East African countries may have to pay penalties to the American government for stopping imports of second hand clothes.
The US has termed the EAC’s resolve to ban the imports as a blockage of free trade, saying that Rwanda, Tanzania and Uganda have until next week to reverse their decision, or else the US will have no choice but to impose the penalties. The three countries will be meeting next week to discuss whether they will proceed with the ban or not. Two years ago the EAC agreed to imposed the ban by 2019, but Kenya has since pulled out of that agreement, following the US’s threats that it will end Kenya’s eligibility for duty free clothing exports to the US under the AGOA.
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