Editorial: US textile and apparel manufacturers and retailers call for a renewal of the African Growth and Opportunity Act (AGOA)

15 pages, published in Issue 218, May 2023   Report price: Euro 305.00; US$ 400.00

The future of the textile and clothing industries in Sub-Saharan African countries hangs in the balance. Their apparel exports to the USA have been governed by the African Growth and Opportunity Act (AGOA) for over 20 years but the Act is set to expire in September 2025. The continuation of AGOA is of vital importance to the region. The Act has been the primary competitive advantage for companies in Sub-Saharan African countries which export apparel to the USA, and the benefits provided by AGOA are essential to the maintenance of apparel exports from these countries to the USA. Furthermore, a failure to renew AGOA before the end of 2024 could potentially result in the loss of tens of thousands of jobs in Africa. Fortunately, extension of the agreement is supported by a broad coalition of interests comprising US industry associations and retail associations, including the American Apparel & Footwear Association (AAFA) which has urged the Office of the US Trade Representative (USTR) to renew AGOA for at least another ten years.

INTRODUCTION


IMPORTANCE OF THE AFRICAN GROWTH AND OPPORTUNITY ACT (AGOA) FOR SUB-SAHARAN AFRICAN COUNTRIES AND THE US APPAREL SECTOR

• Impact of AGOA on apparel production in Sub-Saharan African countries and exports from Sub-Saharan African countries by country
• AGOA has had a limited impact on building an integrated regional textile and apparel supply chain in Sub-Saharan Africa
• Uncertainty of AGOA renewals adversely affects US apparel imports from Sub-Saharan African countries
• More can be done to leverage cotton production in Sub-Saharan African countries better

HAS THE AFRICAN GROWTH AND OPPORTUNITY ACT (AGOA) ACHIEVED ITS ORIGINAL AIMS?

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