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Bill for extension of third-country clause in AGOA introduced
Jul '11
A Bill has been introduced in the US Congress seeking extension of the current African Growth and Opportunity Act (AGOA) regulations on third-country fabric till 2015. The clause of third country fabric in the AGOA is scheduled to expire in September 2012.

If the bill is passed, it would largely benefit the garment export sector of AGOA beneficiary African countries.

The Bill acquires urgency as major international buyers generally plan their sourcing at least six to twelve months in advance. The early passage of the Bill would remove the currently prevailing uncertainty about the future of the garment industry in AGOA beneficiary countries.

From the US perspective, the proposed legislation is not very significant as garments from African countries form only a small fraction of the overall US apparel imports. But, the provision is an important lifeline for garment exporters from countries like Kenya and Lesotho.

Hence, at the recent AGOA meeting held in Lusaka, the African Clothing and Textile Industries Federation (ACTIF) and other AGOA countries had asked for the extension of third-country clause.

The proposed legislation also seeks to include the newly-independent Republic of South Sudan in the list of AGOA-eligible countries.

Fibre2fashion News Desk - India

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