WTO Trade Policy Review of Rwanda

Statement of the US Ambassador
September 28, 2004

Thank you, Madame Chair. The United States welcomes the delegation from Rwanda to its first Trade Policy Review. The Secretariat and the government of Rwanda have given us a good basis on which to work - their reports are excellent, as always, and Neil's thoughtful commentary about Rwanda's trade policy has given us a very good start.

We are especially pleased that Minister Nshuti will be here from Kigali to participate. His presence here demonstrates the seriousness with which Rwanda has approached this trade policy review process as well as its commitment to WTO work. Please convey my appreciation, and that of Ambassador Zoellick, for the substantial personal effort that he invested in helping to move the Doha Development Agenda forward. As the chair of the African Union's Trade Group, he played an instrumental role in the consultations that led to the July Framework Agreement. I saw first-hand the confidence that African and other Member country representatives placed in him during the discussions here in late July and I have admired your government's constructive approach to resolving issues in the Doha process.

With the framework agreement now in place, we must now move beyond discussions about the blueprint and start putting together the actual components of a new multilateral trade agreement. This will require all Members to step forward and begin negotiating details. As we enter this new stage of the negotiations, we look forward to continuing our work with our Rwandan colleagues, including my colleague Ambassador Rugwabiza, to keep the Doha Development Agenda on a path toward progress.

Madame Chair, this year marks the tenth anniversary of the 1994 Rwanda genocide, which President Bush has called "one of the most horrific events of the twentieth century." As we reflect on the unfathomable human toll inflicted on Rwanda during that dark period, we get some sense of the enormous challenges that the Rwandan government has faced and continues to face as it seeks to rebuild the country and reinvigorate its once-shattered economy. We stand with the government and the people of Rwanda as they move forward with the process of reconciliation and reconstruction.

The aftermath of the genocide also provides the backdrop for this review of the Government of Rwanda's trade policy. As the Secretariat's report notes, Rwanda still suffers from the social and economic consequences of the genocide, including a lack of infrastructure and skilled human resources. Given that starting point, Rwanda has made considerable progress in a number of areas, especially in getting its economic house in order. In recent years, it has liberalized foreign exchange and interest rates, eliminated export taxes, lowered tariffs, and made plans for the privatization of key sectors, including coffee, tea, and telecommunications. As the report indicates, thanks to these and other economic reforms, by 2000 real GDP had returned to its 1990 level - which is no small accomplishment. Moreover, economic growth rates in the last few years have been impressive. We urge the government of Rwanda to continue its efforts to pursue macroeconomic and structural reforms, in cooperation with the International Monetary Fund.

With that background in mind, we see this trade policy review as especially timely. To its credit, the Government of Rwanda has taken the opportunity of this review to re-examine its trade policies and their effect on economic growth and development and to rededicate itself to the reforms necessary to attract new investment and diversify the economy. We note, for example, the government's intent to establish a National Committee on the WTO to study trade issues related to the WTO and advise the government accordingly. This is a welcome move that - along with the advisory Foreign Trade Board that is to be set up under Rwandan law - should help the government to analyze its international trade policy, better represent its national interests in the WTO, and participate more effectively in the multilateral trade policy process. As the National Committee on the WTO begins its work, it will surely find the excellent report prepared for this review by the WTO Secretariat to be a useful resource.

Madame Chair, the United States has submitted a short list of questions seeking clarification and elaboration on some of the points made in the Government's and Secretariat's reports. The questions largely relate to the Government of Rwanda's actions or intentions in several areas targeted for reform and to the Government's implementation of its commitments under various WTO agreements.

I would like to highlight a few of the areas addressed in these questions and make some observations about U.S.-Rwanda trade and Rwanda's trade-related technical assistance needs.

One of the topics addressed in our questions is Rwanda's participation in regional trade agreements. We note that Rwanda joined the Free Trade Area of the Common Market of Eastern and Southern Africa (COMESA) in January of this year. This was a welcome development and should help Rwanda to increase its two-way trade with COMESA members. At the same time, Rwanda is also a member of several other trade-related regional organizations and has indicated its intent to apply for membership in the Southern African Development Community (SADC) and the East African Community (EAC). As Rwanda moves forward with its involvement in these regional organizations, it will need to consider the challenges and complexity of active involvement in several overlapping trade regimes and set its priorities accordingly.

The Secretariat's report notes the government's ongoing work, with technical assistance from WIPO, to update its legislation protecting intellectual property rights. We welcome this initiative and encourage the government to continue its efforts in this area. The United States is willing to review the pending legislation and provide written comments on it in order to help ensure that it is consistent with TRIPS obligations. We would also like to note our appreciation of the government's cooperation with the United States on enforcement of a recent trademark infringement case in East Africa involving counterfeit shoe polish.

United States two-way trade with Rwanda is modest, amounting to $10.5 million in 2003. We remain optimistic, though, that these levels will rise in coming years as Rwanda makes more effective use of its eligibility for preferential trade benefits under the U.S. African Growth and Opportunity Act (AGOA). In March of 2003, Rwanda instituted the necessary customs procedures to qualify for AGOA's apparel benefits. There is also great potential for new and non-traditional agricultural exports from Rwanda under AGOA. In 2001, Rwanda exported $265,000 of pyrethrum-based organic insecticides to the United States under AGOA. Although trade in that product has since dropped off, pyrethrum remains a product area of great promise for U.S.-Rwandan trade.

The United States took note of the call in the Secretariat's report for special attention to Rwanda's technical assistance needs. We are pleased that Rwanda is being reviewed for possible participation in the Integrated Framework program and support the government's call for the Diagnostic Trade Integration Study to be completed as soon as possible. For its part, the United States is pleased to have provided over $7 million in trade-related technical assistance to Rwanda in 2002-2003, funding activities in trade facilitation, export promotion, agricultural trade, and other areas. We are also providing assistance on AGOA and other trade matters via the USAID-funded East and Central Africa Global Competitiveness Hub in Nairobi and are considering ways to help Rwanda to analyze its interests in trade in services and to participate more effectively in the ongoing GATS negotiations.

In closing, the United States appreciates the opportunity to participate in this dialogue on Rwanda's trade policy. We look forward to further discussions on trade matters with the delegation from Rwanda - in the context of this review, our bilateral relationship, and here at the WTO. Thank you.