There is a distinct need
for proactive participation
of the clothing and
textile industry in
moves to extend the US
African Growth and
Opportunity Act (Agoa)
agreement, according to
Neren Dayanand, branch
manager of Turners
Shipping, Durban.
The current Agoa
arrangement, which
provides duty-free access
to garments manufactured
in Africa (amongst the
other goods approved by
the act), expires in 2015
and an investigation is
under way at present to
determine whether there
is good cause for
its extension. “It
is in the interests
of all exporters to
participate,” he
told FTW.
“Two
of our
land-locked
neighbours,
Lesotho
and Swaziland, are
beneficiaries of the Agoa
agreement – exporting
a combined US$360
million of textile
products to
the US, all
of which
comes
through
SA.
“This
is a
significant
contributor to the
freight forwarding
sector.”
Dayanand said that
trade agreements such as
Agoa were an important
stimulus for sub-Saharan
economies – with
direct benefits for local
business.
“When one considers
that Lesotho workers
in the garment and
textile industry earn the
equivalent of US$60m a
year, one gets a sense of
the importance of these
bilateral agreements. This
money circulates through
the economy, supporting
a range of other small
businesses.”
CAPTION
Neren Dayanand … ‘important
stimulus for sub-Saharan
economies.’
