Home / Knowledge / News / Apparel/Garments / South Africa seeks amendments in AGOA status
South Africa seeks amendments in AGOA status
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

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

Kaizad Hansotia

Competition is the best thing that can happen to a startup

Johan Berlin
InvestKonsult Sweden AB

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Larry L Kinn
Suominen Corporation

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


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