The U.S. House of Representatives voted 397 to 32 to pass the Trade Preferences Extension Act of 2015, which includes a 10-year extension of the African Growth and Opportunity Act (AGOA). Last week's vote sets the stage for President Obama to sign the bill into law giving a boost to Africa's trade with the U.S.
The East Africa Trade and Investment Hub promotes intra-regional and export trade under AGOA. One of the Hub's key objectives is to increase non-oil exports to the U.S. under AGOA by 40%. Extending AGOA will help attract investment and create jobs in eligible sub-Saharan Africa countries.
According to one report, exports of textiles and apparel from African countries to the U.S. under AGOA are expected to reach $4 billion over the next 10 years. As per the report, in 2014, U.S. clothing imports from sub-Saharan Africa countries reached $986 million, up nearly six percent from 2013.