Home / Knowledge / News / Apparel/Garments / US orders dip as AGOA provision extension gets stalled

US orders dip as AGOA provision extension gets stalled

30
Jul '12
A bill seeking extension of the third-country fabric provision under the Africa Growth and Opportunity Act (AGOA) has got stalled due to a row in the US Senate over the funding of AGOA.
 
This has caused a substantial reduction in apparel orders placed by US firms with African companies.
 
The third-country fabric provision allows for duty-free import of garments made in Sub-Saharan African countries using yarn and fabric imported from non-African countries, especially countries like India and China.
 
In the event of non-extension of the third-country fabric provision under the AGOA, which expires on September 30, the US buyers would have to pay more for their apparel procured from Africa.
 
In the midst of ongoing uncertainty over the extension of the provision, apparel workers in African countries now face the risk of losing jobs. Already, sewing machines in many apparel units that usually produce jeans or T-shirts for popular American clothing brands have gone idle.
 
In fact, time is running out and if the AGOA provision fails to get extension from the US lawmakers before they take a month-long break in August, African countries will temporarily, if not permanently, lose the duty-free access for their clothing items to the US, resulting in a loss of millions of dollars.
 

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 17th Feb 2020

Vietnam textile firms urged to source from Malaysia, India

Pham Xuan Hong, president of Ho Chi Minh City’s textile association,...

Pic: Shutterstock

Textiles | On 17th Feb 2020

Myanmar to initiate measures to improve trade strategies

Myanmar will take measures to raise overseas demand for indigenous...

Pic: PaCT

Apparel/Garments | On 17th Feb 2020

IFC portal to monitor resource usage in Bangla RMG sector

The International Finance Corporation (IFC) has developed PaCT...

Interviews View All

Headhonchos, Indian textile value chain

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Top executives, Fashion houses, India

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Top executives, Textile industry

Top executives
Textile industry

It will take some time for the people to change their buying choices

Suresh P Bagrecha,

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Marcello Galvanin,

Marcello Galvanin

Galvanin has more than 50 years of experience in the production of textile ...

Zafer Demirel,

Zafer Demirel

Turkey's Canlar Mechatronics is a leading designer and manufacturer of...

Sven Ghyselinck, Devan Chemical

Sven Ghyselinck
Devan Chemical

Headquartered in Belgium and with offices in the United Kingdom, Portugal...

Ashok Desai, Bombay Textile Research Association

Ashok Desai
Bombay Textile Research Association

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

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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


February 2020

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


Advanced Search