In March 2018, the USTR had warned Rwanda it would lose some benefits under the African Growth and Opportunity Act (AGOA), America's flagship trade legislation for Africa, in 60 days after it increased tariffs on second-hand clothes to support its local garment industry. The row is further straining Washington's relations with Africa at a time when it is being aggressively courted by America's global competitors, not least China.
The Rwanda government is trying to attract companies targeting the export market, like US designer Kate Spade which assembles high-end handbags in Rwanda. This strategy nation has flourished elsewhere in Africa under AGOA, with duty-free exports from the continent to the US market almost quadrupling to over $1 billion since the law was enacted. The ultimatum from the office of the USTR, however, has thrown up a potential roadblock to further growth.
