Home / Knowledge / News / Apparel/Garments / USTR lauds critical updates in AGOA & CAFTA-DR
USTR lauds critical updates in AGOA & CAFTA-DR
22
Jun '12
United States Trade Representative Ron Kirk welcomed news of an agreement in Congress to advance legislation making critical updates and improvements to the African Growth and Opportunity Act (AGOA), America’s trade preference program for sub-Saharan Africa, and the Central America – Dominican Republic – United States Free Trade Agreement (CAFTA-DR).

“If our trade partnerships with Africa and Central America are going to provide the economic boost they’re meant to provide to these developing regions, and benefit American businesses and consumers as well, these critical fixes to AGOA and CAFTA-DR need to pass.

“So the agreement to move this legislation now is a very welcome step,” said Ambassador Kirk. “We look forward to working with Congress in any way we can to ensure the renewal of AGOA’s third-country fabric provision and the implementation of technical changes to CAFTA-DR’s textiles and apparel provisions as soon as possible.”

The extension of AGOA’s third-country fabric provision was a critical issue raised by trade ministers during the recent AGOA Forum in Washington, DC. U.S. orders for shipment of African exports after the slated expiration date of September 2012 are down 35 percent; African textile exports have already dropped by 27 percent in the last year.

Benefits of Extending AGOA’s Third-Country Fabric Provision

Critical to AGOA’s performance: AGOA is the cornerstone of America’s trade and investment policy with sub-Saharan Africa. AGOA’s performance and effectiveness are closely tied to its Third-Country Fabric (TCF) provision, which is set to expire in September 2012.

The TCF provision is crucial to the continued survival of Africa’s textile and apparel industry – it has generated hundreds of thousands of jobs in sub-Saharan Africa, including in least developed countries, and has helped American retailers reduce their costs, diversify their supply chains, and provide greater low-cost apparel options for U.S. consumers.

Swift passage of legislation extending AGOA’s TCF provision is necessary to ensure AGOA’s continued success – and the stability, development, and economic growth of sub-Saharan African countries. Congress has extended the TCF provision twice with bipartisan support.

The key to the African apparel industry’s development: Apparel trade under AGOA depends on the TCF provision. Global sourcing decisions for apparel are typically made up to nine months in advance, so failing to extend the TCF provision now means that apparel buyers are preparing to move production out of AGOA beneficiary countries, which will likely result in significant job losses and factory closures in Africa.

The potential collapse of AGOA apparel exports – if third country fabric is not extended – will also have a negative impact on the cotton and textiles inputs, and would significantly weaken the prospects for the development of a viable and more vertically integrated African cotton-to-apparel value chain.


Must ReadView All

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

American Merchant to invest $19.9 mn to start Bristol plant

Textiles | On 15th Dec 2017

American Merchant to invest $19.9 mn to start Bristol plant

American Merchant, Inc., a subsidiary of Merchant House International ...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search