Agoa.info - African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/US fashion brands urge early renewal of AGOA

US fashion brands urge early renewal of AGOA

US fashion brands urge early renewal of AGOA
Published date:
Monday, 31 July 2023
Author:
Olivia Rockeman

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 qualifying criteria for beneficiaries could be revised or the program replaced altogether.

This uncertainty has prompted fashion companies to advocate for an early renewal of the AGOA to safeguard the global supply chain.

Quoting a Bloomberg report, US fashion brands are concerned about the potential disruption to their supply chains if the AGOA is not extended or if the qualifying criteria are altered. The program allows African countries to export a wide range of products to the US without incurring any tariffs or duties. This has made it an attractive option for US fashion companies, as it allows them to materials and finished goods from Africa at a competitive price.

The AGOA has been instrumental in promoting trade between the US and Africa. It has helped to diversify African economies by encouraging investment in sectors such as textiles, apparel, and footwear. The program has also created jobs and improved living standards in many African countries.

Fashion companies argue that an early renewal of the AGOA would provide stability and certainty for businesses operating in both the US and Africa. It would allow them to plan their sourcing strategies and make long-term investments in the region. This, in turn, would contribute to economic growth and development in Africa.

Furthermore, an early renewal of the AGOA would send a positive signal to investors and businesses looking to expand their operations in Africa. It would demonstrate the US government’s commitment to supporting trade and investment in the region, which could attract more companies to explore business opportunities in Africa.

The fashion industry plays a significant role in Africa’s economic development. It is one of the largest employers in many African countries, providing jobs for millions of people, particularly women. By renewing the AGOA early, the US can help to sustain and expand the growth of the fashion industry in Africa, creating more employment opportunities and driving economic empowerment.

To end on a positive note, US fashion companies are urging the early renewal of the AGOA to ensure the continued flow of African products into the US market duty-free. They argue that a longer-term arrangement would not only benefit African economies but also stimulate investment in the region. By providing stability and certainty for businesses, an early renewal of the AGOA would support economic growth and development in Africa. It would also send a positive signal to investors and businesses, encouraging them to explore opportunities in the region. Ultimately, the renewal of the AGOA is crucial for sustaining and expanding the fashion industry in Africa, creating jobs, and driving economic empowerment.


View and download the 2023 AGOA Eligibility Review submissions (for year 2024)

View the submission by the American Apparel and Footwear Association

Read related news articles

Looming AGOA expiry puts US apparel buyers, off say experts

The Office of the US Trade Representative is backing a renewal of AGOA ahead of its September 2025 expiration, but calls for "tweaks" have faced pushback from experts that say it is more important to secure its timely and long-term renewal given its huge benefits for US apparel brands and retailers. A new report from the Office of US Trade Representative (USTR) has revealed US trade with African Growth and Opportunity Act...

08 July 2024

US-Africa trade deal turns 25 next year: AGOA's winners, losers and what should come next

The African Growth and Opportunity Act (Agoa) is a landmark piece of trade legislation enacted by the United States in 2000. Its goal is to promote economic growth, development and poverty reduction in sub-Saharan Africa by providing qualifying countries with duty-free access to the US market for over 6,500 products. By eliminating import tariffs and quotas, Agoa aims to stimulate trade, attract foreign investment and foster economic...

06 May 2024

African trade coalition backs AGOA 16-year renewal bill to boost trade prospects

The African Coalition for Trade (ACT) has voiced its support for the African Growth and Opportunity Act (AGOA) Renewal and Improvement Act of 2024 and credits the bill with creating hundreds of thousands of direct jobs in Africa and the US. The AGOA Renewal and Improvement Act of 2024 which was introduced by Senators Chris Coons and James Risch would extend the bill for 16 years until 2041 and continue to boost Africa’s duty-free status as...

18 April 2024

US apparel and footwear industry supports 16 year AGOA renewal

The American Apparel & Footwear Association applauds Senator Chris Coons (D-DE) and Senator James Risch (R-ID) for introducing the AGOA Renewal and Improvement Act of 2024.Currently set to expire in September 2025, AGOA is a pivotal trade preference program that provides duty-free access to the U.S. market, fostering economic growth and opportunity between the U.S. and eligible African countries. This program is the cornerstone of...

11 April 2024

US senators introduce bill to renew Africa trade pact through 2041 [Download copy]

A bipartisan group of senators will introduce a bill to renew the United States' trade pact with sub-Saharan Africa ahead of its expiration next year, an aide to one of the senators said on Thursday.  [    Download it here and download a summary here] The bill was introduced by Senators Chris Coons, a Democrat, and James Risch, the top Republican on the Senate Foreign Relations Committee. A cross-party group of...

11 April 2024

US manufacturing subsidies for Africa could help revive AGOA

Experts at the Center for Global Development argue that the unconventional approach could bring billions in new trade opportunities and would fit with US “friend-shoring” efforts. The US should pay ‘negative tariffs’ in Africa – essentially targeted manufacturing subsidies – to help revive its faltering African Growth and Opportunity Act (AGOA),  according to a new report from the Washington-based Center for Global...

05 April 2024

US and African civil society stakeholders seek AGOA extension

A Civil Society Organisation, Network and other stakeholders from across the United States and African Growth and Opportunity Act-eligible countries have petitioned the President of the United States of America, Joe Biden, to consider an extension of the initiative. The CSO made the plea in a letter dated February 16, 2024, titled ‘Petition for Timely Re-Authorisation and Enhancement of the African Growth and Opportunity Act Beyond...

16 February 2024

House Ways and Means Committee leadership statement on meeting with ambassadors from select AGOA countries

Ways and Means Committee Chairman Jason Smith (MO-08) and Ranking Member Richard E. Neal (MA-01) released the following statement after hosting a bipartisan roundtable with Committee members and ambassadors from several African Growth and Opportunity Act (AGOA) countries. AGOA is a U.S. trade program focused on strengthening economic ties between the United States and nations in Sub-Saharan Africa. “We appreciate the ambassadors from...

18 January 2024

WEF - How has AGOA benefited African countries?

The African Growth and Opportunity Act (AGOA) is a trade agreement between the United States and sub-Saharan African countries. Agoa has helped to increase trade and investment between Africa and the US. It has also helped to create jobs and boost economic growth in Africa. African countries are calling for it to be extended. To what extent has the AGOA goal been achieved? The duty- and quota-free access to the US market granted by Agoa...

16 November 2023

South Africa’s AGOA forum: Crafting future pathways for US-Africa trade partnership

Ultimately the African Growth and Opportunity Act (AGOA) could be extended by 16 years, that means until 2041, indicating its importance for strengthening Africa’s trade and economic cooperation with United States. That was, in fact, the main focus during Johannesburg’s early November forum that brought together more than 30 trade ministers, astute investors plus representatives from the regional economic blocs and the African Union. At...

14 November 2023

Africa-US trade: AGOA expires in 2025 - what has it achieved in 23 years?

African governments are seeking an extension of the African Growth and Opportunity Act (Agoa) beyond 2025. The law was enacted in 2000 to “encourage increased trade and investment between the United States and sub-Saharan Africa”. We asked David Luke, who specialises in African trade policy and trade negotiations, what benefits Agoa has brought for qualifying African countries and how it can...

12 November 2023

You are here: Home/News/Article/US fashion brands urge early renewal of AGOA