US plans to stop the duty-free access to the Rwandan textile imports due to African refusal to lower trade obstacles for American-made textile and shoes. This suspension is applicable for all AGOA products from Rwanda within 60 days, the trade representative of US remarked.
USTR conducted a review “out of cycle” which can determine eligibility of Tanzania, Rwanda, and Uganda to continue trade benefits under African growth and opportunity act. AGOA signed by president bill Clinton rewards the African nation which undertakes different economic, social and governance reforms along with duty- free market permission.
Review given by USTR was for the response to complaints by US textile industry, based on a decision taken by African nations to ban the imports of shoes and used clothing. The US based secondary materials and recycled textile association depicted that this ban will impose significant hardship to the US used- clothing industry. The US exports around %330,000 textile and clothing to Rwanda in the year 2016 and imported around $460,000 coffee and tea beverages.
Rwanda is focusing on overall development in business after the genocide that took place in 1994. Country ranked second, has created maximum business-friendly reforms in last 15 years. US will not stop AGOA privileges for Uganda and Tanzania as each works for prohibiting tariff rates for importing clothing and footwear. Donald Trump wishes to build in fair trade policies and fair trade communications. He often expresses to push for the reciprocal relationships between trading partners.