Zambia calls for extension of AGOA fabric provision

16 Jun '12

2 min read

Being apprehensive about the setback that the country’s apparel industry would suffer in the event of expiry of the Third Country Fabric provision under the African Growth Opportunity Act (AGOA), the Zambian Government is seeking an extension of the same.

The provision that allows the least-developed countries (LDCs) to ship their apparels, made from fabric imported from any corner of the world, duty-free to the US, is set for expiry in September this year.

Expiry of the provision is likely to result in a drop in textile and apparel exports of AGOA eligible nations.

Addressing experts from AGOA-eligible states prior to the 12th AGOA forum in Washington DC, Zambia’s Ministry of Commerce, Trade and Industry Permanent Secretary Stephen Mwansa, said the provision is imperative for survival of the textile and apparel industry of Africa as a whole, as it leads to generation of a lot many jobs in the continent.

Mr. Mwansa, the out-going Chairman for AGOA, noted that in view of the already visible decline in textile and apparel exports from AGOA eligible countries, the effects of expiry of the provision would be serious.

He said that with several uncertainties surrounding the continuity of the provision, importers have now started sourcing goods from elsewhere.

Fibre2fashion News Desk - India