AGOA – the African Growth and Opportunity Act – is a U.S. Government trade preference program that allows nearly 6,400 qualifying items to be exported to the U.S. without import duties. AGOA provides African-eligible countries with liberal access to the largest consumer market in the world, the U.S. Through AGOA, the U.S. Government promotes African trade competitiveness, job growth, and poverty reduction.
AGOA is the only free trade agreement that has 100% inclusion of the third country fabric provision. (The Haiti – U.S. trade agreement is the next closest to providing 100% inclusion, but it excludes men’s cotton shirts).
Hub apparel advisor JC Mazingue and Senior Sales Manager for Sourcing at Magic, Bob Berg, gave the seminar audience some advice.
Know your market, so that you can identify opportunities.
For instance, Omni-channel retailing – the U.S. is into it. But, it involves a lot of logistics to ensure a consistent consumer experience across platforms.
"Managing all those logistics is difficult. We need to build trust with our clients in America to choose 'us' [Africa]," said Mr. Mazingue.
Is the American market worth it? Check out Americans by the numbers, to gain a perspective on what it means to be the world’s largest consumer market.
Takeaway – The U.S. market offers a range of opportunities for exporters. AGOA provides a competitive advantage.