Apparel Industry Calls for Third Country Fabric Expansion in AGOA Renewal
Lawmakers should expand the third country fabric provision in the African Growth and Opportunity Act to all beneficiaries of the preference program as part of AGOA renewal legislation, said six prominent textile and apparel organizations in an Aug. 13 statement…
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that firmly urged renewal by the end of 2014. The preference program expires on Sept. 30, 2015, but stakeholders say early renewal is necessary to keep existing supply chains in place (see 14040402). The third country fabric provision, which allows lesser developed countries to source fabrics from any country globally and still export products duty-free, should also be extended for the “full duration” of AGOA renewal. “In 2012, 30,000 jobs were eliminated in Africa because Congress waited until the last minute to renew the AGOA third country fabric rule of origin,” said the organizations. “That number is sure to grow because many more jobs -- both in Africa and the U.S. -- are now at stake.” The statement urged Congress to pass a 15-year AGOA renewal bill.