Textile Manufacturers In Kenya Worry About Delays In AGOA Expansion

Kenya textile manufacturers extend the deadline for the African Growth and timing Act (AGOA) in September 2012. delay Questions show concern.

Textile manufacturers in Kenya are worried that the delay in the expansion of AGOA will seriously affect their business, because the uncertainty of expansion has caused thousands of workers to lose their jobs.

However, AGOA's third country fabric requirement ends in September 30, 2012. After this date, Kenya Spin and clothing Companies need raw material sources, such as cotton and yarns from real estate, to get tax-free benefits to the United States.

Similarly, the government of Kenya has provided incentives for the cotton industry. It includes the establishment of the Cotton Development Council to provide cotton farmers with high cotton prices.

However, these incentives have not been effective. Textile and garment manufacturers want to extend the third country rule of AGOA to 2015, improve the availability of local raw materials and meet domestic demand.

In addition, the Ministry of trade of Kenya has set up a AGOA National Committee to guide the textile and clothing sectors of the country. The Ministry of trade also contacted the United States, hoping to extend AGOA's third country fabric requirements.

But the US government has not yet responded to the call for Kenya's textile and clothing industry. This raises concerns about whether Kenya's textile manufacturers can continue to supply goods.

Textile manufacturers said the order will be delivered in March and delivered in December. If the fabric requirements of third countries can not be extended, the delivery date may be affected.

The purpose of AGOA is to provide duty-free access to the American market for African countries, including Kenya.

Kenya's total exports of textiles and clothing reached US $292 million in 2011, making Kenya the largest exporter of textiles and clothing to Africa under AGOA.