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African textile exports may reach US$4 billion under US trade deal
A TRADE scheme known as the African Growth and Opportunities Act (AGOA), currently before American lawmakers, provides eligible sub-Saharan countries duty-free access to the US apparel market, giving Africans an edge over Bangladesh and Vietnamese producers.
The US administration has called for Congress to renew the programme that stood to quadruple African textile export value to the US to US$4 billion within a decade, before the scheme expires on September 30, Reuters reports.
AGOA, which started in 2000, has already been renewed past its original 2008 expiry date and can be extended for 10 years.
"Ten years is a game-changer. Africa should be able to quadruple its exports," said Gail Strickler, assistant United States trade representative for textiles and apparel.
Last year, US clothing imports from sub-Saharan countries reached $986 million, up nearly six per cent from 2013, as countries such as Lesotho, Kenya, Ethiopia and Tanzania participated in the programme.
Analysts said Africa had lower labour costs and abundant raw materials, such as top-quality cotton from Uganda, but congested ports, a poor road network, lack of skills and old technology were a hindrance.
"While the costs may be rising in Asia, they are still way more competitive than Africa, especially on productivity, quality and product range," said Joseph Nyagari, an official at the Nairobi-based African Cotton and Textile Industries Federation
The US administration has called for Congress to renew the programme that stood to quadruple African textile export value to the US to US$4 billion within a decade, before the scheme expires on September 30, Reuters reports.
AGOA, which started in 2000, has already been renewed past its original 2008 expiry date and can be extended for 10 years.
"Ten years is a game-changer. Africa should be able to quadruple its exports," said Gail Strickler, assistant United States trade representative for textiles and apparel.
Last year, US clothing imports from sub-Saharan countries reached $986 million, up nearly six per cent from 2013, as countries such as Lesotho, Kenya, Ethiopia and Tanzania participated in the programme.
Analysts said Africa had lower labour costs and abundant raw materials, such as top-quality cotton from Uganda, but congested ports, a poor road network, lack of skills and old technology were a hindrance.
"While the costs may be rising in Asia, they are still way more competitive than Africa, especially on productivity, quality and product range," said Joseph Nyagari, an official at the Nairobi-based African Cotton and Textile Industries Federation
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