Home / Knowledge / News / Apparel/Garments / US may expand duty-free facility, AGOA countries jittery
US may expand duty-free facility, AGOA countries jittery
13
Aug '10
41 countries in the sub-Saharan African continent are beneficiaries of the Africa Growth and Opportunity Act (AGOA), under which, a host of good, which includes textiles and clothing can be exported duty-free to the US, which is the biggest economy in the world.

But now, the US government is contemplating extending the duty-free facility to low-cost producers in the Asian countries like Bangladesh, Nepal and Cambodia. This competition will prove to be hard to withstand for the textile and clothing sector in Kenya.

Textile and apparel exports from Kenya to the US have been going only one way; downhill. They have plunged from a high of Sh21.7 billion (US $272 million) in 2003 to a low of Sh14 billion last year.

African experts aver that even without the duty-free benefits, the Asian countries have squeezed out the countries tied together by the AGOA agreement and now extending this facility to these Asian countries will sound the death-knell for the African textile sector.

AGOA was initiated with the express purpose to help develop these African countries, but for various reasons the scheme was never exploited by the beneficiary countries. The US has opened nearly 6,400 lines of products under the scheme.

While apparel exports from Asian countries have skyrocketed, those from African countries have nosedived. In the period between 2004 and 2009, clothing exports from Bangladesh grew by 71 percent and Vietnam 98 percent, that from Africa dropped by 48 percent.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 18th Jan 2017

HanesBrands earns above average scores in CDP 2016

Global apparel and innerwear retailer HanesBrands said it has...

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Robert Brunner
Devereux

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

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
January 2017

January 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