Agoa.info - African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/'Changing jeans sourcing scene has these countries coming up roses'

'Changing jeans sourcing scene has these countries coming up roses'

'Changing jeans sourcing scene has these countries coming up roses'
Published date:
Friday, 09 April 2021
Author:
Arthur Friedman

The sourcing landscape for denim jeans is slowly but certainly shifting, while overall U.S. blue denim apparel imports continue to decline.

Imports of jeans fell 7.43 percent in the first two months of the year compared to the same period in 2020 to a value of $460.25 million, expanding on a 5.36 percent year-over-year falloff in January, according to the Commerce Department’s Office of Textiles & Apparel (OTEXA).

Coming off a difficult year and fourth quarter, brands and retailers were still working off some inventory amid wobbly consumer demand.

As the year progressed, production choices seem to be coming into a clearer picture. Of the Top 10 supplier countries, only four posted increased shipments to the United States, OTEXA data showed.

Leading the way was No. 1 supplier Bangladesh, with jeans imports to the U.S. increasing 5.57 percent year to date through February compared to the same time last year for a value of $95.16 million. Imports from denim powerhouse Pakistan were up 11.01 percent to $42.96 million.

The other two suppliers posting gains represent regions that are emerging as sourcing choices for blue jeans. Imports from Nicaragua rose 21.26 percent year to date to $16.79 million, while shipments from Lesotho were up 19.04 percent to $9.23 million.

Nicaragua’s gains were part of a 6.18 percent increase in the period to $19.87 million for the countries of the Central American Free Trade Agreement (CAFTA). CAFTA countries can receive duty-free import status if they meet material content qualifications.

Lesotho’s rise comes along with a 28.63 percent increase to $24.61 million from the Sub-Saharan region, where qualifying countries are part of the African Growth & Opportunity Act (AGOA) trade preference program. Other AGOA countries posting gains in the period included Madagascar, up 34.25 percent to $7.69 million; Ethiopia, increasing 66.48 percent to $2.76 million; Kenya, up 48.91 percent to $3.11 million, and Tanzania, jumping 94.92 percent to $1.23 million.

Among the rest of the Top 10 suppliers, jeans imports from No. 2 Mexico, after a small year-over-year gain in January, declined 4.9 percent to $87.47 million. Vietnam and China were able to cut their losses in February after significant year-to-year declines in January. However, blue jeans imports from Vietnam were still down 24.16 percent in the period to $49.49 million and shipments from China fell 11.66 percent to $49.36 million.

Imports from Cambodia, which had showed strength in 2020, declined 12.93 percent year to date through February to $25.38 million, while Egypt’s shipments fell 32.76 percent to $17.14 million and Sri Lanka’s were down 19.93 percent to $8.12 million.


 agoa business connector

Read related news articles

US official reveals Ethiopia’s request for AGOA eligibility ‘still pending’, decision unlikely at upcoming forum

A US State Department official has disclosed that the decision to reinstate Ethiopia’s eligibility for the African Growth and Opportunity Act (AGOA) is “still pending”. Constance Hamilton, Assistant US Trade Representative for Africa, made this statement during a digital press briefing held on Thursday.  “Those decisions are still pending,” Ms Hamilton told journalists from the continent, and that “there probably will not be...

27 October 2023

AGOA boosts Kenya's textile exports to US, sector sees 7.2% growth

The African Growth and Opportunity Act (AGOA) has benefitted Kenya’s textile and apparel sector, leading to monthly exports to the tune of Sh4.5 billion, or Sh150 million per day, last year, according to a study by London-based Institute of Economic Affairs (IEA). The programme has had a positive impact on the country’s export-processing zones (EPZs), especially in the textile and garment sector. Kenya is the second-largest exporter of...

08 August 2023

US fashion brands urge early renewal of AGOA

US fashion companies are calling for the early renewal of the African Growth and Opportunity Act (AGOA), a trade program that allows thousands of African products to enter the United States duty-free. They argue that a longer-term arrangement would not only benefit African economies but also boost investment in the region. The AGOA was first enacted in 2000 and is currently set to expire in 2025. However, US officials have indicated that the...

31 July 2023

US boosts Kenya apparel industry with $55m in new trade deals

The US is giving Kenya $55 million for expansion of export processing zones in a move that will boost Nairobi’s apparel exports. US initiative Prosper Africa and the US Embassy announced the funding at the launch of the US-Kenya Business Roadshow held on April 25 in New York. The announcement was part of the commitments made by President Joe Biden at the US-Africa Leaders’ Summit last year. The funds will be channelled under USAid and...

29 April 2023

State Secretary Blinken praises Ethiopia on Tigray peace, no return to trade programme yet

U.S. Secretary of State Antony Blinken praised Ethiopia on Wednesday for its progress in implementing a peace deal to end the Tigray conflict, but stopped short of ushering the country back into a U.S. trade programme. Visiting Ethiopia to repair relations that were strained by the two-year war in the northern region, Blinken met with Prime Minister Abiy Ahmed and discussed ongoing efforts to solidify peace, restore basic services and address...

13 March 2023

Ethiopia asks US to reinstate AGOA trade benefits as US Secretary of State Blinken heads to Addis, Niger

Ethiopia is asking the Joe Biden administration to reinstate its duty-free access to the US market, arguing that “exceptional circumstances” warrant an immediate re-examination of its suspension just as Secretary of State Antony Blinken heads to Addis Ababa to discuss the cessation of hostilities in Tigray. The Office of the US Trade Representative (USTR) terminated Ethiopia’s participation in the African Growth and Opportunity Act...

09 March 2023

Nigeria: Garment factory to create 2,000 direct jobs, utilize AGOA

Kwara State Governor, AbdulRahman AbdulRazaq, at the weekend, said the state’s garment factory will be inaugurated this year with a take off capacity to hire 2,000 direct labour. Speaking with dozens of APC youths, progressive social media influencers, and some online news publishers on Saturday, the governor said the idea is to make Kwara a hub for garment production, which can then benefit from the African Growth and Opportunity Act...

26 August 2022

AAFA: Africa ‘logical’ choice for brands fleeing China

The American Apparel and Footwear Association (AAFA) urged the office of the United States Trade Representative (USTR) to renew the African Growth and Opportunity Act (AGOA), as U.S. brands and retailers look to diversify sourcing. While the trade agreement’s expiration is still three years away, the Washington, D.C.-based trade group believes that establishing long-term, forward-looking policy will help brands commit to new sourcing...

29 June 2022

Kenya 'reaps Sh10 billion after Ethiopia's ban from AGOA deal'

Kenya earned an additional Sh10.2 billion from its exports to the US as Nairobi reaped big from Ethiopia’s suspension from a duty-free trade pact. Last year, Kenya’s exports to the US — mostly apparel were valued at Sh59.6 billion, a jump of more than a fifth from Sh49.4 billion in 2020 as Kenyan traders sold more goods through the African Growth and Opportunity Act (Agoa), a free trade agreement between Washington and select African...

24 May 2022

US Senator requests return of Ethiopia to AGOA

A U.S senator has requested the senate to return Ethiopia to AGOA as it has been progressing in many aspects. U.S. Senator from Virginia Mark Warner said the U.S. should strengthen and improve the trade relationship between Africa specifically Ethiopia. The Ethiopian government has been pending progress in many aspects, especially the ceasefire. The trade relation between Africa specifically with Ethiopia is important. “We do that...

05 April 2022

In Ethiopia, Guinea and Mali, fears rise over losing duty-free access to US market

For Sammy Abdella, the new year has brought bad tidings: the prospect of a steep drop in sales of scarves, rugs, baskets and other textile goods produced by Sammy Handmade in Ethiopia. “The U.S. market is our main destination,” said Abdella, who estimates it accounts for nearly two-thirds of sales for his Addis Ababa-based home decor and fashion company. “So, losing that put us in a very, you know, bad situation.” The source of...

20 January 2022

You are here: Home/News/Article/'Changing jeans sourcing scene has these countries coming up roses'