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

Rick Helfenbein (left), president and CEO of AAFA, with Juan Estrada, chief of party, Hub; Courtesy: Hub

Apparel/Garments | On 23rd Feb 2017

AAFA inks agreement for best manufacturing in East Africa

The American Apparel & Footwear Association (AAFA) has entered into a ...

Mango vice-chairman and member of the board of directors Daniel Lopez (L) with Ananth Narayanan, CEO, Myntra & Jabong. Courtesy: Myntra

Apparel/Garments | On 23rd Feb 2017

Mango awards distribution & management rights to Myntra

Mango, the Spanish fast fashion brand, has awarded its master...

Courtesy: IUCN

Apparel/Garments | On 23rd Feb 2017

Synthetic clothes should shed fewer fibres: IUCN report

Synthetic clothes should be designed in a manner that it will shed...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Marcel Alberts
Eurofibers

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Bani Batra

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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
February 2017

February 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