Mauritian textile and apparel manufacturers hope the AGOA trade preference program will be renewed. AGOA (African Growth and Opportunity Act) is set to lapse in a year. It provides duty-free entry into the US for certain goods. The act came into force in 2000. It aims to assist the economies of sub-Saharan Africa and improve economic relations between the US and the region.
The program has expanded market access for textile and apparel products into the US for eligible countries. Mauritius, in particular, is one of the leading beneficiaries of the AGOA provisions. Mauritius is the fourth-largest exporter under AGOA, exporting primarily apparel products.
The trade deal helped Mauritius grow its exports to the US. It is the country's second largest export market behind the UK, accounting for around 18 per cent of textile and apparel exports in 2013. For many Mauritian manufacturers, the US is not only an important customer but in some cases accounts for their total business. The benefits Mauritius gets from its EU trade deals are more challenging, with duty set at around 10 percent. The benefits Mauritius has through the AGOA deal make the US a more appealing market to trade with.
trade.gov/agoa/