Home / Knowledge / News / Apparel/Garments / South Africa seeks amendments in AGOA status
South Africa seeks amendments in AGOA status
07
Aug '12
The Government of South Africa is looking forward to commence talks with the US to affect changes in the African Growth and Opportunity Act (AGOA), as domestic textile and clothing firms are not being able to benefit from the existing act.
 
The US Congress first passed the AGOA Act in 2000, thereby opening the way for sub-Saharan African countries to ship their goods to the US markets without paying any import duty. Though, it even covered some other goods, the legislation was mainly designed to boost apparel trade.
 
Recently, the US Congress extended the third-country fabric provision under the AGOA, which was scheduled to expire in September 2012, for another three years, and included South Sudan in the list of beneficial countries.
 
Addressing an African Cotton and Textile Industries Federation (Actif) conference in Accra, Ghana, the Executive Director of Apparel Manufacturers of South Africa (Amsa), Johann Baard, said there are two obstacles impeding the way of South African clothing and textile industry – one is the strong rand and other that the country has been categorized as a developed nation under AGOA.
 
This means that to enjoy duty-free exports to the US, South African apparel producers necessarily have to use domestically sourced yarn and fabric, but most of the times the fabrics that US retailers demand are not produced in South Africa, Mr. Baard said.
 
Due to this, in most instances, the South African apparel producers fail to avail the benefit of duty-free exports to the US. On the other hand, countries like Kenya and Malaysia can openly import fabric to produce apparels for duty-free export to the US. 
 
South Africa is at disadvantage as locally produced fabrics do not match the requirements of the American markets, and hence, it is urging the US to amend its status under AGOA.
 

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 20th Jul 2017

Provide safety net for cotton growers: Congress to Trump

A bipartisan Congressional coalition has called attention of...

Courtesy: ITMF

Textiles | On 20th Jul 2017

ITMF'17 themed on tech, trade, climate in disruptive times

The International Textile Manufacturers Federation (ITMF), an...

Textiles | On 20th Jul 2017

RIL’s Q1 FY18 petrochemicals revenue up 22.9% y-o-y

Reliance Industries Limited (RIL) has reported its financial...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Eric Scholler
Groz-Beckert

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Suresh Patel
Sidwin Fabric

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Tony Ward
Tony Ward

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

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

July 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

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

Yes No

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

Yes No

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


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



X