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Rwanda’s AGOA Benefits to Be Suspended

Tuesday, April 03, 2018
Sandler, Travis & Rosenberg Trade Report

Based on the results of an out-of-cycle review of the eligibility of Rwanda, Tanzania, and Uganda for trade preferences under the African Growth and Opportunity Act, the president has determined that Rwanda is not making sufficient progress toward the elimination of barriers to U.S. trade and investment and is therefore out of compliance with AGOA eligibility requirements. Consequently, the president has notified Congress and the government of Rwanda of his intent to suspend in 60 days duty-free treatment for all AGOA-eligible apparel products from Rwanda.

The president believes suspension of these benefits, instead of termination of Rwanda’s status as an AGOA beneficiary, would allow for continued engagement with the aim of restoring market access and thereby bringing Rwanda into compliance with the AGOA eligibility requirements.

Additionally, the president has determined not to suspend AGOA benefits for Tanzania and Uganda because each has taken steps toward eliminating prohibitive tariff rates on imports of used clothing and footwear and committed not to phase in a ban of these products. The U.S. will continue to monitor whether Tanzania and Uganda implement these commitments and demonstrate compliance with all eligibility requirements under the AGOA.

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