Home / Knowledge / News / Textiles / AGOA suspension has chilling effect on T&G sector

AGOA suspension has chilling effect on T&G sector

02
Mar '10
Unemployment levels in the textile and clothing sector in the African island nation of Madagascar is reaching unprecedented levels since the US government suspended Madagascar country from a preferential trade agreement with the US.

Textile and garment factories which had a turnover of US $600 million, half of which was derived from exports to the US, provided direct employment to over 50,000 workers and indirect employment to over 100,000 people.

The US administration suspended the country from drawing incentives in exports to that country under the African Growth and Opportunities Act (AGOA), which permitted zero-duty shipments to the biggest economy in the world.

With each passing day, textile and apparel factories are laying-off workers as lead times of orders taken before the suspension came in to effect, draw to a close. The US administration drew the line, after an illegitimate government seized power in the country.

This suspension will have a direct bearing on economies of other neighbouring countries like Mauritius, Swaziland and Lesotho, since many of the raw materials to manufacture textiles and clothing were imported from these countries.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 6th Apr 2020

GMAC urges buyers to fulfil purchase contracts

The Garment Manufacturers Associations in Cambodia (GMAC) has...

Pic: reddees / Shutterstock.com

Retail | On 6th Apr 2020

RAI seeks govt support for retail industry

Stating that retail sector is one of the largest employers in the...

Pic: Shutterstock

Information Technology | On 6th Apr 2020

Odd Concepts attracts funds despite Covid-19 crisis

Odd Concepts, an AI-based fashion tech company, has been able to...

Interviews View All

Asim Dalal, Indo Count Retail Ventures

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Pinkesh Jain, Everflow Petrofils Ltd

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Siddharth Biyani, Mangalam Industries Pvt Ltd

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Teresa Neal,

Teresa Neal

Teresa Neal, an art professional with 25 years of experience, in...

Marco Girola,

Marco Girola

With its commitment to innovation and deep technical expertise,...

Jash Choraria,

Jash Choraria

Established in 2015 by <b>Jash Choraria</b>, Unifynd is a Mumbai-based...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Urs Stalder, Sanitized AG

Urs Stalder
Sanitized AG

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

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

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


April 2020

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


Advanced Search