(Adds Kirk statement)
WASHINGTON, July 18 (Reuters) – The U.S. Senate Finance
Committee voted on Wednesday to renew an expiring trade benefit
that has helped create hundreds of thousands of jobs in the
African clothing industry over the past decade.
“A timely extension of this provision will help stem the
tide of job losses in Africa and it will ensure that U.S.
retailers will have the certainty they need to help their
businesses succeed and grow,” Committee Chairman Max Baucus, a
Montana Democrat, said.
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 Sept. 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 is critical for workers and businesses in the U.S. and
Africa that we extend this key provision before it is due to
expire in September,” U.S. Trade Representative Ron Kirk said in
a statement after the vote.
“Just last week, I visited a textile factory in Ghana that
will likely have to close its doors and lay off nearly 500
employees if Third-Country Fabric expires – and that is just one
example,” Kirk said.
President Barack Obama’s administration had hoped to win
renewal of the provision ahead of an annual forum with AGOA
beneficiary countries in June.
The bill, which is coupled with legislation to extend
sanctions on Myanmar for three years, has broad bipartisan
support and is expected to pass easily if it gets to the floor
in the Senate and the House of Representatives for votes.
(Reporting By Doug Palmer; Editing by Paul Simao and Vicki
Allen)
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