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

Courtesy: Li & Fung

Textiles | On 29th Mar 2017

Li & Fung introduces new 3-year plan 2017-2019

Li & Fung Limited has outlined its next Three-Year Plan (2017-2019)...

Courtesy: Carrington

Apparel/Garments | On 29th Mar 2017

Carrington Workwear signs JV with TMG Textiles

Carrington Workwear, one of the largest producers of workwear fabrics ...

Apparel/Garments | On 29th Mar 2017

Jabong launches Aeropostale on its platform

Jabong has added leading American high-street fashionwear brand,...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Suresh Patel
Sidwin Fabric

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

Steve Cole
Xerium Technologies

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Sanjukta Dutta
Sanjukta's Studio

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Bani Batra

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

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
March 2017

March 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