Washington, D.C. – Congressman Charles B. Rangel praised the passage by Congress of legislation to extend a critical provision in the African Growth and Opportunity (AGOA) Act, spearheaded by Rangel and enacted by President Bill Clinton in 2000. The provision, which was set to expire on September 30, 2012, waives any duties on clothing imports from most AGOA countries, even if the yarn is from a “third-world country.” First passed by the House on a voice vote and then unanimously in the Senate, also by a voice vote, the bill is now on its way to President Barack Obama’s desk.

“This provision has helped generate hundreds of thousands of jobs in sub-Saharan Africa,” Rangel said. “Since its extension became uncertain, there has been a 35% downturn in orders since the beginning of the year and wide job losses that the AGOA countries cannot afford. In addition, if the provision had been allowed to expire, American retailers would have faced a narrowing supply chain and the American people would have seen fewer apparel options.”

The legislation extends the third-world country fabric provision through 2015 and adds South Sudan to the list of nations eligible for AGOA benefits. The bill is expected to turn the tide of job losses in the apparel industries of AGOA countries.

Rangel played an instrumental role in the original passage of the AGOA Act in 2000. Because of congressional inaction, it seemed that the gains for sub-Saharan Africa secured then might be lost only twelve years later. Luckily, Congress came to an agreement before the expiration of the provision expiring on September 30.

“As well as providing critical support for African workers, this legislation is important for American foreign policy,” Rangel said. “Right now Secretary Clinton is in Africa on a tour partly to promote the United States as a responsible political and economic partner. That is important both for our economic interests and the leverage it gives us in supporting more respect for the human rights of Africans.”

AGOA is an important element in the partnership between the United States and Africa.  The third-country fabric provision – which African apparel producers depend on to source critical fabric inputs that are often not available in sub-Saharan Africa – is a keystone of AGOA.  It has helped to generate hundreds of thousands of jobs in sub-Saharan Africa, including its least developed countries, and has helped American retailers diversify their supply chains and provide better apparel options for U.S. consumers.

Secretary of State Hillary Rodham Clinton is currently on a seven country, eleven-day tour of Africa, including a stop in the new nation—newly AGOA eligible—of South Sudan. Her last stop will be in Ghana. Every country she will visit is AGOA eligible.