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

NRF urges US Congress to step in, stop trade war

Apparel/Garments | On 21st Jun 2018

NRF urges US Congress to step in, stop trade war

The National Retail Federation (NRF) recently urged the US Congress...

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

Courtesy: Tintex

Textiles | On 21st Jun 2018

'Price ratio is key factor for knitted fabrics market'

The price ratio is a key factor for the global knitted fabrics market ...

Interviews View All

Priyanka
Studio Priyanka Rajiv

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

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Steve Cole
Xerium Technologies

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

Kerem Durdag
Biovation II LLC

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

Silvia Venturini Fendi
Fendi s.r.l

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search