clothing

The Uncertain Future of Africa's Transformative Free-Trade Deal

The African Growth and Opportunity Act has generated many jobs in the clothing manufacturing sector, especially for women. Photo: Jenny Bussey Vaughan/Mercy Corps
The African Growth and Opportunity Act has generated many jobs in the clothing manufacturing sector, especially for women. Photo: Jenny Bussey Vaughan/Mercy Corps

Most Americans may have never heard of the African Growth and Opportunity Act, but their closets probably contain at least one article of clothing imported as part of it.

The act — AGOA, by its acronym — was passed by Congress in 2000. It’s a free-trade deal between the U.S. and a number of Sub-Saharan African nations that eliminates quotas and duties for certain goods. It allows African products to compete with those from other regions on a more level playing field on the U.S. market. 87 percent of these imports consist of petroleum and minerals, according to a report by the Council on Foreign Relations. That’s not all, though, as Florizelle Lizer, the assistant U.S. trade representative for Africa explained to the U.S. Department of State’s Bureau of International Information Programs:

The main focus of our efforts and our capacity-building assistance related to AGOA has always been to promote new nontraditional and value-added exports from Africa like apparel, footwear, processed agricultural products and manufactured goods.

This is where you’ll find AGOA’s selling point for the average Joe or Joanna in one of its member states. It’s created tens of thousands of manufacturing jobs, and many of these new employees are women. Some of the largest gains are in clothing manufacturing. For a poor, landlocked country like Lesotho, clothing exports tripled and 50,000 new jobs appeared following its entrance into AGOA, according to a report by Lawrence Edwards and Robert Lawrence. It’s also helping to empower women by providing them access to a regular income, comments Zambia News Features.

There’s a catch, though: AGOA says the materials used to make products exported to the U.S. must be manufactured in the exporting country or, at the very least, in another AGOA state. But being able to manufacture fabrics on an industrial scale is a tall order for developing nations that don’t already have that kind of infrastructure. Luckily for them, another piece was added to AGOA a few years after it debuted. It’s called the Third Country Fabric Rule, and it allows African countries to import their fabric from other parts of the world, manufacture the finished product at home, and then export it to the U.S. under AGOA.

The Third Country Rule doesn’t quite sync up with AGOA, and must be renewed more frequently. AGOA itself isn’t up for revision until 2015, while the Third Country Rule is set to expire in 2012. In May, AllAfrica reported that the U.S. had said that "its market would no longer be accepting garments whose raw materials could have been sourced from outside the exporting country." Since then, a U.S. congressman submitted a bill to extend the Rule until 2015, though an article from Forbes argues that recent U.S. actions concerning AGOA constitute a kind of "benign neglect."

Not everyone is in favor of AGOA in its current state, though. Some call it a fig leaf for the oil industry or a cap on the growth of African manufacturing. U.S. Secretary of State, Hillary Clinton, is a supporter, but in a recent speech at the AGOA forum in Zambia she pointed out some of its shortcomings, according to Procurement News. She said African governments need to work on providing greater support to manufacturers — citing the example of an American business that chose to import from Vietnam instead of an AGOA because Vietnamese government subsidies meant that the factory there could churn out products more quickly. Clinton also criticized the fact that countries "export only a handful of the 6,500 products," eligible under AGOA, while "the most common export is still a barrel of oil." Others see the Third Country Rule as actually stunting the growth of local textile industries. It might be cheaper to import from Asia in the short run, but local businesses could suffer the long-term.

But in the minds of many, allowing the rule to lapse — or even threatening to let it do so — makes investors nervous and hurts countries’ long-term prospects. Here’s hoping congressional inaction concerning your clothing’s origin won’t cost an African woman the shirt off her back.

Margo Conner is a senior at Lewis & Clark College in Portland, Oregon, majoring in international affairs. Read her other contributions to Global Envision.


Stories We're Watching

Biofuels goals 'may lead to food shortages'

Science and Development Network - Mon, 05/21/2012 - 02:00
A study finds that some developing countries may face significant food security impacts by 2020 if their ambitious biofuels targets are met.

Land grabbers: Africa's hidden revolution

The Guardian's Poverty Matters - Sat, 05/19/2012 - 16:05
Vast swaths of Africa are being bought up by oligarchs, sheikhs and agribusiness corporations. But, as this extract from The Land Grabbers explains, centuries of history are being destroyed.

Sustainable development is the only way forward

The Guardian's Poverty Matters - Sun, 05/20/2012 - 23:00
Development co-operation needs to shift focus from poverty eradication to a broader, more inclusive framework.

The Real Story on Charcoal for African Cookstoves

Triple Pundit - Sun, 05/20/2012 - 13:11
You may have seen pictures of women in Africa cooking their daily meals on a small cookstove. These cooking implements look remarkably similar to the portable charcoal grills an American family might bring to the beach for an afternoon of grilling hot dogs and hamburgers.

Could Glass-Steagall Have Stopped JPMorgan Loss?

NPR - Sat, 05/19/2012 - 15:13
The banking giant's $2 billion loss has many lawmakers and economists wondering what happened to the 2010 financial overhaul, which was supposed to prevent risky hedging. Many are also looking back further — to a Depression-era law, repealed in 1999, that separated commercial and investment bank activities.

Recent comments

Countries

An initiative of Mercy Corps
“You must be the change
you wish to see in the world”
Mahatma Gandhi
Learn more about Mercy Corps >

Efficiency

Over the last five years, more than 89% of Mercy Corps' resources have been allocated directly to programs

Excellence

America's premier charity evaluator gives Mercy Corps four stars in organizational efficiency. Click here to learn more.

High Value

Every dollar you donate to Mercy Corps helps us secure $11.16 in donated food and other critical supplies.

Mercy Corps — Dept. W — 45 SW Ankeny — Portland, OR 97204
All original content Copyright © 2009 Mercy Corps. Quoted and linked content is property of the creator(s). Mercy Corps will not sell, rent or trade your personal information.