BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Wednesday, 31 July, 2002, 16:46 GMT 17:46 UK
US trade bill offers Africa textile boost
Ethiopian women
Africa may not have the capacity to exploit higher limits
A new law has increased the amount of textiles African countries can export to America free of import duty.

The higher allowance is buried deep within the legislative details of President Bush's recent trade bill which expands on the original African Growth and Opportunity Act (AGOA).

AGOA was put into US law two years ago and was an attempt by President Clinton to help selected African countries.

The latest US trade bill doubles the amount of clothes made of African fabric or yarn that can be imported into the country tax free.

Taking advantage

But Manga Mugwe, Chairman of the Kenyan Association of Manufacturers, told the BBC's World Business Report Africa may not be able to exploit the increased allowances.

"At the moment we haven't got enough capacity in Africa: we still need technical support - that includes even funding," he said.

"We need extra support so that we can start growing our own cotton, we have a nice climate, we have nice soil, we can grow the cotton."

Working in partnership

There has been criticism that Asian investors have used Africa to benefit from the original trade agreement.

Mr Mugwe said it is up to African governments to ensure foreign investors don't take advantage of the allowances.

"Our own governments need to put in place some regulation so that those Asian investors are subjected to really get on in partnership with the local people," he said.

"So that way we will have a guarantee some of the profits will be ploughed back to this country."

 WATCH/LISTEN
 ON THIS STORY
Manga Mugwe, Kenyan Association of Manufacturers
"At the moment we haven't got enough capacity in Africa"
See also:

07 May 02 | Business
12 Apr 02 | Business
15 Mar 02 | Business
12 Feb 02 | Business
15 Jan 02 | Business
10 Jan 02 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes