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Botswana optimistic about extension of AGOA provision
Jun '12
The US has assured Ministers from African countries that renewing both the African Growth and Opportunities Act (AGOA) and its key Third-Country Fabric provision were a priority for the US Congress, Vincent Seretse, Assistant Trade Minister, said on his return to Botswana after participating in the AGOA Forum in Washington.
Under AGOA, 40 African countries, including Botswana, are entitled to duty and quota free access to the US market.
For Botswana, the AGOA comprises of 6,400 product lines, but the country’s textile and garment sector has become the biggest beneficiary of AGOA over the years.
The Third-Country Fabric provision under the AGOA enables apparel exporters in Botswana and other AGOA nations to use fabric imported from Asia for producing goods meant for export to the US.
While the Third-Country Fabric provision is due to end in September this year, the AGOA itself is set to end in 2015.
Mr. Seretse said it bodes well for the textile sector as the US is committed to continue providing open market access to Botswana and other AGOA countries.
In 2011, Botswana exported textiles and clothing worth US$ 15 million under AGOA, showing a 133 percent year-on-year increase.

Fibre2fashion News Desk - India

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