US still trying to convince Rwandan President Paul Kagame not to ban mitumba

Rwandan President Paul Kagame has stated that his country will proceed with the ban on used clothes despite threats by the United States to review trade benefits to Rwanda, Tanzania, and Uganda.Negotiations between Rwanda and the United States to review the US African Growth and Opportunities Act (AGOA) to ensure continued duty-free access of Rwandan commodities to the US market are at an advanced stage.Rwanda Development Board chief executive officer Emmanuel Hategeka said they want to ensure the country is not locked out of the trade window.As Rwanda and other East African Community (EAC) states decided to phase out and eventually ban import of second hand clothes, the United States conducted an out-of-cycle review on the eligibility of Rwanda under AGOA in July this year.The move follows a decision by the six-nation East African Community – Kenya, Uganda, Rwanda, Burundi, Tanzania and South Sudan – to fully ban imported second-hand clothes and shoes by 2019, arguing it would help member countries boost domestic clothes manufacturing.As part of the move, Rwanda last year increased taxes on used clothes from $0.2 to $2.5 per kilogramme, while taxes on used shoes increased from $0.2 to $3 per kilogramme.The Rwanda Development Board Chief Operating Officer, Emmanuel Hategeka, said that they are in talks with the US to see to it that Rwanda is not locked out of the trade window.Exports from the three EAC nations — Rwanda, Tanzania and Uganda — through the AGOA was $43 million in 2016, whereas US exports into the three nations was $281 million. (DS).