This would encourage foreign investment in poverty stricken African countries. The efficient garment producers having difficulty in exporting their products from their home base would avail this opportunity. Some fabric producers outside Africa would also be able to increase their exports to be used for apparel manufacturing in Africa.
The Committee for the Implementation of Textile Agreements has announced the fiscal year 2023 (Oct. 1, 2022, through Sept.30, 2023) limits on duty and quota-free imports of apparel articles assembled from regional and third-country fabric under the African Growth and Opportunity Act. Apparel articles entered more than these quantities will be subject to otherwise applicable tariffs.
For apparel articles wholly assembled in one or more AGOA beneficiary countries from fabric wholly formed in one or more beneficiary countries from yarn originating in the U.S. or one or more beneficiary countries, the FY 2023 limit is 2,353,677,080 square meters equivalent (up 13.9 percent from FY 2022). Of this amount, 1,176,838,540 SME (also up 13.9 percent) is available for apparel articles imported under the AGOA third-country fabric provision, which provides preferential treatment for apparel articles assembled in one or more lesser-developed beneficiary countries regardless of the country of origin of the fabric used.
