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 industry.
“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 landmark 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
another country such as China, South Korea or Vietnam.
President Barack Obama’s administration had hoped to win
renewal of the provision ahead of an annual forum with AGOA
beneficiary countries in June.
U.S. Trade Representative Ron Kirk said at that event the
delay was already hurting African producers because clothing
importers place their orders months in advance. He promised
Obama would sign a bill as soon as it reached his desk.
Supporters hope Congress will pass the bill before the
month-long August recess.
(Reporting By Doug Palmer; Editing by Paul Simao)
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