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 26th May 2017

Lenzing unleashes new eco-friendly fibre

There's a new eco-friendly fibre on the anvil—Austrian speciality...

Apparel/Garments | On 26th May 2017

PVH Corp Q1 2017 revenue rises 4%

The first quarter revenue of fiscal 2017 at apparel marketer PVH Corp ...

Courtesy: Levi Strauss & Co

Apparel/Garments | On 26th May 2017

LS&Co. to fund water saving solutions

LS&Co. will fund to the tune of more than $350,000 the solutions...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Amardeep Singh
Orient Craft

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Bani Batra

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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