By Daniel Gumm
AT the 10th annual AGOA Forum in June, trade hubs across Africa – there are two others in East and Southern Africa – were highlighted for helping to make the law effective.
And the U.S. Government announced the Africa Competitiveness and Trade Expansion initiative — US$120 million over four years — to fund their continued work.
As it marked its 10th year — during which exports to the U.S. under the trade preferences it accords eligible countries have quadrupled – the main issue for the law is extending it, while ensuring that Africa and African countries continue to improve their competitiveness in world markets.
AGOA is set to expire in 2015 and a key provision for apparel manufacturers like World Apparel Group — an exemption on tariffs on products made with fabric from a third non-AGOA country — is set to expire next year. Ending the laws would spell catastrophe for the apparel manufacturers in Africa.
Clinton reassured stakeholders at the AGOA Forum that, “the Obama Administration will work with Congress on a seamless renewal of AGOA beyond 2015 — and on a renewal of the important third-country fabric provisions in the coming months so that we also have a consistent regimen,” Clinton said at the Forum.
But, she added, the success of AGOA requires a collaboration. The law itself is not going to solve Africa’s ability to compete in world markets. African countries need to develop strategies to make sector’s competitive, pursue deeper regional integration and reduce corruption to ensure their companies are competitive in world markets.
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