In February 2015, the 16th Summit of East Africa Community (EAC) Heads of State sitting in Nairobi
received and adopted a report by the EAC Secretariat on banning the importation
of second-hand clothing, bags and shoes. The Summit issued a joint statement
directing the Council of Ministers to study modalities for the protection of
regional textile and leather industries by banning the importation of
second-hand clothes and shoes.
In March 2016, the 17th Extra-ordinary Summit of the EAC Heads of State
at Arusha unanimously decided to ban the importation of second-hand clothing,
bags, shoes and other leather products by 2019.
The argument was that the move would boost local industries, create
jobs, and instill a sense of pride as opposed to putting on someone else's used and
discarded clothing. They further argued that the practice was degrading,
undermining the pride of Africans, and a source of being looked down upon by
the West.
A few days later, Uganda's Minister of Finance, Matia Kasaija proposed
increasing the rate of the environmental levy imposed on second hand clothes from
15% to 20% of the cost, insurance and freight (CIF) value. Around the same
time, Kenya's Uhuru Kenyatta met with the Association of Mitumba (second hand
clothes) Importers in Kenya where he guaranteed to them the continuous flow of
Mitumba uninterrupted.
In June 2016 Uganda's Minister of Trade, Amelia Kyambadde told visiting
EALA members that Uganda had decided to go slow on the ban on used
clothes. She further disclosed that the
ban would be a gradual process as the country develops its textile and leather industry.
In September 2016, the USA Ambassador, Deborah Malac paid a courtesy call
on the Speaker of Parliament and warned her that the proposed ban on
importation of second-hand clothes was posing a risk on the African Growth
Opportunity Act (AGOA) arrangement.
In May 2017,Kenya took a bold stand when it declared that it would not ban
importation of second-hand clothes. It
argued that much as it would make efforts to develop and promote its local
textile industries, it would allow the continued importation of the much more competitive
and consumer friendly second-hand clothes.
During the same month, the EAC Secretariat presented a report in which it
was proposing a tax rise on importation of second-hand clothes from 25% to 50%.
In the same report, it was disclosed
that the region was spending US$ 350M on importation of second-hand clothes.
In June 2017, the parliaments of Tanzania and Uganda voted to approve a
budgetary provision doubling import duties on second-hand clothes from US$ 0.2
per Kg to 0.4 per Kg. On its part,
Rwanda increased import duty from US$ 0.2 per Kg to US$ 2.5 per Kg.
Consequently, the office of the US Trade Representative (USTR) has disclosed
that it was reviewing the eligibility of Uganda, Tanzania and Rwanda for
AGOA. In 2000 the AGOA was signed into
law. It is meant to promote trade and investment in Sub-Saharan Africa.
Under AGOA, duty free treatment is given to certain products as well as
the preferential treatment of certain textiles and apparel articles. During 2016, Uganda, Tanzania and Rwanda
combined exported a total of US$ 43M worth of goods to the USA duty free under
AGOA. Kenya alone exported US$ 394M
worth of textiles and apparel to the USA under AGOA. In return, the USA exported to the EAC region
US $281M worth of goods under AGOA.
USTR's review of Tanzania, Uganda and Rwanda's eligibility for AGOA has
the risk of making them lose out on duty free access to the USA market. The
other eligibility requirements are good governance, human rights, democracy,
and rule of law. AGOA requires the
President of USA to terminate the designation of a country as a beneficiary if
it is not meeting eligibility requirements. Currently, the US President is the no nonsense,
Donald Trump.
In August 2015, the parliament of Zimbabwe unanimously blocked the government's
move to ban the importation of second-hand clothes. It described the move as being insensitive to
the poor and that it would make the ordinary people to go naked. In 2015 alone, Uganda imported 1261 tonnes of
worn second-hand clothing from the USA. Second-hand clothes are a source of livelihood
for millions of impoverished residents of EAC. Millions are employed and dressed by this
sector since local textile industries are almost non-existent. Even a number of the rich and the elite policy
makers stealthily encroach on these second-hand clothes because of their
superior quality.
The governments of EAC earn a lot of the much-needed tax revenue from importation
of the second-hand clothes. Even the
millions of Museveni's refugees can only be properly clothed in these
second-hand clothes. It is not only the second-hand clothes, bags and shoes
that are sustaining the economies of the EAC States and the livelihoods of its residents.
Second-hand cars, furniture, electronics, construction machinery, farm
machinery, industrial machinery, motorcycles, bicycles, toys, beddings,
military equipment like tanks, artillery pieces and war planes are all
second-hand.
The policy makers only console themselves by claiming that the military
equipment is 'overhauled'. How come they
don't lose pride by importing military equipment that was used during World War
II, the Middle East conflicts, the conflicts in the Balkan and Afghanistan? The
Anti-riot police vehicles that were used by Apartheid South Africa have been imported
by Museveni and modified with mounted machine guns (MAMBAS) for use to suppress
Ugandans.
What about the tanks from China that were used to crash to death student
protesters at Tienanmen Square! The same used military equipment imported by
African governments is responsible for the displacement of their nationals into
refugee camps and risky and treacherous journeys into death traps across the
Sahara and the Mediterranean Sea.
Maybe they want to protect industries of cheap and low quality textiles
from their new colonial master, China.
INFORMATION IS POWER AND DEFIANCE IS THE WAY TO GO.
Change of guards blog
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