Home / Knowledge / News / Apparel/Garments / Chinese textile & apparel firms too benefit from AGOA
Chinese textile & apparel firms too benefit from AGOA
23
Jan '13
Mr. Lorenzo Rotunno
Mr. Lorenzo Rotunno
The African Growth and Opportunity Act (AGOA), which enables countries in Africa to export over 4000 products, including hundreds of apparel products, quota-free and duty-free to the US, has been benefitting the Chinese textile and apparel companies too.

According to a report ‘The Rise and Fall of Chinese (African) apparel exports’, prepared by the Centre for the Study of African Economies, University of Oxford, a large share of AGOA exports were from Chinese textile and garment companies aimed for the US but transshipped through AGOA countries, with little assembly work done in Africa.

The absence of ‘rules of origin’ in the AGOA has provided an opportunity for Chinese clothing exporters to merely tranship their products, not only by avoiding the heavy export duty to the US under the Multifiber Agreement (MFA), but by benefitting from AGOA preferences, say Lorenzo Rotunno, Pierre-Louis Vezina and Zheng Wang, the authors of the report.

Mr. Lorenzo Rotunno, the lead author, told fibre2fashion, “Chinese apparel exporters can exploit the African route to the US market by relocating part of the supply chain to Africa. AGOA enables the Chinese garment exporters to avoid the existing high trade barriers imposed by the US on apparel imports.”

“The governments of many AGOA countries see the textile industry as a key to the industrial development in the region and have set up Free Trade Zones to attract foreign direct investments,” he informs.

“However,  while AGOA will remain fundamental to ensure preferential market access, African countries should identify some key segments of the global apparel production chain where they have a potential advantage and focus on their development, rather than depending on foreign direct investments,” he suggests.

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

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Silke Brand-Kirsch
Schlegel und Partner

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Silvia Venturini Fendi
Fendi s.r.l

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

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