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Third country fabric provision under AGOA to boost garment exports
08
Apr '09
Local entrepreneurs in Mauritius have been allowed to use fabric from “Third Country Source” under African Growth and Opportunity Act (AGOA). For intimating this to the local entrepreneurs, Mauritius is going to organize one-week seminar from coming Monday.

According to the experts, Mauritius textile and garment sector can attain greater heights through this Third Country Fabric provision as it is going to help Mauritian textile factories to attract more US apparel buyers.

According to statistics, exports from the textile and garment sector touched US $1.09 billion and accounted for 9.9 percent of overall exports from the country, which goes to show the importance of the sector, in the economy of the country.

AGOA has improved the US market access for 40 Sub-Saharan African countries at a considerable rate. Including Mauritius, there are around 27 countries enjoying approval under AGOA System and have been marked eligible for textile & apparel benefits.

African Growth and Opportunity Act was originally enacted for the period beginning from October 2000 to September 2008, which was amended in July 2004 and extended till 2015. Also a specific dispensation for apparel was extended till year 2007, in the same year.

However, in October 2008 the US congress approved eligibility of Mauritius for the Third Country Fabric Provision till year 2012. Experts see this provision as an opportunity for the textile manufacturing industry to increase exports to the US market during global economic downturn.

Fibre2fashion News Desk - India

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