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SACU clothing exports to US show healthy increase
22 Nov '06
2 min read
Southern African Customs Union (SACU) exports to the US have grown by 25 percent in the 9 months to September 2006, compared with the same period in 2005.
Total exports to the US were valued at US$ 6.2 billion compared with US$ 5 billion the previous period. Of this, US$ 1.7 billion was exported under AGOA, meaning that it entered the United States duty free, although other exports may have likewise obtained duty-free entry where current US import tariffs are already 0 percent.
If taking out mineral and metal exports, the rate of AGOA utilisation by SACU countries rises to 63 percent overall.
SACU (Southern African Customs Union) also continues to enjoy a substantial trade surplus in its trade with the US.
Total two-way trade over the January-September period was US$ 9.4 billion, with the trade surplus in SACU's favour at over US$ 3 billion. South Africa is the dominant trade partner in SACU with respect to US trade, accounting for almost 90 percent of US-bound exports.
Besides minerals and metals, leading export sectors are the clothing sector, transportation equipment and chemicals & related products. 93 percent of textiles and clothing are exported under AGOA, and almost all of this under the LDC provisions that allow SACU Member States Lesotho, Namibia, Botswana and Swaziland to use fabrics from non-AGOA countries in the manufacture of AGOA-eligible exports.
Unless this provision is extended beyond October 2007, when it is set to expire, there will be a major decline in exports. Apparel quotas, which in terms of the AGOA legislation have been halved for LDC clothing exports shipped under the third country fabric rule in the current year, may even result in an earlier embargo on LDC clothing than the end of the current quota period.
Quota utilisation under the LDC rule currently stands at just under 8 percent, for the first month of the annual quota period which spans October 2006 to September 2007. See quota utilisation rates, by country, here.
Total exports to the US were valued at US$ 6.2 billion compared with US$ 5 billion the previous period. Of this, US$ 1.7 billion was exported under AGOA, meaning that it entered the United States duty free, although other exports may have likewise obtained duty-free entry where current US import tariffs are already 0 percent.
If taking out mineral and metal exports, the rate of AGOA utilisation by SACU countries rises to 63 percent overall.
SACU (Southern African Customs Union) also continues to enjoy a substantial trade surplus in its trade with the US.
Total two-way trade over the January-September period was US$ 9.4 billion, with the trade surplus in SACU's favour at over US$ 3 billion. South Africa is the dominant trade partner in SACU with respect to US trade, accounting for almost 90 percent of US-bound exports.
Besides minerals and metals, leading export sectors are the clothing sector, transportation equipment and chemicals & related products. 93 percent of textiles and clothing are exported under AGOA, and almost all of this under the LDC provisions that allow SACU Member States Lesotho, Namibia, Botswana and Swaziland to use fabrics from non-AGOA countries in the manufacture of AGOA-eligible exports.
Unless this provision is extended beyond October 2007, when it is set to expire, there will be a major decline in exports. Apparel quotas, which in terms of the AGOA legislation have been halved for LDC clothing exports shipped under the third country fabric rule in the current year, may even result in an earlier embargo on LDC clothing than the end of the current quota period.
Quota utilisation under the LDC rule currently stands at just under 8 percent, for the first month of the annual quota period which spans October 2006 to September 2007. See quota utilisation rates, by country, here.
This article has been sourced from www.AGOA.info
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