African manufacturers seek extension of US trade programme 

Manufacturers in some parts of Africa are lobbying the US Congress to assistance a last-ditch hold of 1 to 2 years to a duty-free commercialized programme, the African Growth and Opportunities Act (AGOA), which is owed to expire astatine the extremity of September, Reuters has gathered.

US President Donald Trump’s assertive tariff policies person formed uncertainty connected the prospects for renewal of the AGOA commercialized initiative, which was passed successful 2000 nether erstwhile President Bill Clinton to supply duty-free entree to the US marketplace for thousands of products.

Delegations from Kenya and 4 different AGOA beneficiaries precocious visited Washington to propulsion for the impermanent extension, said Pankaj Bedi, president of apparel institution United Aryan, which supplies US retailers specified arsenic Target and Walmart.

The Act is designed to enactment economical improvement of African nations and supports hundreds of thousands of jobs successful the textiles, automotive and mining sectors portion US lawmakers person viewed it arsenic a instrumentality to antagonistic Chinese power connected the continent.

Despite bipartisan support, an effort past twelvemonth to renew AGOA for 16 years did not marque it to a ballot successful Congress. Since then, President Trump’s commercialized policies person suggested determination whitethorn not beryllium the governmental volition successful Washington to propulsion done an extension.

Bedi, who is besides a Kenya Association of Manufacturers committee member, said the delegation of backstage investors and authorities officials had much than 30 engagements during the visit, including with members of Congress and their aides.

He said determination was cosmopolitan enactment from the Congressional Republicans and Democrats they met, including staffers for House Speaker Mike Johnson, to renew AGOA.

But helium said it remained unclear whether Congress could find a portion of authorities successful the adjacent 2 weeks to which a renewal could beryllium attached.

Without an extension, manufacturers would look steep rises successful tariffs connected their products, including a leap from 10% to 43% for synthetic textiles.

“It’s similar a location of cards that volition collapse,” Bedi said, predicting wide layoffs crossed the textiles assemblage if AGOA is not renewed.

The White House and the offices of the United States Trade Representative and Speaker Johnson did not respond instantly to requests for comment. The White House has not said publically whether it supports an extension.

Bedi said that if AGOA ends, the US would go adjacent much heavy babelike connected Asian manufacturers.

“If this is taken away, by default, the concern is going to spell backmost to China,” helium said.

The station African manufacturers question hold of US commercialized programme  appeared archetypal connected Vanguard News.