The U.S. Senate Finance Committee on Wednesday passed legislation that makes certain improvements and amendments to the African Growth and Opportunity Act (AGOA), America’s trade preference program for sub-Saharan Africa, and the Central America – Dominican Republic – U.S. Free Trade Agreement (CAFTA-DR).
The move follows an announcement by Congress on June 21 of an agreement to renew AGOA’s third country fabric provision and make technical changes needed to CAFTA-DR.
U.S. orders for shipment of African exports after the slated September 2012 expiration date are down 35 percent. The Office of the U.S. Trade Representative warned that African textile exports have already dropped by 27 percent in the last year.
“It is critical for workers and businesses in the U.S. and Africa that we extend this key provision before it is due to expire in September,” said U.S. Trade Representative Ron Kirk, in a statement responding to the Senate Finance Committee’s action. “Just last week, I visited a textile factory in Ghana that will likely have to close its doors and lay off nearly 500 employees if third-country fabric (provision) expires – and that is just one example.”
Senate committee approves AGOA amendments
