The United States has assured sub-Sahara African countries that the African Growth and Opportunity Act (AGOA) will continue and that the US is committed to a stronger and more sustainable relationship with Africa through free, fair and reciprocal trade.
US AGOA imports from Rwanda, Tanzania, and Uganda totaled 43 million dollars in 2016, up from 33 million dollars in 2015. US exports to Rwanda, Tanzania and Uganda were 281 million dollars in 2016, up from 257 million dollars the year before.
One of the major reasons for the booming garment exports from the African nations is investment by Bangladeshi garment makers to avail of duty privilege under the AGOA. In recent years, nearly a dozen Bangladeshi garment makers have invested either in joint ventures or individually in different African countries, especially Ethiopia and Kenya.
Enacted in 2000, the act allows 39 eligible sub-Saharan Africa countries to export certain goods to the US market duty-free. It was renewed in September 2015 and will expire in 2025.
Nevertheless East African countries are embroiled in trade disputes with the US over the imports of secondhand clothes.
While the East African Community member states had agreed to ban such imports by 2019, Kenya reneged on the agreement to safeguard its privileged access to the US market.
Tanzania, Uganda and Rwanda however maintained the import ban to protect their textile industries.