Responding to the US decision to suspend duty free access for apparel exports from Rwanda under the African Growth and Opportunity Act (AGOA), the government has assured all possible help to support textile manufacturers from the country.
AGOA is a U.S. trade act that enhances market access to the US for qualifying sub-Saharan African countries.
The Rwandan government is considering promoting local industries and production in order to create job opportunities for country people. Furthermore, textile manufacturers were advised to look for markets in Europe and Asia where it enjoys preferential trade agreements.
Rwandan Minister of Trade and Industry Vincent Munyeshaka discussed the issue with manufacturers in a meeting held recently.
US President Donald Trump administration last week suspended the facility provided to the country. The ban would impact around 3 per cent of the country’s total exports to the US. The decision came after a trade dispute between two countries related to US exports of used clothing.
East African nation’s decision to raise tariffs on second-hand clothing imports, in order to promote local manufacturing capacity in the garment and other industries, irked US.
East African Community (EAC) in 2016 comprising 6 nations named Kenya, Rwanda, Uganda, Tanzania, Burundi, and South Sudan a ban on the importation of used clothes by 2019.
