|
SUMMARY
OF AMENDMENTS TO AGOA -- AGOA II
By
modifying certain provisions of the African Growth and Opportunity
Act (AGOA), the Trade Act of 2002 (signed by President Bush
on August 6, 2002) substantially expands preferential access
for imports from beneficiary Sub Saharan African countries.
These modifications - often collectively referred to in the
region as "AGOA II" - are effective immediately
upon enactment.
AGOA
II clarifies and narrowly expands the trade opportunities
for Sub-Saharan African countries under AGOA and encourages
more investment in the region. It provides additional Congressional
guidance to the Administration on how to administer the textile
provisions of the bill.
AGOA
enhancements include revisions requested by many Sub-Saharan
African countries. These enhancements maximize the benefits
of AGOA.
Specifically,
the AGOA II provisions amend AGOA:
- To
clarify that preferential treatment is provided to knit-to-shape
articles or "wholly assembled" apparel articles
assembled from the U.S. or from another Sub-Saharan African
beneficiary country. AGOA allows knit-to-shape articles
to qualify, but the knit-to-shape components have to be
from the U.S. or from another Sub-Saharan African beneficiary
country, or be knit-to-shape from yarn in an eligible Sub-Saharan
African country;
- To
make eligible for preferences so called "hybrid"
apparel articles (that is, articles containing both U.S.
and Sub-Saharan Africa beneficiary components and/or articles
containing both fabric and knit to shape components). In
essence, this provides preferential treatment for apparel
articles that are cut both in the United States and beneficiary
countries;
- To
make a technical correction to allow Sub Saharan African
producers to take advantage of the AGOA benefit for merino
wool sweaters;
- To
"double" the apparel cap for apparel made in Africa
from regional fabric made with regional yarn from 3 to 7
percent over eight years. In addition, the Act doubles the
"cap", or annual quantitative limit, on apparel
articles assembled in beneficiary countries from regional
fabric. However, it does not increase the cap for apparel
assembled in lesser developed beneficiary countries from
third country fabric (fabric formed outside the United States
or a beneficiary country); and
- To
allow Namibia and Botswana to benefit from the "lesser
developed beneficiary sub-Saharan African country"
provision. The Trade Act also grants AGOA lesser developed
beneficiary country status to Botswana and Namibia, allowing
producers there to use third country fabric in qualifying
apparel.
AGOA
II was written to improve the operation of AGOA I and improve
Sub-Saharan African country utilization of the AGOA program.
|
