African Growth and Opportunity Act (AGOA) News Archive 2006

10.25.06

AAFA joined more than a dozen businesses and non-governmental organizations and companies in sending an October 5 letter to key members of Congress and Bush administration officials urging them to extend the third-country fabric provisions under the African Growth and Opportunity Act (AGOA). There is still some hope that Congress will address this issue in its "lame-duck" session after the elections in November.

10.04.06

Just a day before the measure was expected to be overwhelmingly approved in the US House of Representatives, the House Republican leadership on September 25 pulled from the House calendar legislation (HR 6142), introduced by House Ways and Means Committee Chair Bill Thomas (R-CA), to extend and modify three preferences programs – the Africa Growth and Opportunity Act (AGOA), the Generalized System of Preferences (GSP) and Haiti ((through the Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE)). House leadership pulled the legislation after a small group of textile state lawmakers expressed opposition to the measure.
The legislation changes the AGOA provision by extending the third-country fabric benefit at current levels through 2008. It then replaces that program with a modified value added rule of origin and a new commercial availability program. The GSP program would be extended for two years with modifications to ensure that the preferences are enjoyed primarily by least developed countries. Haiti would receive additional preferences including a small tariff preference level for woven fabric and a provision that permits the use of third-country inputs provided those inputs come from other trade preference or free trade agreement partners.
Many believe Congress will return to the legislation in a "lame-duck" session shortly after the November elections.

07.26.06

The Committee for the Implementation of Textile Agreements (CITA), effective July 20, has determined that certain polyester and nylon yarns classified in subheadings 5402.31.6000, 5402.62.0000, and 5605.00.1000 of the Harmonized Tariff Schedule of the United States (HTSUS), cannot be supplied by the domestic industry in commercial quantities in a timely manner under ATPDEA. Therefore, apparel containing lace fabrics made in the Andean region using the subject third-country yarns can enter the United States duty-free under ATPDEA. Meanwhile, CITA requests comments on a July 5 petition from Shibani Inwear alleging that a certain combed and ring spun yarn, of a 92 percent cotton/ 8 percent cashmere blend, comprised of 2/32 Nm resulting in a 16 Nm yarn count, classified in subheading 5205.42.00.20 of the Harmonized Tariff Schedule of the United States (HTSUS), cannot be supplied by the domestic industry in commercial quantities in a timely manner under the African Growth & Opportunity Act (AGOA). If approved, men's knit sweaters made in sub-Saharan Africa from the subject third-country yarn can enter the United States duty-free under AGOA. Comments are due July 27. Finally, CITA, effective July 17, has determined that "handloomed, handmade, folklore articles, or ethnic printed fabrics" can now enter the United States duty-free under AGOA.

05.15.06

In an unprecedented move, Paraguay on May 9 blocked a World Trade Organization (WTO) waiver for the United States to continue its unilateral trade preference programs - the Caribbean Basin Trade Partnership Act (CBTPA), the African Growth and Opportunity Act (AGOA) and the Andean Trade Promotion & Drug Eradication Act (ATPDEA) because the programs do not include all developing countries. Waivers for unilateral preference programs, which need such a waiver because they violate WTO rules on reciprocity and equal treatment, are typically granted without debate. It is unclear what will happen next since no country has ever tried to block such a waiver. As a consensus organization, all 150 members of the WTO must agree to grant the waiver.

05.03.06

Effective April 26, US apparel imports from Chad are now eligible for duty-free entry under the African Growth and Opportunity Act (AGOA). Posted May 3, 2006.

The Senate Finance Committee issued a request for the submission of measures to be included in a Miscellaneous Tariff Bill (MTB). Senators must introduce the bills by May 26 in order to be considered for the MTB. The Committee will accept measures that would eliminate US tariffs on US imports of specific inputs used in the manufacture of US products or finished products that are not made in the United States. Each measure must be non-controversial (i.e. no domestic competition) and must amount to less than $500,000 worth of lost revenue to the US Treasury per year. Under Senate rules, the MTB must pass by unanimous consent. The US House of Representatives on March 15 already approved its version of the MTB by a vote of 412-2. The House bill, which contains hundreds of non-controversial provisions, includes measures to eliminate duties on US imports of 19 types of synthetic footwear as well as on US imports of certain camel hair and kashmir. The House bill would also extend the third-country fabric provision of the African Growth and Opportunity Act (AGOA) to 2015. This provision currently expires in 2008.

04.3.06

The US government's interagency Committee for the Implementation of Textile Agreements (CITA), effective March 27, has determined that certain 100 percent cotton woven flannel fabrics, made from 21 through 36 NM single ring-spun yarns, of 2 x 2 twill weave construction, weighing not more than 200 grams per square meter, classified in subheading 5208.43.0000 of the Harmonized Tariff Schedule of the United States (HTSUS), for use in shirts, trousers, nightwear, robes and dressing gowns, and woven underwear, cannot be supplied by the domestic industry in commercial quantities in a timely manner under the Andean Trade Promotion & Drug Er, adication Act (ATPDEA) and that certain 100 percent nylon 6, 6, fully drawn flat filament yarn, of yarn count 156 decitex, comprised of 51 trilobal filaments and 20 round filaments, classified in subheading 5402.41.9040 of HTSUS, for use in apparel articles classified under HTSUS subheadings 6108.22.9020 and 6109.90.1065, cannot be supplied by the domestic industry in commercial quantities in a timely manner under the African Growth and Opportunity Act (AGOA). Certain apparel from the Andean region and sub-Saharan Africa using third country subject yarns and fabrics can now enter the United States duty-free under ATPDEA and AGOA.