Home / Knowledge / News / Textiles / Lapse of third country AGOA provision worries Kenyan textile units
Lapse of third country AGOA provision worries Kenyan textile units
29
Oct '11
The third country fabric policy under the African Growth and Opportunity Act (AGOA) will lapse in September 2012.

This is making companies jittery in the US as well as Kenyan textile units. Influential US groups are lobbying with the US Congress to extend the deadline.

Under AGOA, African countries can export duty free textiles and clothing to the US, even if the fabric was imported from a third country.

The textile industry in Kenya, one of the countries under the AGOA, could feel the impact if the deadline is not extended.

The US lobby group which is calls itself “Supporters of Africa Trade in Washington” informed that the campaign was necessary so that the economic problems confronting the US do not distract policy makers from improving trade ties with Africa.

The US provided the third country provision to the African countries in order that they may develop the textile value chain within their respective countries.

The third country provision initially lapsed in 2007, but was successfully renewed for a further period of five years ending in September 2012.

At an AGOA forum held in Lusaka, Zambia in June this year, African countries too took a common position to push jointly for the renewal of the window.

Textile industries in Kenya import around 90 percent of the 180,000 cotton bales or semi-finished fabrics to produce apparels for export to US.

Clothing exports to the US under AGOA rose from Sh12.7 billion in 2009 to Sh16.1 billion in 2010, up 26.5 percent, data from the Export Processing Zone Authority reveals.

In case the third country provision is not extended in September 2012, it could result in a massive flight of capital from these zones, worry experts.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: India ITME

Textiles | On 8th Dec 2016

Industry needs to create 1cr jobs in 3yrs: Kavita Gupta

Sharing several initiatives laid out by the government in R&D,...

Textiles | On 8th Dec 2016

Package will boost made-ups sector: SIMA

The reforms package approved by the Union Cabinet to boost employment ...

Textiles | On 8th Dec 2016

Cabinet okays reforms to boost jobs in made-ups sector

The Union Cabinet chaired by prime minister Narendra Modi has given...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mark Paterson
Technical Absorbents Ltd

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

Ritu Kumar
Label Ritu Kumar

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search