A trade agreement permitting duty-free imports of Kenya-made textile and clothing made by extended beyond next year.

The extension of the African Growth and Opportunity Act (Agoa), which has helped textile industries thrive, would be a welcome relief to firms at the Export Processing Zones. The companies have seen their exports drop after the removal of preferential quotas favouring poor countries.

Trade and Industry minister Mukhisa Kituyi said that three of the four countries which were against an application to the World Trade Organisation to have Agoa extended had softened their stand.

The countries which withdrew their rejection to the application made by the US are China, India and Uruguay. Only Paraguay is still against the extension. However, Dr Kituyi who spoke at the EPZ in Athi River yesterday, said Brazil has accept to intercede on behalf of African countries to have Paraguay withdraw its rejection.

The minister also said the third-country fabric rule, set to expire in September 2007 may be also extended for the benefit of countries like Kenya which still to not have enough capacity to produce raw cotton.

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