The US House Of Representatives Passed The Trade Agreement On Textile Terms.
The representative of the house of Representatives passed a legislation designed to support the clothing industry in sub Saharan Africa and Dominica, allowing them to make garments from outside the region according to preferential trade agreements.
Textile manufacturers in the United States support this trade legislation because they believe that using limited external materials will not cause any major problems.
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With the passage of this bill by the two parties in the United States, the Dominica textile and apparel 2 to 1 program is in the experimental stage. According to this procedure, when garment manufacturers purchase a certain amount of fabric (which is accords with preferential treatment, for example, 2 meters), their exports to the US can be increased by one square meter, no matter where the fabric is produced.
The bill also emphasizes the so-called "adequate supply" clause of the so-called African Growth Opportunity Act (AGOA). This clause encourages or requires African clothing manufacturers to use locally produced fabrics in the original law before purchasing other parts of the fabric, such as Asia. Although the original intention is good, such requirements do not achieve the desired effect, in fact, it has damaged some African countries' clothing industry.
The legislation requires the US government to launch a survey to find new ways to encourage investment in the textile manufacturing industry in Africa.
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