[Congressional Record Volume 157, Number 102 (Monday, July 11, 2011)]
[Extensions of Remarks]
[Page E1287]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         A BILL TO AMEND THE AFRICAN GROWTH AND OPPORTUNITY ACT

                                 ______
                                 

                           HON. JIM McDERMOTT

                             of washington

                    in the house of representatives

                         Monday, July 11, 2011

  Mr. McDERMOTT. Mr. Speaker, today I am introducing legislation that 
would update one of our most important preference programs--the African 
Growth and Opportunity Act (AGOA). This bill addresses two important 
issues.
  First, it extends the ``third-country fabric'' provision of AGOA for 
three years, which is due to expire in September 2012. This will align 
the third-country fabric provision with the rest of the AGOA program 
which expires in 2015. Of course we are working on an improvement and 
extension of the AGOA program beyond 2015 right now.
  The ``third-country fabric'' provision is one of AGOA's most 
important elements. It allows apparel producers in lesser-developed 
sub-Saharan African countries to use third-country fabric in making 
apparel that gets duty-free treatment under AGOA (subject to a quantity 
limit).
  In 2010, textiles and apparel were one of the leading AGOA import 
categories--$730 million in trade last year alone. Much of these 
imports require fabric that is not commercially available in sub-
Saharan Africa. They depend, in other words, on use of the third-
country fabric benefits.
  Textiles and apparel are key exports for a number of AGOA countries 
including Lesotho, Kenya, Mauritius, and Swaziland who last year 
exported $692 million of goods to us, mostly in apparel.
  As U.S. Trade Representative Kirk recognized at last month's ``AGOA 
Forum'' held in Lusaka, Zambia, ``AGOA textiles and apparel have 
created new opportunities for investment and trade that benefit 
businesses and consumers in both the United States and Africa. This 
sector remains an important foundation for Africa's growing industrial 
base.''
  It is critical that the AGOA third-country fabric provision be 
extended now. It's critical for businesses here in the U.S. and for 
jobs.
  Buyers and retailers work on substantial lead times and need stable 
terms and conditions into the future. If there is uncertainty about 
whether AGOA apparel products will be there next year, they will begin 
to turn away from Africa. We cannot allow that to happen.
  The second part of my bill takes another step in welcoming the new 
Republic of South Sudan to the community of nations.
  On July 9--the South Sudanese took their future into their own hands 
and created the Republic of South Sudan.
  The democratic process that resulted in the birth of this new country 
is an astonishing achievement--honoring the results of a referendum in 
which more than 4 million people, or 97 percent of registered voters, 
participated with 98 percent voting for secession.
  The fact that this comes at the end of the longest and bloodiest 
civil wars in Africa makes it all the more incredible.
  President Obama and Secretary Clinton have already signaled U.S. 
support for the new Republic of South Sudan.
  We need to make sure we do all we can to help South Sudan be 
successful. We should act expeditiously, which is why I am introducing 
this bill on the first legislative day after the creation of this new 
nation.
  I strongly urge all of my colleagues to support it.

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