To ensure Rwandan exporters are not significantly affected by the anticipated suspension of duty-free access to the US market under the AGOA framework, government has decided to take over the resultant tax obligations.

This follows the announcement of American government to suspend the application of duty-free treatment to all African Growth and Opportunity Act (AGOA)-eligible goods in the apparel sector for Rwanda.

The suspension would take effect in 60 days (from March 31) in case Rwanda maintains its policy on used clothes, commonly known as Cagua.

However, the Government is setting up an adjustment facility to pay taxes imposed on the exporters for the next one year to ensure minimal disruption to the businesses.

The overall intention is to identify alternative markets such as Europe, Asia and the African continent that can allow duty free access.