Thursday, August 2, 2012

Reuters: Politics: Congress approves lifeline for African clothing workers

Reuters: Politics
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Congress approves lifeline for African clothing workers
Aug 2nd 2012, 16:05

WASHINGTON | Thu Aug 2, 2012 11:16am EDT

WASHINGTON (Reuters) - The U.S. House of Representatives voted on Thursday to renew a trade measure supporting hundreds of thousands of jobs in the African clothing sector, just two months before it expires.

The Senate is expected shortly to approve the legislation, sending it to President Barack Obama to sign into law.

The African Growth and Opportunity Act (AGOA), first passed by Congress in 2000, allows eligible countries in sub-Saharan Africa to ship thousands of goods to the United States without paying import duties.

A provision that expires September 30 waives duties on clothing from most AGOA countries, even if the yarn or fabric is made in a "third country" such as China, South Korea or Vietnam.

It provides sewing jobs for hundreds of thousands of African workers, about 70 to 80 percent of whom are women. The legislation extends the provision through 2015.

"The apparel industry has been a major driver of employment growth in Africa under AGOA. In Lesotho alone, jobs in the textile and apparel industry have more than doubled - growing from 19,000 to 45,000 - because of AGOA," House Ways and Means Chairman Dave Camp, a Republican, said.

The congressional action comes as U.S. Secretary of State Hillary Clinton in is Africa on a seven-nation tour, partly to promote the United States as an alternative to China's growing economic and political influence in the region.

Development organizations have watched for months with frustration as the Obama administration was unable to get Congress to act on the African trade provision.

(Reporting By Doug Palmer; Editing by Vicki Allen)

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