Cotton Program > Highlights

ACTIF gains consensus on AGOA modifications - “White Paper” produced

In what can only be described as a major achievement and a credit to the spirit of unity and common purpose within the region, ACTIF members from 14 sub-Saharan countries covering the spectrum of all interests across the textile and apparel value chain have arrived at a common position on proposed modifications to the AGOA Reinforcement Bill. These are designed to alleviate and reverse the post-MFA market declines, job losses and factory closures that Africa has experienced in the past year, due in the main to unrestrained competition from well-established and subsidized low wage producers.

The “White Paper” proposes that the current AGOA third-country fabric Special Rule be gradually replaced by a simple value-added rule of origin based on the GSP rules of origin, with the specific percentages to be worked out in consultation with US stakeholders. The proposed new value-added rule of origin would apply to all AGOA beneficiary countries. Another significant modification is the call to include African textile mill products (yarns, fabrics and home furnishings, including made-ups) as being eligible for duty-free entry to the United States, which were hitherto denied preferential access.
 

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