Administration Wants AGOA TPL Extended, South Sudan Added
During a May 13, 2011 speech at the Center for Strategic and International Studies (CSIS), Congressional and Administration officials discussed the Administration’s Africa trade and investment policy.
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Wants 3rd Country Fabric Provision Extended
The Administration wants Congress to extend the African Growth and Opportunity Act (AGOA) third country fabric provision in 2011, i.e., the duty-free tariff preference level in HTS 9819.11.121 for apparel made in lesser-developed beneficiary countries from third country yarns and fabrics. This provision is currently scheduled to expire on September 30, 2012.
(See ITT’s Online Archives or 03/10/11 news, 11031026, for BP summary of the USTR’s congressional testimony on Administration plans to examine its Africa trade policy.)
Wants to Make Country of South Sudan a SSA Beneficiary
The Administration also wants to include the future country of South Sudan on the list of AGOA beneficiary sub-Saharan Africa (SSA) countries in 2011.
(The Office of Foreign Assets Control has recently announced that a new state is expected to be formed on July 9, 2011 due to the secession of south Sudan. According to OFAC, when the new state is formed, it will not be included in the territorial boundaries of Sudan nor be governed by the State of Sudan. According to various press sources, the official name of South Sudan will be the “Republic of South Sudan.”
(See ITT’s Online Archives or 10/05/10 news, 10100508, for BP summary of the USTR’s request for comments for its most recent review (2010) of AGOA country eligibility.
See ITT’s Online Archives or 04/13/11 news, 11041310, for BP summary of OFAC notice on South Sudan.)
Also Considering Broader Issue of AGOA Renewal
The Administration is also considering the extension of the broader AGOA, which expires on September 30, 2015. The Administration will be looking at a variety of issues, including whether AGOA should be extended in its current form, whether the AGOA country eligibility criteria reflect current U.S. values and priorities, whether the Administration should take a stronger line on labor, environment, or investor rights, and how do the AGOA criteria align with other U.S. preference programs.
1Under HTS 9819.11.12, apparel articles wholly assembled, or knit-to-shape and wholly assembled, or both, in one or more lesser developed AGOA beneficiary countries, subject to the provisions of HTS Chapter 98, Subchapter XIX, U.S. Note 2, regardless of the country of origin of the fabric or the yarn used to make such articles.