Since the Africa Growth and Opportunities Act (Agoa) of the US government was legislated in May 2000, 35 African countries, including Namibia, benefited from export opportunities textiles and locally manufactured garments duty-free and quota-free to US markets until 2008. The American Trade Bill, enacted last year and containing Agoa II, the second law to favour African imports, provided for the "least developed status" for Namibia and Botswana, thus creating better export conditions, thanks to former trade and industry minister, Hidipo Hamutenya. At the end of last week, the "Agoa III Action Committee" was launched in Washington. This and other business opportunities will be discussed at the US-Africa Business Summit in Washington. DC from 24 to 27 June 2003, which will be attended by a Namibian government delegation.

The Agoa III Action Committee will be co-chaired by Ms Rosa Whitaker, former assistant US trade representative for Africa, who now heads the consulting company Whitaker Group, and former US presidential candidate Jack Kemp and Mr Carl Ware, a top executive with the Coca Cola company.

"We are looking to extend Agoa for which President George Bush has already announced his support, beyond 2008. We are looking into strengthening the incentives in the agricultural sector," Ms Whitaker said at the occasion, according to a report circulated by the US embassy in Namibia.

The committee further aims to enhance textile and apparel benefits for least-developed countries by allowing some use of fabrics of non-African and non-US origin in duty-free apparel beyond the current cut-off date, which is 2004. A ‘short supply’ standard for yarn and fabric not produced in the US but which could be allowed duty-free access to the US if produced in Africa is to be created. Thirdly, African textile and apparel production is to be exempted from economic impact criteria for support to be obtained form the US Export-Import Bank and the Overseas Private Investment Corporation (OPIC).

In Namibia, the Malaysian Ramatex factory and textile plant investment was attracted to Namibia because of Agoa. Raw cotton imported from the US and West Africa is spun, woven and dyed to be sown into garments for export to the US. For this purpose, a direct shipping line between Walvis Bay and the US was started.

In the first year of Agoa, Africa’s mainly textile exports to the US came to 8,4 billion US dollars. Agoa created thousands of jobs in most of the 36 African countries eligible for Agoa. Lesotho could attract investments of120 million US dollars. Further proposals for Agoa III are to reduce import tariffs on all manufactured goods from Africa to the US to 8% in 2010 and cut them to zero by 2015. In another development, the five member countries of the Southern African Customs Union (Sacu), Namibia, Botswana, Lesotho, Swaziland and South Africa are currently negotiating a free trade agreement with the US.