Home / Knowledge / News / Apparel/Garments / US orders dip as AGOA provision extension gets stalled
US orders dip as AGOA provision extension gets stalled
30
Jul '12
A bill seeking extension of the third-country fabric provision under the Africa Growth and Opportunity Act (AGOA) has got stalled due to a row in the US Senate over the funding of AGOA.
 
This has caused a substantial reduction in apparel orders placed by US firms with African companies.
 
The third-country fabric provision allows for duty-free import of garments made in Sub-Saharan African countries using yarn and fabric imported from non-African countries, especially countries like India and China.
 
In the event of non-extension of the third-country fabric provision under the AGOA, which expires on September 30, the US buyers would have to pay more for their apparel procured from Africa.
 
In the midst of ongoing uncertainty over the extension of the provision, apparel workers in African countries now face the risk of losing jobs. Already, sewing machines in many apparel units that usually produce jeans or T-shirts for popular American clothing brands have gone idle.
 
In fact, time is running out and if the AGOA provision fails to get extension from the US lawmakers before they take a month-long break in August, African countries will temporarily, if not permanently, lose the duty-free access for their clothing items to the US, resulting in a loss of millions of dollars.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 19th Jan 2017

Pakistan imposes duty on Indian fine cotton yarn

A provisional countervailing duty ranging from Rs 26.89 to Rs 55.8 a...

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

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

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Marcel Alberts
Eurofibers

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

Tony Ward
Tony Ward

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search