Growth in U.S. Exports to Sub-Saharan Africa
As cotton apparel imports from sub-Saharan Africa surged in 2001, so did U.S. cotton fabric and yarn exports to the region. While the region’s share of total U.S. cotton fabric and yarn exports is less than 0.5%, both categories showed impressive growth in 2001. Cotton yarn exports grew 50.3%, to the highest level since 1992, while cotton fabric exports grew 46.4%, to $5.5 million. This growth is impressive, considering that 13 of the 16 nations qualify for LDC status (and thus enjoy duty-free shipment to the United States even of apparel made from non-U.S. fabric). Many analysts believe that U.S. cotton yarn and fabric exports to the region may continue to see strong growth, even before additional non-LDC nations qualify for the textile and apparel export benefits provided under the AGOA.
 Textile Trade in the Future In the bill signed into law in October 2000, several issues were left unclear and unresolved. In particular, the legislation states that garments “wholly formed” in the CBI region containing U.S. components can qualify for quota- and duty-free access to the U.S. market. However, the legislation is not clear on whether the value-added processes of dyeing and finishing apparel are included under this definition. New legislation to clarify Congress’s intent and promulgate the final rules is expected in 2002, and several members of Congress have come out firmly opposed to the inclusion of dyeing and finishing processes in the definition of “wholly formed.” After clarifying language is announced, CBI-region manufacturers and U.S. importers may be better able to determine product eligibility for duty-free access. Increasing cotton trade with the Caribbean Basin and sub-Saharan Africa could provide a much-needed boost for U.S. cotton textile mills, as well as a boon to these regions’ burgeoning economies
|
