US fashion companies urged the early renewal of a trade program that allows thousands of African products to enter the world's biggest economy duty free, saying that a longer-term arrangement would boost investment in the region.
The African Growth and OmortunitY. Act, first enacted in 2000, is set to expire in 2025 and US officials have said the qualifying criteria for beneficiaries could be revised or the program replaced.
More than 45% of respondents in a new surveY. warned that they've reduced sourcing from AGOA members given the uncertainty of renewal.
The temporary nature of AGOA discouraged about 60% of respondents "from making longterm investments and sourcing commitments in the region." That's according to the survey of 30 chief executives of large US apparel companies conducted by the US Fashion Industry Association and Sheng Lu, an associate professor of fashion and apparel studies at the University of Delaware.