10.20.08
President George W. Bush on October 16 signed into law HR 7222. The AAFA-supported bill makes critically important changes in the so-called third country fabric provisions in the Africa Growth and Opportunity Act (AGOA). It eliminates the unworkable abundant supply program (which will make it easier to source third country denim in Africa) and extends third country fabric provisions to Mauritius. The legislation also creates a new Earned Import Allowance Program for the Dominican Republic which will supply essential help for Dominican trouser producers and their US fabric suppliers. Also included in the legislation is a one-year extension for Colombia and Peru, and six month extensions for Bolivia and Ecuador (which may be renewed for an additional six month period), under the Andean Trade Preferences Act (ATPA). Finally, the bill contains a one-year extension for the Generalized System of Preferences (GSP) program.

10.6.08
Last week, Congress approved an AAFA-supported package (HR 7222) of trade provisions related to the Caribbean Basin, the Andean region and Africa. The bill makes critically important changes in the so-called third country fabric provisions in the Africa Growth and Opportunity Act (AGOA). It eliminates the unworkable abundant supply program (which will make it easier to source third country denim in Africa) and extends third country fabric provisions to Mauritius. The legislation also creates a new Earned Import Allowance Program for the Dominican Republic which will supply essential help for Dominican trouser producers and their US fabric suppliers. Also included in the legislation is a one-year extension for Colombia and Peru, and six month extensions for Bolivia and Ecuador (which may be renewed for an additional six month period), under the Andean Trade Preferences Act (ATPA). Finally, the bill contains a one-year extension for the Generalized System of Preferences (GSP) program.

05.27.08
On May 16, the U.S. Trade Representative published its annual report on the operation of the Africa Growth and Opportunity Act (AGOA). The 154-page report to Congress provides an overview of the U.S. trade and investment relationship with sub-Saharan African countries. The report notes that 40 sub-Saharan African countries are currently eligible for African Growth and Opportunity Act (AGOA) benefits. Twenty-seven of these countries are eligible to receive AGOA’s apparel benefits. Since its inception in 2000, AGOA has helped increase U.S. two-way trade with sub-Saharan Africa. In 2007, U.S. total exports to sub-Saharan Africa totaled $14.4 billion, more than double the amount in 2001. U.S. total imports from sub-Saharan Africa more than tripled during this period to $67.4 billion.

07.07.08
On July 1, the U.S. International Trade Commission (ITC) announced the conclusion of its investigation into the use of denim fabric under the so-called abundant supply provision in African Growth and Opportunity Act (AGOA) countries in fiscal year (FY) 2007. The ITC determined that there was a significant shortfall of more than 8 million Square Meter Equivalents (SMEs) in the use of African-made denim fabric under AGOA. Because of the shortfall, US apparel importers must now use approximately 30 million SME worth of African denim in FY 2008, even though the ITC has previously determined that there is only about 2/3 that amount available.

If the ITC determines that US apparel importers failed to use sufficient quantities of African denim during its next review in July 2009, which seems a foregone conclusion, the President will be required to remove duty-free benefits for US imports of denim products from AGOA countries that use third country denim in FY 2009. AAFA has endorsed legislation that would eliminate the AGOA abundant supply provision.

01.22.08
On January 17, Representative Jim McDermott (D-WA) introduced a bill (HR 5059) to make several changes to the Africa Growth and Opportunity Act (AGOA). If enacted, the bill would repeal the so-called abundant supply provision (which conditions the ability to use third country fabric) and would remove current restrictions on using third country fabric in Mauritius. The legislation has been referred to the House Ways and Means Committee.

12.17.07
The US International Trade Commission (ITC) has begun investigations to determine the amount of certain denim fabric used during fiscal year 2007 in lesser developed beneficiary sub-Saharan African (LDB SSA) countries as well as whether such fabric will be available in commercial quantities for use in those countries during fiscal year 2009 under the African Growth and Opportunity Act (AGOA). Requests to appear at the April 9, 2008 public hearing are due March 18, 2008. Final written comments are due April 28, 2008. Meanwhile, Members of Congress are reportedly planning to introduce legislation that would lead to the repeal of the so-called “abundant supply mechanism,” a provision that was approved by Congress last year under which this investigation is being conducted.

12.10.07
As part of HR 6406, the 109^th Congress also approved an extension of the third country fabric provision under the African Growth and Opportunity Act (AGOA) until September 30, 2012.  That extension also includes a provision that voids the third country fabric provision for components deemed in "abundant supply."  During the initial year, the law designates “denim” as being in abundant supply, potentially complicating the ability of companies to use third country denim if they do not use sufficient quantities of African denim.  Congress may revisit that provision in the coming months.  In the meantime, the U.S. International Trade Commission is conducting investigations to determine denim capabilities and usage. (See AAFA Comments #1 and #2 on investigations that were conducted during 2007).

10.01.07
The US International Trade Commission (ITC) announced September 25 that it found that denim continues to be in "abundant supply" for the 2008 fiscal year for use in less developed beneficiary sub-Saharan African countries in the production of denim apparel receiving US duty free treatment under the African Growth and Opportunity Act (AGOA). Based on the ITC's recommendations, the President must now determine the actual level of denim deemed in "abundant supply.

05.11.07
AAFA submitted comments April 30 to the US International Trade Commission (ITC) regarding the ITC's interim regulations on commercial availability under the African Growth and Opportunity Act (AGOA), otherwise known as "abundant supply." The mechanism allows the ITC to require manufacturers of apparel under AGOA's third-country fabric provision to use certain yarns and fabrics in specific quantities found to be in "abundant supply" for a period of one year if the specific yarn or fabric is indeed available in commercial quantities in sub-Saharan Africa. In its comments, AAFA urges the ITC to be as open and transparent as possible and to clarify some of the confusion generated by the interim regulations, including who can petition for designations under the procedures and who can comment on those petitions as well as allowing petitions to remove items from abundant supply.

AGOA News Archive 2006