Opportunities and Challenges of African Growth Opportunity Act (AGOA)

Ethiopia is one of the Sub-Sahara African (SSA) countries which is experienced for Africa Growth and Opportunity Act (AGOA) which allows SSA countries to export qualified products to the U.S market free of tariff and quota. Since 2001, Ethiopia has been utilizing this opportunity by exporting different products, including the textile and apparel products, to US market. And yet, the textile and apparel sub-sector has not been fully able to utilize the AGOA like other some SSA countries. In other words, the sub-sector has still existing in lowest level of competitiveness. This study has analyzed the opportunities & challenges of the sub-sector that affect the competitiveness of Ethiopian foreign trade development and pinpoint suggestions for intervention that will enhance the sub-sectors competitiveness. Six respondents among those textile exporters under AGOA, five respondents from Ethiopian Textile and Garment Association, Ethiopian Textile Industry Development Institute, Ministry of Trade (AGOA Representative), AGOA Wega Plus and Ethiopian Inland and Custom Authority (Preferential Trade Desk) were chosen and interviewed and secondary source of data were also applied.