U.S. set to extend strategic provision for AGOA

THE United States of America (USA) has concluded plans to extend the Third-Country Fabric (TCF) under the Africa Growth Opportunity Act (AGOA), which is set to expire in September 2012. AGOA is the cornerstone of America's trade and investment policy with sub-Saharan Africa.Its performance and effectiveness are closely tied to its TCF provision, which is set to expire in September 2012. The TCF provision is crucial to the continued survival of Africa's textile and apparel industry ' it has generated hundreds of thousands of jobs in sub-Saharan Africa, including in least developed countries, and has helped American retailers reduce their costs, diversify their supply chains, and provide greater low-cost apparel options for U.S. consumers.Stakeholders in the sub-Saharan African countries believed that swift passage of legislation extending AGOA's TCF provision is necessary to ensure its continued success, stability, development and economic growth of sub-Saharan African countries. Congress has extended the TCF provision twice with bipartisan support.Speaking at the 11th U.S. Sub-Saharan Africa Trade and Economic Forum in Washington at the weekend, Secretary of States Hillary Clinton said the provision has widespread support in the United States, adding that the U.S was working closely with its partners in Congress to accelerate the renewal process.She expressed confidence that the provision will be renewed successfully.Clinton added that for Africa to realise its full potential, it would need to focus on developing its physical infrastructure, such as roads, ports and modern electrical grids.'AGOA has helped to increase trade and investment and opened new doors of opportunity. It's led to new jobs, the rise of new sectors and new business opportunities for people in every country represented here, as well as the United States,' she said.According to her, trade between Africa and the rest of the world has also grown exponentially, tripling during the past 10 years as private foreign investments have at last surpassed official aid.She stated that the global investments in Africa were set to continue rising because the continent offers the highest rate of return on foreign direct investments compared to any developing region in the world.'In fact, it is the only developing region where the growth rate is expected to rise this year,' Clinton said.Africa is one of the fastest growing regions on the globe, home to six of the world's 10 fastest growing economies.'The middle class is growing, consumer spending is increasing, and urban centers are becoming vital economic hubs. Africa is the 21st century continent that is the land of opportunity.'But in spite of the progress made, there remains a great deal more potential for trade and investment across Africa,' she said.She highlighted the importance of infrastructure development, which is the theme of this year's forum.
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