly where, as here, other AGOA members took action in order [to] remain in compliance. The President’s action today is measured and proportional. It suspends AGOA benefits for a class of imports that totaled $1.5 million in 2017, which accounts for approximately only 3 percent of Rwanda’s total exports to the United States. 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. We look forward to working with Rwanda to resolve this issue so that benefits in the apparel sector may be restored.”