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China was not the root cause of the problem facing the clothing and textile industries as retailers would simply buy from other low-cost Asian countries if imports from China were curbed, Hoosen Rasool, the chief executive of the clothing, textile, footwear and leather sector education and training authority said this week.The real problem, he said, was that the industries were stuck in market segments dominated by low-cost Asian manufacturers."Any possible reduction of imports from China will likely provide only fleeting relief to the...

South Africa's beleaguered clothing and textile industry was thrown a potential lifeline yesterday when China announced it would voluntarily curb the exports of its textiles and clothing to South Africa."China will voluntarily limit the export of garments and some textile items to South Africa," said the Chinese ambassador to South Africa, Liu Guijin. Liu was presenting China's Africa policy to African diplomats, international analysts and the media in Pretoria.The department of trade and industry has been in protracted talks with its...

Riding a wave of higher oil and commodity prices, and vigorous global trade growth, including recovery in trade in office and telecommunications equipment, developing countries saw their share in world merchandise trade rise sharply in 2004 to 31%, the highest since 1950, according to WTO figures released in 2005.However, a marked slow-down in overall economic growth that began in the second half of 2004 is likely to decelerate world merchandise trade growth from 9% in 2004 to 6,5% in 2005, WTO economists say.“As trade continues to play a...

Uganda's AGOA office is working around the clock to have a spinning mill ready before the expiry of third country fabric sourcing in September 2007."We need to have our own fabric source by then, otherwise all these mushrooming textile factories will close shop," Susan Muhwezi, the special presidential assistant on AGOA, said last week.She said Gherzi, a Swiss firm had been contracted to look at the viability of setting up a spinning mill."We need to be at the point of producing yarn for export and local use by September 2007 so that the...

China enjoyed an estimated 20% rise in revenue, profits and exports in 2005 despite trade rows with the US and the EU, according to a report from the China Chamber of Commerce for Import and Export of Textiles cited by Xinhua news agency.Sales revenue for the year totalled CNY2trn (US$250bn) as profits reached CNY66bn and exports were CNY116bn.The chamber said the increases had been driven by a ramp up in investment into fixed assets as well as technological innovations.Sales, revenue, sales value and industrial added value of large-sized...

Is the African Growth and Opportunity Act (AGOA) dead in the water? Many Taiwanese garment manufacturers in Swaziland believe it is.On a research trip to Swaziland last week for the Brenthurst Foundation, I witnessed a fairly bleak picture emerging.With all the hype about China's unfettered entry into the global textile trade and the attendant problems for other exporting countries, it seems other important considerations of competitiveness and sustainability need to be considered.The strong rand was at the top of the list of problems the...

Twenty-four members of the US House of Representatives sent a letter to President Bush yesterday (8 December) urging the United States to take a strong stand on two textile-related issues at the upcoming World Trade Organisation talks.The Members want the US to oppose a European Union-led initiative to grant Least Developed Countries (LDCs) duty-free and quota-free access to all developed markets.They are also seeking a Special Textile Sectoral (STS) that would cover textiles and clothing within the non-agricultural market access (NAMA)...

Uganda has failed to fully exploit the African Growth and Opportunities Act (AGOA), a US tariff and quota free initiate, Moses Byaruhanga, the presidential advisor on political affairs, has said.Byaruhanga said the Government was expanding market to increase employment."Apparels Tri-Star, the leading beneficiary of AGOA, has employed only 2,000 people. Other firms have failed to command regular production to exploit the vast American markets," he said.Byaruhanga , who was on Saturday addressing Mukono Christian University students at Bishop...

Blanche Gooding, Treasurer of the Sierra Leone Chamber of Commerce Friday disclosed that the African Growth and Opportunity Act (AGOA) was designed to enhance trade in Africa.Gooding who was speaking at a press briefing at the Chamber's Guma Building office says the Act provides unprecedented opportunities, which is aimed to promote increased trade and investment between United States and African countries, and also increased access and opportunities for US investors and African countries."The AGOA Act offers opportunities and encourage...

The stalled free trade agreement between the US and the Southern African Customs Union (Sacu) will fail unless South African business pushed the country's trade negotiators.This warning was issued by Duane Newman, the automotive industry group leader and a partner at Deloitte, who said African countries were questioning why they should care about this proposed agreement when they had the African Growth and Opportunity Act (Agoa).But Newman warned at a briefing on Friday hosted by Ford Southern Africa that this attitude was dangerous.Agoa is...

Various activities have been launched in a bid to enable Ethiopia benefit the most out of the African Gross Opportunity Act (AGOA), Ministry of Trade and Industry said.The country is not exhaustively utilizing the opportunity of AGOA though it is steadily increasing the volume of exports, information and public relations office head with the ministry Hailu Abebe told ENA yesterday.Oracle Business IntelligenceHailu said lack of competitiveness in the international market both in quality and price of products, lack of skilled manpower, and...

The US government on Wednesday dropped all pending decisions to impose quotas on Chinese textile imports after the two nations clinched a deal to regulate the trade.The Commerce Department said all 24 outstanding requests by US industry groups for so-called safeguards on textile imports had been scrapped in light of the agreement reached two weeks ago.Franklin Lavin, undersecretary of commerce for international trade, said the agreement "establishes conditions on trade in the vast majority of products covered by these cases"."Based on these...

The SA Clothing Industry Export Council has welcomed the US-China textile bilateral agreement that in effect reintroduces quotas on 34 categories of clothing and textiles until 2008. The agreement will result in renewed interest from US retail companies in sourcing from South Africa and other sub-Saharan African countries.South Africa's exports declined by 38 percent this year following the lifting of the Multi-Fibre Arrangement (MFA) on January 1. The end of the MFA strangled trading opportunities with other clothing manufacturing countries...

Apparels Tri-Star wants government's support to set up a spinning mill that could reduce the cost of production.Velupillai Kananathan, the Tri-Star chief, said yesterday that the move would be in line with the end of AGOA's Third Party Fabric Sourcing in September 2007.He was speaking during a tour of the Bugolobi-based plant by the economic and regional labour affairs attaché at the US Nairobi embassy, Randolph Fleitman and Nathan Carter, the economic and commercial officer at the US Kampala embassy."We have a huge market out there but we...

Since the publication of the African Growth and Opportunity (AGOA) Act a few years, Kenya and a number of other African countries have reaped some benefits from exporting textiles to the US. Last year, for example, the country earned some Sh21.5 billion from the trade, a good figure by all means.The principle behind Agoa was to facilitate trade between African states and the US. The latter ordinarily has stringent and restrictive policies that commonly knock out the developing countries.Like any other policy, Agoa is time-bound. Were it not...

AGOA earned Kenya about Sh21.5 billion last year. But much remained to be done to broaden exports to the US, a top American trade official said yesterday.However, the African Growth and Opportunity Act (AGOA) regional adviser, Mr Finn Holm-Olsen, said Kenya should look further than exporting textiles to his country.Oracle Business IntelligenceUnder AGOA, the 37 eligible African countries can export almost any product (nearly 6,500 tariff lines) to the US duty-free."Kenya should diversify its exports by including handicraft and cut flowers,"...

U.S. Agency for International Development (USAID) Assistant Administrator Lloyd O. Pierson has inaugurated a West Africa Trade Hub in Dakar, Senegal. The Dakar hub is designed to promote improvements in Africa's trade capacity, boost international exports and help businesses take advantage of the African Growth and Opportunities Act (AGOA) - a law that provides trade preferences to countries that are making progress in economic, legal and human rights reforms.This latest opening brings the total of USAID-funded hubs for global...

South African-based Turkish-owned textile group, Sesli Textiles, has successfully completed transfer of its manufacturing operations to a new, 30 000 m2 factory in Robertville, Johannesburg, to accommodate increased local and export demand.The company supplies markets via wholesalers and chain stores throughout Southern Africa. The new factory and its hi-tech equipment represents a multi-million-rand direct investment in South Africa.Local yarn manufacture is planned for next year and further investment is planned which could double or even...

The on-going rift between employees of Caratex - a garment manufacturing company - and its management took a dramatic twist on Monday when the employees reported the management to the Department of Customs for importing overseas garments labelled "Made in Botswana".After the tip off on Monday, police and customs officials moved in swiftly and shut down the Caratex II factory - a subsidiary of Caratex.After the closure, the over 80 employees of the company were sent home immediately.An official at the Department of Customs confirmed the lock...

The US and China had agreed to a deal on the import of mainland clothing and fabric, resolving a bitter trade dispute, a major Chinese textile association said yesterday."Both the US and China have compromised in reaching this textile pact," said China National Textile and Apparel Council spokesperson Sun Huaibin.US imports of Chinese-made textiles would be limited to annual growth rates of between 10 percent and 17 percent until 2008, a concession by China, which wanted it to expire in 2007, he said.The deal provides for a progressive...

Today, U.S. Agency for International Development (USAID) Assistant Administrator Lloyd O. Pierson inaugurated a West Africa Trade Hub in Dakar, Senegal.The Dakar hub is designed to promote improvements in Africa's trade capacity, boost international exports and help businesses take advantage of the African Growth and Opportunity Act (AGOA) - a law that provides trade preferences to countries that are making progress in economic, legal and human rights reforms.This latest opening brings the total of USAID-funded hubs for global...

The US and China have agreed a provisional deal to restrict 34 categories of Chinese textile and clothing exports, according to industry sources.The two parties are expected to sign a deal this week that will govern the export of those goods until 2008.Chinese textile and clothing exports have leapt more than 50 per cent in eight months since global trade quotas expired at the start of 2005, causing widespread concern that other countries’ industries will suffer badly.Although there has been no definitive pact made, both sides have...

Five years after its enactment by the United States Congress, the African Growth and Opportunity Act (Agoa) is being praised for creating thousands of jobs in Kenya and other countries but is also being faulted for falling short of key goals envisioned by its sponsors.The preferential trade programme was described last week by US Congressman Chris Smith as perhaps the most significant American initiative ever undertaken in regard to Africa. Smith and other speakers at an October 20 Agoa review organised by a US congressional subcommittee...

Even though the African Growth and Opportunity Act (AGOA) has been successful in stimulating trade between the United States and sub-Saharan Africa, much remains to be done on both continents to further enhance trade and economic development, says Stephen Hayes, president of the Corporate Council on Africa (CCA).In an October 27 interview with the Washington File, Hayes said that "AGOA has been very important and a very positive factor in U.S.-Africa relations," but he cautioned that "a lot of [the 37 AGOA-eligible] countries have not been...

Ever since Uganda started exporting apparel to the US under the African Growth and Opportunities Act (AGOA), the country has not exported a stitch of locally-produced fabric and AGOA has stimulated little growth in the cotton sector.According to statistics from the Trade Law Centre for Southern Africa, US imports of duty-free textiles under AGOA since 2003 have totalled $7.6m (about sh14b), and all of that is garment exports Apparel Tristar Limited.Apparel Tristar, a company which makes garments from imported fabric, has created 2,600 jobs...

Member countries of the East African Community (EAC) are to formulate a common textile policy to promote the cotton sector.The Minister of Trade, Tourism and Industry, Mr Daudi Migereko, said the policy would enable the textile industry in the region to flourish and reduce the exportation of cotton for local textile industries."We cannot go on importing worn cloths.We need to regain our dignity and start wearing new cloths from textile industries in the region," he said.Migereko said he is closely working with his collegues like Mr Yahaya...

While the African Growth and Opportunity Act (AGOA) has been successful in spurring economic growth in sub-Saharan Africa by expanding exports to the U.S. market -- much remains to be done to broaden the historic legislation, especially in the area of small businesses, lawmakers say.Republican Congressman Chris Smith, the chairman of the House International Relations Subcommittee on Africa, Global Human Rights and International Operations and Donald Payne, the subcommittee's ranking Democrat each made that point -- along with Republican...

Speaking before a Congressional Hearing this morning on Capitol Hill, Stephen Hayes, president of the Corporate Council on Africa stressed that while AGOA-the African Growth and Opportunity Act-is working and is critical to growing trade between the U.S. and Africa, a more comprehensive approach is needed to strengthen U.S.-Africa trade and political relations. "U.S. businesses especially have failed to take advantage of new investment opportunities in Africa," says Hayes.Hayes testified before the House International Relations Committee's...

An alarming lack of creativity, entrepreneurship, vision and leadership was a major reason for the sorry state of South Africa's clothing, textile and footwear sector, MPs heard on Wednesday.Briefing Parliament's trade and industry portfolio committee, department of trade and industry deputy director-general Iqbal Sharma accused industry leaders of allowing opportunities to benefit from South Africa's market-access arrangements to "fly over their heads".He also noted the sector's elaborate management structures, which paid themselves high...

Tembo Steels Uganda Ltd, one of the leading steel manufacturers in the country, will by mid next month unveil a multi-million dollar stainless steel plant at their Iganga factory and embark on the exportation of the product (stainless steel) to the U.S market. The firm's Chairman, Mr Sanjay P.K, told journalists on October 10, at their Iganga plant that they have invested up to $10m in the plant with the purpose of engaging in 100 percent export of the product to the US as a means of exploiting the AGOA initiative. He said the plant would...

The US and China have failed to come to an agreement over Chinese textile exports in their latest round of talks, according to US negotiator David Spooner.Spooner said: "We have not come to an agreement that meets the needs of our domestic manufacturers and retailers".The latest discussions, which took place in Beijing, are the fourth round of meetings discussing the upturn in Chinese textile exports since global quotas ended at the start of 2005.China recorded a 75 per cent hike in sales of garments to the US during the first seven months...

Textile and apparel makers have complained about the Government's failure to support them to break through and start exporting to the African Growth and Opportunities Act (AGOA) market."There is lack of government support to the textile and apparel sector. Only Tristar is supported.This has made it difficult for operators to produce high-quality products that can penetrate the AGOA market," Santa Anzo, the proprietor of Arapapa, a fashion design company, said.Anzo said this during training of the sector's operators for export readiness to...

A delegation of about 20 United States agribusinesses will be in Johannesburg during the week of October 31 to promote trade with and investment in the southern African region.Agribusinesses in Southern Africa that participate in the program will meet with the US companies and learn about US credit facilities, trade benefits available under the African Growth and Opportunity Act (AGOA), and how to conduct business with American companies, according to a statement released yesterday by the embassy.The mission, which is hosted by the US...

Tri-Star Apparels, the only Ugandan firm exporting duty-free garments to the US under the AGOA initiative is in talks with a US garments firm, Pacific Capital Limited, to export two million pieces of garments.Tri-Star's executive director, yesterday met two Pacific Capital officials, James longford and Cliff Swenson at Premier Prof. Apolo Nsibambi's home at Bulange, Mengo in Kampala."We are negotiating a deal to supply over two million pieces of garments to them. Each piece goes for an average of US$6 (sh10,800)," Kananathan said.Longford,...

The US government has accepted a request from textile industry groups to review 13 textile and apparel safeguard petitions covering 21 categories on the grounds that they are disrupting the market.Nine of the petitions covering 16 product categories are reapplications for safeguards that previously have been implemented by the US.Talks between China and the US have so far failed to find a comprehensive solution to curb China’s soaring exports since the global system governing exports ended in January. Further negotiations between the two...

United States of America's Ambassador to Namibia, Joyce Barr says Namibia should move beyond the apparel sector and focus on other items that are eligible to enter duty free into the US market through the Africa Growth and Opportunity Act (AGOA).Around 7 000 items are eligible to enter duty free into the US market through AGOA, to which about 37 Sub-Saharan countries export.Namibia's main export to the US through AGOA remains textile and apparels.To fully capitalise on the AGOA legislation, Barr urged Namibia to focus more on the more than 6...

In a new bid to avert a damaging trade dispute with China over cheap textile imports, the trade and industry department is planning a bilateral trade agreement with Beijing to help SA limit the damage being inflicted on the domestic rag trade.SA's textile industry has been badly damaged by Chinese imports, which grew 80% in 2001-02, 196% in 2002-03 and 88% in 2003-04, leading to an estimated 36000 job losses over the past two years.The surge in imports has led to the closure of factories and reduced employment in the industry from 300000 in...

A look at the profile of South Africa’s trade with the United States shows that while total bilateral trade has increased this year compared to last year, this development is due only because of greater South African imports from the United States. South Africa’s aggregate exports over the first six months of the year remain virtually unchanged, even though there have been some sectoral fluctuations. For example, chemicals and related products have seen a surge in exports from South Africa of over 40%, while machinery exports have...

A Durban denim-clothing manufacturer is among the first to have a writ of execution issued against it as a result of rulings made in favour of the industry bargaining council by the South African Labour Court.Hein van der Walt, the director of the Confederation of Employers of Southern Africa (Cofesa), says there are another 877 manufacturers who are to have writs issued against them and, if they are forced to close, job losses could be upward of 24 000.The Labour Court has issued a writ of execution against Durban business Poodle Clothing...

Thanks to the historic African Growth and Opportunity Act (AGOA), the $11 trillion U.S. market is wide open to exports from sub-Saharan Africa's 37 AGOA-eligible countries, Assistant U.S. Trade Representative for Africa Florizelle Liser told a Washington audience September 14.She cautioned, however, that while AGOA has been successful, its overall impact has been "uneven" across the continent, and she called on African countries to further diversify their economies. "In 2004, over 98 percent of U.S. imports from AGOA beneficiary countries...

Namibia's cabinet has rescued a failing BEE deal, that of uniform-manufacturing company Tropitex, which is controlled by well-known businessman David Imbili.In terms of a Cabinet Action Letter dated June 28, Government is converting Tropitex's N$2,8 million Development Bank of Namibia (DBN) loan - which has now soared to N$3,5 million with interest - into equity and moving it into the military-owned August 26 company.This effectively means that August 26 will now inherit Tropitex's obligations to the DBN.Cabinet also decided on June 28 that...

The Proudly South African campaign could help save SA's troubled clothing and textile industry, the body's acting CEO, Herbert Mkhize, told the Johannesburg Press Club yesterday.The local industry has taken strain from the influx of cheaper Chinese imports.Last year the industry shed more than 16000 jobs. According to the South African Clothing and Textile Workers Union, about 4000 jobs were lost in the first three months of this year.Mkhize, who is also the executive director of the National Economic Development and Labour Council, said...

The island of Mauritius in the south-west Indian Ocean wants to become a duty free shopping paradise in a bid to attract tourists. But there are concerns that this development strategy might come at a heavy price.In the 1970s Mauritius took its lead from Hong Kong and Taiwan, launching a tax free zone to entice foreign investors to set up textile, clothing and jewellery factories aimed at the export market. Now the island is looking towards Dubai and Singapore for ideas to spark development. Eager to stimulate a new growth spurt, Mauritius...

The Uganda government is moving fast to amend the labour law over which American labour organisations petitioned President George Bush's administration to drop Uganda from the Agoa trade agreement.Daily Monitor has learnt that some of the sections in the law like allowing workers to form unions are to be changed. The Minister of Labour and Social Services, Ms Zoe Bakoko Bakoru, confirmed the development to Daily Monitor yesterday. "Unionisation under the law is being addressed. Once its done, all will be well," Bakoko said in a telephone...

American labour organisations have petitioned President George Bush's administration to drop Uganda from the AGOA trade arrangement.The organisations, under the American Federation of Labour and Congress of Industrial Organisations (AFL-CIO) and Unite Here, accuse the Ugandan government of failing to take steps to recognise workers rights.They accuse the management of Apparels Tri Star (U) Ltd and other textile industries in the country that are beneficiaries of the African Growth and Opportunity Act (Agoa) programme of refusing to recognise...

The African Growth and Opportunity Act (AGOA) Country Office has started a nation-wide campaign to sensitise stakeholders on how to benefit from the US-quota and tariff free trade initiative.Susan Muhwezi, the special presidential assistance on AGOA and trade, said recently that the programme would cover all the districts across the country.It will facilitate leaders on which Ugandan products can benefit from AGOA. AGOA is a US government initiative to promote trade with selected African countries.She was addressing over 200 participants at...

The United States hopes for a fair deal with China to regulate textiles trade but will "walk away" from a bad one, US Trade Representative Rob Portman said Thursday.Speaking after talks in Beijing a week ago failed to find a breakthrough to the simmering row, Portman said there were still grounds for hope."I'm optimistic about the comprehensive agreement with China because it's good for China," he told reporters."It would add certainty to an uncertain next three years," he said. Current US safeguards against Chinese textile imports allowed...

The latest round of talks between China and the United States has failed to reach a comprehensive textile agreement, although discussions are due to continue today in an attempt to reach a compromise.The two sides met in Beijing this week to try to find some way of halting soaring US imports of Chinese-made textiles and clothing. Year to date statistics released by the US government’s Office of Textiles and Apparel show that total US textile and apparel imports by volume from China are up 47 per cent in 2005 compared to 2004. However, it...