U.S. enters bilateral investment treaty with Rwanda

The Bush administration on Feb. 19 signed a bilateral investment treaty with Rwanda.

This is the first bilateral investment treaty (BIT) between the United States and a sub-Saharan African country since 1998. Similar treaties exist with Cameroon, Congo, Mozambique and Senegal.

The United States-Rwanda BIT will reinforce the Rwandan government's achievements in rebuilding the Rwandan economy after the 1994 genocide, said the White House Office of Communications in a statement. The Rwandan government has opened its economy, improved its business climate, and embraced trade and investment as a means to boost economic development and help alleviate poverty. As a result, the Rwandan economy has grown by over 9 percent per year since 1995.

The White House also noted that several large U.S. companies now conduct business with Rwandan firms and are exploring trade-related initiatives with the Rwandan government.

According to the White House, bilateral trade between the United States and Rwanda increased 40 percent in 2007, totaling about $29 million. U.S. imports from Rwanda were valued at $13 million during this period, up 43 percent from 2006. U.S. exports to Rwanda reached $16 million in 2007, up 37 percent over 2006.

Products from Rwanda are eligible for duty-free access to the United States under the African Growth and Opportunity Act and the Generalized System of Preferences. 

Source: American Shipper