UNDERSTANDING THE USED CLOTHES BAN IN THE EAC

An Appeal to President Trump.

The East African Community (EAC) in a bid to improve the economic livelihood of the citizens and the region decided to phase out imports of used clothing while boosting the local cotton and textile industry. The countries in this region like many other African nations import used clothing and shoes from mostly Western countries. In effect, African countries serve as the dumping ground of no-longer-needed clothing from the West as well as electronics and other hazardous waste.

Why Ban Used Clothing?

This relationship (importation of used clothing from the West by African countries) saves the West from having to properly dispose of these items at a cost. It also harms the local cotton and textile industry. But is that the only reason why importation is bad. No, there is more:

  1. Imports = foreign exchange leaving a country’s shores and going to exporting country
  2. Exports = foreign exchange coming into exporting country from importing country
  3. When African states import used clothing from the West, they serve as a disposal ground for used clothing from the West
  4. The West receives money from African states when they dump their used clothing in Africa

It’s a win-win situation for Western exporting countries and lose-lose from the African importing countries. There needs to be a leveling of the playing field.

The Response From The U.S.

The response from the US government to the decision of the ECA is as follows:

USTR Announces AGOA Out-of-Cycle Review for Rwanda, Tanzania, and Uganda

Washington, DC – The Office of the U.S. Trade Representative today announced the initiation of an out-of-cycle review of the eligibility of Rwanda, Tanzania, and Uganda to receive benefits under the African Growth and Opportunity Act (AGOA).

The launch of the review is in response to a petition filed by the Secondary Materials and Recycled Textiles Association (SMART), which asserts that a March 2016 decision by the East African Community, which includes Rwanda, Tanzania, and Uganda, to phase in a ban on imports of used clothing and footwear is imposing significant economic hardship on the U.S. used clothing industry.

Through the out-of-cycle review, USTR and trade-related agencies will assess the allegations contained within the SMART petition and review whether Rwanda, Tanzania, and Uganda are adhering to AGOA’s eligibility requirements.

A public hearing will take place July 13, 2017 in Washington, DC. A Federal Register notice containing information related to this review is available at http://www.regulations.gov under docket number USTR-2017-0008.

This is known as soft power—meant to alter the behavior of African countries in favor of the U.S.’s economic interest which on other issues may be okay but in this case in particular is devoid of fairness, morality and reciprocity.

How does phasing in a ban on imports of used clothing and footwear, impose significant economic hardship on the U.S. used clothing industry? Have you considered the impact of this so-called industry on African industry? Have you considered how one-sided this relationship has been in favor of the U.S. all these decades—to the detriment of most sub-Saharan African nations?

In non-politically correct language, this is plain bullying. Paraphrased, what the U.S. government is saying, by giving this questionable petition a hearing and review is, “if you will not allow us to dump our old clothes in your countries, then we do not want to trade with you or offer you access to our markets”. This is incredibly childish of those who sent the petition. Africa is neither a colony of the West nor a dumping ground for used clothing. It is a group of independent states who are equal to any other and have the same rights to have the dreams and aspirations of their peoples actualized without fear. African governments should stand together and refuse the carrot and stick strategy—if they ever want to taste prosperity for their masses.

According to Mukhisa Kitui, the Secretary General of the United Nations Conference on Trade and Development (UNCTAD), adherence to the ban will create domestic demand for textiles and increase the share of manufactured exports.

“My home country Kenya, for example, imports Boeing planes from the US at a very high cost, so the reciprocity on trade should not be at the level of used clothes.

Therefore, East Africa should stand with one voice and resist importation of used clothes into the region,” he said, during the second Manufacturing and Business Summit at the Kigali Serena Hotel recently.

The forgoing was taken from here.

The following are the comments of an ex-president of Africa’s largest economy:

Speaking on the sidelines of the ongoing Afreximbank Annual General Meeting in Kigali, Obasanjo said, as long as the move was in the country’s best interest, Rwanda should not be cowed.

“The country should do what is in their best interest and be unafraid to stand by it. The continent should always ask itself what is in our best interest. We should not be afraid to cut some ties if it is in our best interest,” he said.

EAC member countries have moved to phase out importation of used clothes and shoes as part of an industrialisation policy to give rise to the growth of the local textile industry.

As part of the move, Rwanda last year increased taxes on used clothes from $0.2 to $2.5 per kilogramme, while taxes on used shoes will increase from $0.2 to $3 per kilogramme.

In the 2017/18 Budget, the Government eased taxes on inputs to the Made-in-Rwanda campaign, which is expected to facilitate the growth of the local textile industry

Responses from EAC

In the face of threats, Rwanda continues to stand firm by the decision of the EAC with respect to the proposed ban but Kenya has retreated. The reason for this stance by Kenya is probably because of the volume of trade between the U.S. and Kenya. It remains to be seen how other members of the EAC will act in the face of U.S. threats.

Africa needs more Kagame’s who will say what they mean and mean what they say—sticking to their word—no matter the threat.

President Donald J. Trump

In the remarks of President Donald J. Trump in his inaugural address, to the America public and to “the people of the world”, he stated unequivocally that, “We will seek friendship and goodwill with the nations of the world – but we do so with the understanding that it is the right of all nations to put their own interests first“.

Mr. President, the response of the US government to the decision of the EAC in exercising the right to put their own interests first by phasing in a ban on the importation of used clothing is distasteful. It does not show that your administration seeks the good will of the EAC and the greater AU. The second hands goods from your country has hurting local industry across generations. It is a key barrier to the cotton planting in the area. It takes away much needed foreign exchange and in exchange provides citizens in this area with sub-standard clothing and shoes. There should be a way to push for America’s interests without harming that of other nations as some of your predecessors did.

I for one am happy that you won the election because I believe it means good things for our globe. But this step is a wrong step because it shows that you’d like to continue the perpetuation of the impoverishing of the world’s poorer populations. Please do not let this continue.

Do not allow the debris from the deep state to influence your policies towards Africa. Already there are news headlines such as, “Was Agoa always a poisoned chalice from the US?”. This is not how you want your administration to be remembered in academia and by the people of the world—specifically Africa. Harming African economies and initiatives will not promote growth thus making Agoa an oxymoron. Allow righteousness and justice to prevail. On the 13th of July when the review is being done, influence it for good. God bless America and the nations of Africa and the World.

.

Advertisements