CEO DATELINE - Association wins Trump backing in fight over used clothing
CEO DATELINE - Association wins Trump backing in fight over used clothing
- July 31, 2018 |
- LORI SHARN BRYANT
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Apparel made in Rwanda can no longer be exported duty-free into the United States, the latest development in a trade war involving the African country and a U.S. association.
Aiming to nurture their own textile industries, five countries in the East African Community increased duties on used clothing and footwear in 2016 and adopted a plan to phase in an import ban.
The Secondary Materials and Recycled Textiles Association (SMART), based in Abingdon, Md., objected with the Office of the U.S. Trade Representative. That prompted a review of whether the countries could still benefit from trade preferences under the African Growth and Opportunity Act, which Congress passed in 2000.
Kenya, Tanzania, Uganda and Burundi revised their policies on used clothing imports, but Rwanda did not lower its tariffs. On July 30, President Donald Trump announced that Rwanda's duty-free access to the United States, for apparel exports only, would be suspended.
In 2017, Rwanda apparel exports to the U.S. totaled $1.5 million, approximately 3 percent of all the country's exports to the U.S.
"We regret this outcome and hope it is temporary," Deputy United States Trade Representative C.J. Mahoney said in a statement. https://bit.ly/2v65Ypr