US Garment Brands Seek Early Renewal Of AGOA
Garment and fashion brands in the United States have appealed to renew the African Growth and Opportunity Act (AGOA) at the earliest.
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 import materials and finished goods from Africa at a competitive price.
The brands said 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.
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.