Question

How the American global cultural brand created the mitumba market?

Answer 1

AGOA demonstrates the power of U.S. trade policy to bring about significant change in Africa through measures that, . Specifically, AGOA allows for eligible African countries to export a long list of goods to the United States without paying the import tariffs that most countries must pay and without being subject to import quota restrictions.

At the same time, however, AGOA has resulted in an increase in exports in some key products that have been massive when measured by African standards.

For example, apparel exports, which have historically been an important stepping stone in the process of development for virtually all countries, increased on average by 42 per cent under AGOA.

As soon as one considers the short-term and long-term good will, as well as trading relationships, that AGOA has nurtured between the U.S. and Africa, it has undoubtedly been an example of a win-win scenario for both the United States and Africa.
Cheap clothes for African consumers
It is the culture of the Americans to overuse a cloth. Currently, a significant fraction of the used clothing disposed of by Americans through their donations to thrift shops and parking lot boxes are not sold in the U.S., but are shipped to Africa. Since these clothes are sourced for free, they serve as incredibly cheap sources of clothing in these countries.
This serves to benefit African consumers, although it historically had a negative impact on African apparel production that was serving the domestic market.
Some countries, such as South Africa, have implemented near bans on used-clothing imports as a result. Whether restriction of used-clothing imports is a good policy for African countries, therefore, is open to debate. The reduced used-clothing imports may well be replaced in the future by new clothing imports from Asia.

However, what is deeply concerning is that when the members of the East African Community (EAC), a regional trade agreement similar to NAFTA, decided to increase the restrictions on used-clothing imports, the current U.S. administration responded by threatening to remove AGOA access for them.

As a result of this threat, Kenya quickly reversed its decision. Then, in February, Rwanda, Uganda and Tanzania decided to end their proposed ban on used-clothing imports too. However, because Rwanda is maintaining significant tariffs on used-clothing imports, the U.S. has decided to suspend Rwanda’s AGOA access for apparel exports.

Used-clothing exports from the U.S. to all EAC countries combined had an all-time peak of US$43 million in 2012, which is 0.003 per cent of American exports. This is a truly negligible industry from the American perspective. Its trifling economic value is not surprising as this industry essentially takes items that might otherwise go to the garbage and ships them to Africa.

However, the United States is indicating that a major foreign policy goal on the African continent is the defence of its ability to dispose of second-hand clothing there.

The top U.S. foreign policy goals in Africa apparently no longer relate to human rights or democratic freedoms, but to protecting tiny, marginal American industries.