United States has warned leaders of the East African Community (EAC) following their plan on ban of used clothes import by 2019 as the new move is considered as violates to the conditions that was set to expand trade and investment in the continent under the African Growth and Opportunity Act (AGOA).
EAC comprises of Uganda, Kenya, Tanzania, Rwanda, Burundi and South Sudan. The countries agreed in 2016 for the ban of importation of used clothes by 2019, which mean in three years of time and the move is a part of the EAC Vision 2050 along with the Industrialization Policy that will enhance manufacturing sector in the region.
Currently manufacturing sector contributes just 8.7% to the GDP of the region and this is aimed to increase to 25% by 2032.
Meanwhile, it is learned the office of the US Trade Representative (USTR) will be reviewing the trade benefits to Tanzania, Uganda and Rwanda.
Head of economic and regional affairs at the Africa Bureau of the US State Department Harry Sullivan said very recently leaders of the three countries would be meeting them on the issue and they are asked to decrease tariffs to their pre-2016 levels and commit not to phase out the export of used clothing.
Sullivan added United States is keeping a close watch to the moves of EAC and the leaders will be meeting next week.
Tanzania, Uganda and Rwanda have raised taxes on such used clothes lately and have also offered incentives to manufactures who are looking ahead to invest in the local textile sectors.
