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Malawi's government has failed to seal a textile tax-free export extension deal with the Southern African Customs Union (Sacu) which now means over 6,000 jobs in the textile industry in the country face uncertain future, Economic Report can reveal.The last three-month extension expired last month before a replacement facility had been clinched with Sacu countries. Each extension means a lot to Malawi’s textile industry because it allows duty-free export status. Now textile companies will face heavy tax tariffs when exporting their products...

Ethiopia's performance in using the AGOA trade opportunities has continued in a growing trend over the last six years and there are indications that the country will even show better growth in the years ahead, USAID said.USAID Mission Director to Ethiopia Glen Anders told WIC recently that though Ethiopia had very low performance in using the opportunity at the beginning, its performance in recent years has been excellent, and added that he expects to see a continued growth.He recalled that Ethiopia had a very good booth at the recent Magic...

The United States government has expressed confidence in the Ghanaian economy in spite of its ups and downs.Having been chosen to host the 6th African Growth and Opportunity Act (AGOA) forum, which begins on July 16, 2007 and ends on July 19, 2007 in Accra, the U.S says Ghana has demonstrated progress towards establishing a market-based economy, protection of human and workers rights and political pluralism.At a one-day seminar to sensitize the media ahead of the forum in Accra, Susan Driano, Chief of the Economic Section of the United...

In the era of centralised planning whereby the state was the major investor, it developed a huge textile sector which processed cotton into yarn, textile and garments. The state had over 15 textile factories using locally grown cotton as the major raw material.These included the Friendship Textile Mill, Ubungo Spinning Mill, Ubungo Garments Ltd, Blanket Manufacturers Ltd, Sungura Textile Mills and Kiltex, all based in Dar es Salaam.Others were Mwatex, Mutex and Motex located in Mwanza, Musoma and Moshi respectively, while othere were...

The Spcial Adviser to the President on Export Programmes and Chief Executive Officer of the Nigerian Export Promotion Council (NEPC), Mrs. Modupe Sasore, has called on Nigerian entrepreneurs to invest in the apparel production in order to take advantage of the African Growth and Opportu-nity Act before it expires in 2015.In a keynote address at the commissioning of the Human Capital Development Centre at the NEPC's training school, Sasore noted that Nigeria cannot afford to be left behind in exploring the US market for apparel as...

The Assistant Minister of Trade and Industry, Mr Lebonaamang Mokalake says there are currently nine companies benefiting from the African Growth Opportunity Act (AGOA) dispensation.Answering a question from Selebi-Phikwe west MP Nonofo Molefhi, Mr Mokalake said the companies mainly export knit wear, T-shirts, pants, tracksuits and sports wear.He said of these nine companies, five were located in Gaborone, three in Selebi-Phikwe and one in Shashe, adding that those in Gaborone were Caratex, Vision International, Cara Fashions, Cara Apparel...

The president of the Nigerian- American Chamber of Commerce/Chairman Presidential Committee on Africa Growth and Opportunity Act (AGOA), Ambassador Olufemi Ani, has urged manufacturers and exporters in the country to brace up for exportation of 6,400 non- oil products to more than 38 million African- American in the United States under the introduction of the initiative almost seven years ago.AGOA is an American legislation that came into effect May 2000. Its initial life span expires next year, and has been extended to year 2015. Under...

Financial support offered by the Uganda government to prop up textile firms, especially those exporting to the US under Agoa, is once again in the spotlight — with more questions being asked about the legality of these funds. This issue returns to haunt the government barely four months after the collapse of Apparel Tri-star, which left the Ugandan government with nearly $20 million in losses from loan guarantees and other subsidies offered to the company to enable it to export garments to the US under Agoa. The EastAfrican has learnt...

The three East African states of Kenya, Uganda and Tanzania, along with Rwanda and Burundi — the two latest entrants to the East African Community (EAC) — failed once again to pass the $0.5 billion in combined total annual exports to the US last year.These figures were released by the United States International Trade Commission (USITC) in February this year. This performance comes seven years after the United States Congress enacted the Africa Growth and Opportunity Act (Agoa) in 2001. According to the statistics, which also provide an...

Rwandans will be tipped on how to exploit more the African Growth and Opportunity Act (AGOA). Agoa has expanded duty-free access to more than 6,400 African products to U.S markets. But currently Rwanda exports only handicraft Agoa since the country joined Agoa in 2000. According to a press release from USAID, this will be discussed in a two day workshop on the U.S AGOA scheduled 5th to 6th this month at SERENA Hotel in Kigali. The workshop is sponsored by the U.S Embassy and USAID in collaboration Rwanda Private Sector and RIEPA.The release...

Nigeria's Minister of Commerce and Industry, Dr. Aliyu Modibbo Umar, has said that Nigeria can take advantage of the AGOA law and export the products to the United States and beyond with the establishment of the Human Capital Development Centre/AGOA Training School set up by the Nigerian Export Promotion Council (NEPC).The minister made this remark at the commissioning of the Human Capital Development Center/AGOA Training School set up by the Nigerian Export Promotion Council to train Nigerians in the process of commercial garment...

Landmark legislation (the AGOA) enacted seven years ago to enhance trade between the United States and Africa still holds the key to continued African growth and development, says Assistant U.S. Trade Representative (USTR) Florizelle Liser.The African Growth and Opportunity Act (AGOA) has been "a clear success" for sub-Saharan African economies, Liser said at the opening of the Central Africa AGOA Regional Workshop, held in Douala, Cameroon, February 27-28. Imports into the United States under the trade act increased more than fivefold in...

Kenya's cotton industry, once one of the country's main foreign-exchange earners, declined substantially following liberalisation of the sector in 1991.According to a recent report by the Institute of Economic Affairs, a non-governmental body based in the Kenyan capital, Nairobi, "continued synthetic competition, diminishing world prices, introduction of cheap imports of second-hand clothes and diminished cotton profitability" are among factors that dealt a blow both to cotton production and the textile and clothing industries.However,...

South Africa exported $7.5 billion (R53.2 billion) worth of goods to the US last year, according to the US International Trade Commission. At an average exchange rate of R6.7672 to the dollar for 2006, this amounts to R50.8 billion.In dollar terms, the figure represents growth of 27 percent in the year, a deceleration from the 30 percent year-on-year growth recorded in the first nine months of 2006, compared with the first nine months of 2005.Of the 2006 total, only $1.8 billion was exported under the African Growth and Opportunities Act...

Kenya's cotton industry, once one of the country's main foreign exchange earners, declined substantially following liberalisation of the sector in 1991.According to a recent report by the Institute of Economic Affairs, a non-governmental body based in the Kenyan capital, Nairobi, "continued synthetic competition, diminishing world prices, introduction of cheap imports of second hand clothes and diminished cotton profitability" were amongst factors that dealt a blow both to cotton production, and the textile and clothing industries.However,...

The first consignment of Ugandan organic cotton garments left yesterday for the lucrative United States market.The consignment of 50,000 units of assorted men 's , women 's and children 's wear worth $125,000 was flagged off by President Yoweri Museveni from the Phenix Logistics Ltd factory on 5th Street in Industrial Area. The organic cotton garments were the first exported from a sub-Saharan African country.The shipment was expected to allay concerns surrounding the future of Ugandan exports to the US under the African Growth and...

The government will address problems in the textile industry to make it a viable business. Trade and industry permanent secretary David Nalo says low pricing to farmers, lack of transparency by ginners and cheap cotton from neighboring countries are the problems faced by the sector.Speaking at cotton and textile industry stakeholders' conference held at a Nairobi hotel, Nalo encouraged weavers and spinners to form an association to root-out monopolistic tendencies that benefit the ginners while exploiting the farmers to improve the marketing...

A US trade official yesterday said Comesa member countries must use biotechnology to increase and diversify agricultural exports, if they are to reap from market opportunities in America.Trade and industry minister Mukhisa Kituyi and US ambassador to Kenya Michael Rannenberger arrive for the meeting.Mr Mike Yost, the administrator for Foreign Agriculture Services, said the increased demand for biofuels in America had created new opportunities that the countries could exploit."The manufacture of ethanol from corn (maize) has resulted in price...

On Tuesday, February 6, the United States Embassy hosted a working luncheon for a select group of women in business to initiate discussions on ways to expand their businesses and increase trade between The Gambia and the United States. The lunch at the Corinthia Atlantic Hotel in Banjul was attended by nearly 20 women representing the Department of State for Trade, Industry and Employment, the Gambia Chamber of Commerce and Industry, and various private enterprises and financial institutions.The invitees viewed segments of a film entitled...

Phenix Logistics, formerly the Uganda Garments Industry Limited (UGIL), is to export garments to the US under the African Growth and Opportunity Act (AGOA), a top trade ministry official revealed in Kampala this week.AGOA is a US government initiative that allows sub-Saharan African countries to export garments to the US market quota and tariff free.The principal commercial officer, Davis Bamuleseyo, revealed at a business forum on Monday that the company will send the first consignment of T-shirts on February 23.Phenix manufactures garments...

US and Mauritian officials met in Mauritius on February 5-6 to discuss implementation of the United States-Mauritius Trade and Investment Framework Agreement (TIFA). The meetings, which were co-led by Assistant U.S. Trade Representative for Africa Florizelle Liser and Mauritian Foreign Affairs, International Trade, and Cooperation Minister Madan Dulloo, were the first held under the TIFA’s bilateral Council on Trade and Investment (TIFA Council), which monitors trade and investment relations, identifies opportunities for expanding trade...

All is not lost for Uganda under the Africa Growth and Opportunity Act (AGOA).Phenix Logistics, a local Ugandan garment maker has just received its first order to export apparel to the US from Edun Live, a high end brand owned by rock star and pro-Africa activist, Bono and his wife, Ms Ali Hewson.The exports to America are under the AGOA that was signed into law in May 2000. AGOA provides for duty-free access to the US market for virtually all products.Thirty-seven of the 48 sub-Saharan African countries are eligible for benefits under the...

The chairman of the Swaziland Textile Association David Hsia has stated that the extension of the AGOA provision to 2012 will not come with dramatic changes in terms of production costs in the local textile industry.The provision states that the United States of America (USA) Congress had approved the extension of the Third Country Fabric provision of the African Growth Opportunity Act (AGOA) to 2012. In essence, this means countries like Swaziland would have to source raw material locally in terms of textile products.In an interview with...

Malawi’s government says thorns and pebbles have been cleared on the African Growth and Opportunity Act (AGOA) path and the country’s economy reaped US$47.4 million last year from exports to the United States of America (USA) between January and October through the AGOA trade window.Malawi seems to be stepping out from the past where the total value between Malawi and the United States fairly remained constant. For some years, bilateral trade figures between the two countries—although skewed towards net exports from Malawi—the...

At least 500 African and American business executives are expected to meet in Houston, USA on 7th February to promote foreign direct investments into Sub-Saharan Africa.Organisers said the executives will be participating in the first US International Investment and Finance Forum for Projects, Trade, Development and Capital Equipment.The forum is being hosted by a US-based equipment company, EquipXp in conjunction with Nigeria Community and Friends/NCF Investment Inc., an organisation of Nigerian businessmen and women based in the US.NCF's...

The Export Processing Zone (EPZ) is confident the struggling textiles industry will be back on its feet after the US extended the African Growth and Opportunity Act (Agoa) fabric provision.Already, some investors want to return to Kenya while now ones have sent inquiries from EPZ on how to set up factories.EPZ operations manager John Akara said the extension of the fabric rule was good news for the industry that had been rocked by uncertainties."It now means that manufacturers can plan for long-term programmes without any fear of being...

Even though the American public's attention to Africa has wavered at times, help provided by the United States for the continent's many humanitarian and development challenges has been remarkably consistent, says former U.S. Ambassador David Shinn.Shinn, an adjunct professor at George Washington University in Washington, made his comments at a meeting of the Chinese Association for International Understanding (CAFIU) in Beijing. The organization was established in 1981 by social and political activists to promote international understanding...

World Trade Organisation Secretary-General Pascal Lamy warned African trade ministers today against pushing too hard in trade negotiations because the failure of the talks would hurt poor economies most.WTO international trade talks known as the Doha Round were launched in 2001 seeking to increase exports by poor nations.But they hit a snag in July mainly due to disagreements over farm subsidies in developed countries.“If Doha negotiations fail, we all know that the biggest losers are African countries,” Lamy told a conference of African...

The Government should take advantage of the extension of the African Growth and Opportunity Act (Agoa) facility to 2012 to reorganise the garment industry that is on the verge of collapse.The chairman of Kenya Garments Manufacturers Association, Mr Thomas Puthoor, said that high production costs arising from the high cost of fuel, electricity, transport and a huge wage bill has made Kenya one of the most expensive areas in the world to operate from.Mr Puthoor told Nation: "We are competing against countries like China, India, Bangladesh,...

A Libyan textile company has acquired a 60% stake in Tri-Star Apparels, giving it effective control over the only Ugandan firm exporting clothes to the US under the duty-free African Growth and Opportunities Act (AGOA).Sources close to the deal revealed that the Libyan Africa Portfolio (LAP) Textiles will form a partnership with the Government, which will retain a 30% stake, while Tri-Star will keep 10% shareholding."Lap Textiles, a Libyan company, has acquired majority shares in the Apparels Tri-Star, while the Government and Tri-Star will...

In a drive to improve economic activity in the Liberian marketplace in relation to the exportation of Liberian made goods, positive signals have been received by the Liberian business community on the qualification of Liberian goods for direct exportation to the United States of America.Speaking to scores of journalists at the Executive Mansion, Presidential Press Secretary Cyrus Badio disclosed that the rights to export Liberian goods to the United States market is predicated upon the signing of the African Growth and Opportunity Act(AGOA)...

The following is a statement by the White House Press Secretary: The Bush Administration is committed to reducing barriers to trade and investment as a means to advance hope, opportunity, and prosperity in both developed and developing countries. In this regard, the African Growth and Opportunity Act (AGOA) is the cornerstone of the Administration's policy to encourage trade and investment in sub-Saharan Africa. On December 20, President Bush signed legislation extending certain key provisions of the African Growth and Opportunity Act....

Kenyan manufacturers on Wednesday welcomed the third-country fabric provision of the African Growth and Opportunity Act (AGOA) until 2012, which allows eligible African countries to export apparel to the United States even if the fabric came from another country.The provision was set to expire in 2007, but the U.S. House and Senate leaders forged an agreement on the extension earlier last Friday.Chairman of the Kenya Apparel Manufacturers and Exporters Association (KAMEA) Jas Bedi welcomed the AGOA extension, hailing the new bill as a good...

The commodity price boom continues to boost South Africa's exports to the US, as well as those of major energy exporters such as Nigeria and Angola.In the nine months to September, South Africa exported $5.6 billion (R39.3 billion) worth of goods to the US, almost as much in value as total exports in 2005. The pace of growth over the comparable period last year accelerated to 30 percent from 29 percent in the eight months to August and 25 percent in the six months to June.Only $1.3 billion of local exports were imported into the US under the...

As one of its final acts, the 109th U.S. Congress approved legislation that would normalize trade relations with Vietnam and would extend trade preferences for Andean and sub-Saharan countries as well as more than 100 other developing nations.The Senate passed the bill December 9 by a 79-9 vote as part of a larger legislative package that also would expand oil and gas drilling rights in the Gulf of Mexico and would extend certain business tax cuts. Earlier, the House of Representatives passed separate pieces of legislation with identical...

Agricultural trade between South Africa and the United States of America (US) should improve during the first half of 2007, the Department of Agriculture said on Monday."During the first half of next year, trade in citrus, table grapes, apples and beef between the two countries should be enhanced," the department said in a statement.Agriculture and Land Affairs Minister Lulama Xingwana is in the US holding bilateral trade talks with her counterpart Mike Johanns, amongst others.The US remains South Africa's number one trading partner in terms...

South African President Thabo Mbeki has arrived in Washington for talks with his US counterpart George W Bush to discuss, among other things, bilateral political and economic relations.Deputy Foreign Affairs Minister Aziz Pahad said in Pretoria that Mbeki and Bush would meet at the White House today."The meeting is important because it will afford the presidents an opportunity to review decisions taken at their last meeting last year," Pahad said.Some of the issues discussed at the previous meeting included conflict resolution and...

Today, the U.S. House of Representatives approved H.R. 6406, a Bill addressing a number of trade issues, by a 212-184 vote.The legislation continues ongoing U.S. humanitarian efforts by creating economic opportunity for developing countries through trade. It also extends permanent normal trade relations (PNTR) with Vietnam. Finally, the bill includes 500 thoroughly vetted tariff reductions on products that are not produced in the U.S. These tariff reductions help lower costs for U.S. manufacturers, retailers and consumers."This legislation...

South African manufacturers of motor vehicles, parts and accessories have recorded excellent exports to the United States this year, based on recently released trade data. This shows that for the year to September 2006, auto exports (comprising HS chapter 87) to the US were worth US$ 392mn, exceeding comparative figures for 2005 by 84% and even full-year 2005 figures by 36%. Some of the industry’s export success can be attributed to AGOA, which removes import tariffs on a number of Sub-Saharan Africa’s exports to the US. So far this...

Unless there is a legislative extension by Congress, the Generalized System of Preferences (GSP) program is set to expire on Dec. 31, 2006, for countries such as Bangladesh, Brazil, India, Philippines, Sri Lanka, and many others. African Growth and Opportunity Act (AGOA) beneficiary countries will not be impacted by the expiration of GSP as the GSP program for AGOA beneficiary countries such as Kenya, Nigeria, Senegal, and South Africa will not expire until Sept. 30, 2015. Romania and Bulgaria will no longer be eligible to be GSP beneficiary...

Two critical trade programs, the Generalized System of Preferences and the Andean Trade Preference Act, are set to expire at the end of 2006. In addition, new legislation that would grant trade preference benefits to Haiti and improve the existing Africa Growth and Opportunity Act are before Congress for consideration. These trade programs make important contributions to the economies of the countries that they favor and bring benefits to American businesses and consumers. Congress should fit the debate about these programs into the...

The recent struggles of Tri-Star Apparel appear to have set off a chorus of gloom in the Ugandan press and predictions of failure both for the country's apparel sector and Uganda ability in general to benefit from the African Growth and Opportunity Act (AGOA).These reports ignore the reality of AGOA's full performance and potential and miscast the importance of the role of government in stimulating industrial development.When the US Congress enacted AGOA in 2000 it presented Africa with an opportunity, not a guarantee. To his enduring...

Malawi's government and the private sector have differed on implementation of Agoa statues that bans export of garments made from imported materials beyond 2008.Under African Growth Opportunity Act (Agoa), developing countries like Malawi are allowed to export garments made from imported raw materials to the United States of America (USA) on preferential treatment.The private sector want to continue exporting garments from imported materials under Agoa, while government are for utilization of local materials.Ministry of Industry, Trade and...

Selected officers of the Nigeria Customs Service (NCS) would soon undergo a three-day training to be conducted by United States officials. The training will be centered on effective regulation and implementation of the African Growth Opportunity Act (AGOA), a US policy that seeks to promote the importation of certain goods into its market.Slated to begin tomorrow, the training would involve Customs' officers already working in the various ports of exit of goods meant for the US market.The training session is expected to put them through...

Of all the free-trade pacts signed by the United States over the last decade, perhaps none is as uncontroversial as the African Growth and Opportunity Act (AGOA). Providing duty-free access to exporters in sub-Saharan Africa threatens few if any American jobs while spurring industry in some of the poorest countries in the world. Yet a vital provision of the act is set to expire, and, for the moment, Congress appears more interested in political gamesmanship than in making a painless decision to help some of the world's neediest people.The...

On his way to attend the 5th Forum on China-Africa Cooperation (FOCAC, November 4-5, 2006, Beijing), President Abdoulaye Wade of Senegal stopped over in Washington, DC and had discussions with American policymakers. In one of the meetings, the subject of China came up and Wade was asked if Africans were aware that China was only interested in Africa’s oil and other raw materials. President Wade responded by asking:” Do you think we are children?” A few months ago, when she addressed a group of development specialists in Washington, DC,...

SACU exports to the US have grown by 25% in the 9 months to September 2006, compared with the same period in 2005. Much of this increase is due to robust trade in minerals and metals, the Southern African Customs Union’s (SACU) largest export sector.Total exports to the US were valued at US$ 6.2 billion compared with US$ 5 billion the previous period. Of this, US$ 1.7 billion was exported under AGOA, meaning that it entered the United States duty free, although other exports may have likewise obtained duty-free entry where current US...

The South African Customs Unions (SACU) has formally accepted an offer made by the US government to progress a so-called trade and investment cooperation agreement (Tica), following the breakdown of the more ambitious free-trade agreement (FTA) talks earlier in the year.South Africa's chief negotiator Xavier Carim tells Engineering News that it became apparent in about April that the Sacu-US FTA process would not meet the US's internal target of having all its trade negotiations at, or near, conclusion by the end of 2006. This deadline was...

Several countries including Malawi are lobbying for a change of the African Growth Opportunity Act (Agoa) trade agreement, a leading player in the garment sector said Monday.The Act states that from March 2008 all Agoa beneficiaries would be required to produce textile from locally grown raw materials for export to the initiators, United States of America, duty free. But local producers use imported fabric and other raw materials to produce their garments.Chairman of the Garments and Textile Manufacturers Association of Malawi (GTMA),...

The collapse of free trade talks between the Southern African Customs Union (Sacu) and the US meant South Africa should now concentrate on working closely with Americans on bilateral trade negotiations, a senior department of trade and industry (dti) official said yesterday.This could be done with a view to resuming talks on a free trade agreement (FTA) down the line, said Iqbal Sharma, the department's acting deputy director-general of international trade and economic development.However, Sharma said it was difficult to tell when talks...