Politics
Will the Sun Set on AGOA?
D’Avignon said, “But for the companies looking for a price cut, the threat of AGOA not being renewed, not being a permanent program, is scary.” AGOA expires Sept. 30, 2015 and as D’Avignon added, “Congress tends to wait to the last minute to do things.” She also advised, “In today’s supply chain, U.S. apparel and footwear companies need to know ahead of time to plan. Most companies plan 18 months out; 2015 isn’t a long way away.”
All African countries are not eligible for AGOA. They have to be democracies to qualify. When Madagascar lost its AGOA preferences a few years ago due to a coup, the amount of trade with the U.S. plummeted. “We’d like to see trade expand,” Lamar said. “It’s not a hard argument to make. It’s a question of if Congress can get it passed on time.”
Empowering piece of legislation
The Africa-America Institute is a U.S.-based international education and policy organization. Today’s panel discussion is entitled “AGOA 2015: Positioning Renewal to Ensure Better Human Capacity Training.” The good news is that AGOA has been around 14 years and both the U.S. and Africa like the law because it is an empowering piece of legislation for all involved, said Amini Kajunju, president and CEO of the Africa-America Institute, in an email. “I believe that there is a low chance that it will not get passed again,” he said.
There are those who say that AGOA has been under-utilized by many African countries. If African companies use AGOA more and all of its benefits, then it gives U.S. companies viable trading partners and supplies for raw materials and value-added products needed to build the U.S. economy, Kajunju said. And, it gives U.S. consumers a wider array of choices of interesting and unique products.
“This piece of legislation continues to be an important component of the relationship between Africa and America,” Kajunju said. “I believe African governments and businesses want to get better at using AGOA to import their goods into the U.S. If AGOA does not get passed, it (will) seriously weaken the relationship and communicate a vote of no confidence to Africans.”
Panelists in the discussion included Lamar; Witney Schneidman, non-resident fellow of the Africa Growth Initiative with The Brookings Institute; Steve Hayes, president and CEO, The Corporate Council on Africa; Florizelle Liser, assistant U.S. Trade representative for Africa, Office of the U.S. Trade; and Gregory Simpkins, majority staff director of the House Subcommittee on Africa, Global Human Rights and International Organizations.
After the panel discussion in D.C., the Apparel & Footwear Association is headed to Cape Town next week for the Source Africa trade show. The goal: to connect U.S. and other foreign buyers with African manufacturers, both to produce in Africa for U.S. consumption and to establish intra-Africa trade.
Source: AFK Insider
