Home / Knowledge / News / Apparel/Garments / Apparel makers seek AGOA fabric rule extension
Apparel makers seek AGOA fabric rule extension
06
Apr '12
Apparel manufacturers in Africa are unhappy over the apathetic attitude of their Governments in obtaining the nod of the US Congress for extension of the third country fabric rule under the African Growth and Opportunity Act (AGOA) till 2015.

The AGOA act of 2000 allows several sub-Saharan African nations to duty-and-quota free export around 6,500 product lines, including apparels, to the US.

Apparel manufacturers argue that the lapse of the third country fabric provision under the AGOA would adversely impact the apparel industry of African countries.

The rule, which is set to expire in September this year, allows apparel firms in African nations to duty-free export garments made using inputs imported from other parts of the world, to the US.

If the provision lapses, African nations would not be able to use fabrics and raw materials imported from other countries for manufacturing apparels meant for duty-free export to the US. This would severely affect the large-scale apparel exports from these countries to the US.

In view of the same, the African Cotton and Textile Industries Federation (ACTIF) has urged the Governments of African countries to lobby for waiver of the rule of origin for raw materials post August 2012.

Kenya is a key beneficiary of the AGOA provision and as per the Export Processing Zone Authority (EPZA) data, apparel exports to the US grew by 26.5 percent to Sh 16.1 billion in 2010 from exports worth Sh 12.7 billion in 2009.

According to the Kenya Apparel Manufacturers Exporters Association, failing to secure extension of the third country fabric provision would result in closure of 15 apparel firms, resulting in a loss of 40,000 jobs and Sh 18.5 billion in revenues.

ACTIF said the extension of third country fabric rule is one of the priority bills pending before the US Congress. It expressed optimism that the US Congress would extend the provision.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search