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US reviews AGOA benefits

The US is reviewing trade benefits to Rwanda, Tanzania and Uganda under the African Growth and Opportunity Act (AGOA) after a complaint by US interests about an East African ban on imports of used clothing.

The review was in response to a petition filed by the Secondary Materials and Recycled Textiles Association (SMART), which complained that the ban imposed significant hardship on the US used-clothing industry and violated AGOA rules.

Through the review, the US will assess the allegations contained within the SMART petition and review whether Rwanda, Tanzania, and Uganda are adhering to AGOA's eligibility requirements.

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.

AGOA provides eligible sub-Saharan countries duty-free access to the United States on condition they meet certain statutory eligibility requirements, including eliminating barriers to US trade and investment, among others.

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.

 
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