Uganda clothing conundrum
Uganda (together with Tanzania and Rwanda) are currently subject to an out-of-cycle review of eligibility for preferential trade terms with the US under the African Growth and Opportunity Act (AGOA). The eligibility review has been brought about by the decision to ban the import of used clothing by member states of the East African Community, in their struggle to protect local producers and supply chains from cheap imported goods. Trading companies from the US have complained that the ban contravenes the fundamental principles of AGOA, which requires that African states should attempt to remove barriers to trade and investment with the US in order to qualify for preferential access to the US market. However, the US is not a particularly important export market for Uganda (or the other two countries affected by the review) and it appears unlikely that the import ban on second hand clothing will be reversed anytime soon, or solely on the basis of the threat of or actual loss of duty free access to the US market.