Trump implements trade threat against Rwanda

President Donald Trump has suspended Rwanda’s right to export
clothing duty-free to the United States over Kigali’s decision to
increase tariffs on imports of used clothing and footwear, the U.S.
Trade Representative’s office said.

The move, initially threatened in March and confirmed on Monday, was seen by many in Washington and Africa as

foreshadowing how the Trump administration planned to apply its ‘America First’ trade ideology on the

continent.

In spite of the suspension, Rwanda will maintain its other duty-free benefits under the African Growth and

Opportunity Act (AGOA), America’s flagship trade legislation for Africa.

“We regret this outcome and hope it is temporary,” Deputy USTR C.J. Mahoney said in a statement, adding that

the move would affect about 1.5 million dollars in Rwandan exports, or about three percent of its total

exports to the U.S.

Clare Akamanzi, CEO of the Rwanda Development Board, told journalists
that companies producing garments for export were already approaching
European buyers.

“We expect some Rwandan companies to be affected,” she said.

“We have a plan for them. We have engaged them and we will be helping with the transition to new markets.”

Akamanzi said the government would also assist them financially, though she declined to give details.

On the streets of Kigali, where residents say the increased duties on used clothing imports have driven up

prices, condemnation of the U.S. decision was muted.

“The ‘Made in Rwanda’ clothes are expensive,” said Jean-Marie Nsengimana, a hotel worker and father of four.

“It used to be cheaper with second-hand clothes. Rwanda should try and negotiate with the U.S.”

Kenya, Tanzania, Rwanda and Uganda all increased duties on used clothing and shoes in 2016 to nurture their

local textile industries.

But in March 2017, the Secondary Materials and Recycled Textiles
Association (SMART), a trade group representing U.S. used clothing
exporters, filed a petition, arguing that the increase violated AGOA.

Though they contested SMART’s assertions, Kenya, Tanzania and Uganda backed down and agreed to roll back the duty increases.

But Rwanda refused and, as a result, joined the ranks of Canada, Mexico, the European Union and China, all

of which have been the targets of Trump’s aggressive trade tactics.

Andrew Mold, head of the UN Economic Commission for Africa’s East
Africa office, said he was disappointed by the USTR’s announcement.

“We know the current U.S. administration has a different position on international trade than previous

administrations, particularly with countries with which the U.S. sustains large trade deficits,” he said.

“But in this case the U.S. actually has a trade surplus with Rwanda.” (Reuters/NAN)