Legislation that will help provide stability for apparel and textile firms sourcing from sub-Saharan Africa and Central America, and also renews trade sanctions on Burma, was finally passed yesterday (2 August) by the US Senate and the House of Representatives.
Their passage follows a row over funding for the African Growth and Opportunity Act (AGOA), which temporarily halted the bills' progress last week.
It also puts an end to uncertainties over the third-country fabric provision under the African Growth and Opportunity Act (AGOA), which had been set to expire in September 2012.
It is estimated that almost 95% of apparel imported from AGOA nations is made with third-country fabric, and the provision's extension to September 2015 now means apparel produced in sub-Saharan African countries made from third-country fabric, or fabric originally produced anywhere in the world, will continue to enjoy duty-free access to the US.
The Republic of South Sudan has also been added to the list of countries eligible for AGOA duty-free benefits on products including apparel, footwear and textiles
As far the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), is concerned, the fixes apply to rules of origin for textile products from Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
In particular, the modifications provide certainty of duty-free treatment for women's and girls' woven pyjama bottoms and clarify how certain items will be treated on the textiles "short supply" list of the FTA. Another change would be to fix a long-standing loophole under the trade pact by requiring all sewing thread, monofilament and plied, to originate in the US/DR-CAFTA region in order for products to qualify for preferential tariff treatment.
The bill also renews for another three years an import ban that has been in place since 2003 to prevent goods from Burma entering the US market. But it also leaves the Administration with the authority to waive or terminate the import sanctions.
The legislation must now be signed by President Barack Obama before being implemented.
Their passage follows a row over funding for the African Growth and Opportunity Act (AGOA), which temporarily halted the bills' progress last week.
It also puts an end to uncertainties over the third-country fabric provision under the African Growth and Opportunity Act (AGOA), which had been set to expire in September 2012.
It is estimated that almost 95% of apparel imported from AGOA nations is made with third-country fabric, and the provision's extension to September 2015 now means apparel produced in sub-Saharan African countries made from third-country fabric, or fabric originally produced anywhere in the world, will continue to enjoy duty-free access to the US.
The Republic of South Sudan has also been added to the list of countries eligible for AGOA duty-free benefits on products including apparel, footwear and textiles
As far the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), is concerned, the fixes apply to rules of origin for textile products from Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
In particular, the modifications provide certainty of duty-free treatment for women's and girls' woven pyjama bottoms and clarify how certain items will be treated on the textiles "short supply" list of the FTA. Another change would be to fix a long-standing loophole under the trade pact by requiring all sewing thread, monofilament and plied, to originate in the US/DR-CAFTA region in order for products to qualify for preferential tariff treatment.
The bill also renews for another three years an import ban that has been in place since 2003 to prevent goods from Burma entering the US market. But it also leaves the Administration with the authority to waive or terminate the import sanctions.
The legislation must now be signed by President Barack Obama before being implemented.
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