US Imports Of Denim From AGOA | 2012-2016

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AGOA provides duty-free and quota-free treatment for eligible apparel articles made in qualifying sub-Saharan African countries until September 30, 2025. Qualifying articles include: apparel made of U.S. yarns and fabrics; apparel made of sub-Saharan African (regional) yarns and fabrics until September 30, 2025, subject to a cap; apparel made in a designated lesser-developed country of third-country yarns and fabrics until September 30, 2025, subject to a cap; apparel made of yarns and fabrics not produced in commercial quantities in the United States; textile or textile articles originating entirely in one or more lesser-developed beneficiary sub-Saharan African countries; certain cashmere and merino wool sweaters; and eligible hand loomed, handmade, or folklore articles, and ethnic printed fabrics.

It can be said, with little exaggeration, that Lesotho owes the very existence of its fairly substantial clothing and textile industry to AGOA and exports to the U.S. Although there was an established infant clothing industry in Lesotho prior to the introduction of AGOA, growth was nothing short of spectacular following the introduction of AGOA, brought about mainly as a result of investment by Taiwanese companies to take advantage of the duty free quota-free access to the U.S. market. Employment in the industry grew from 9847 in 1999 to 53087 in 2004 with a globally-integrated industry producing garments for some of the best known brands in the world, such as Gap and Levi Strauss. Like garment manufacturers located in many countries around the world, Lesotho’s clothing industry experienced a major decline following the demise of the MFA in 2005. The situation was worsened by the strong appreciation of the Loti (which is linked to the Rand) against the US$.

In this report, we did a detailed analysis of US Imports of Denim from the major countries fall under AGOA region.

Table of Content

S.NO.

Particulars

1 Table showing the list of top exporting countries to USA with quantity and average price for the period of 2012 -2016
2 8 Tables showing the  top four exporting countries to USA with quantity for the period of 2012 -2016
3 8 Tables showing the  top four exporting countries to USA with average price for the period of 2012 -2016
4 8 Graphs showing the  top four exporting countries to USA with quantity for the period of 2012 -2016
5 8 Graphs showing the  top four exporting countries to USA with average price for the period of 2012 -2016

 

At this time, it does not appear that Africa will grow into a world-class supplier of denim by the end of the decade, although the region may rise as a significant producer of jeans and other denim apparel. As the continent grows under the African Growth and Opportunity Act (AGOA), and continues to receive investment from China, India, and elsewhere, cut and sew operations will take center stage, but imported fabrics will largely support this production. In part, this will be driven by the fact that the AGOA agreement makes it much more economical to import cloth than to buy it locally.

Summary of Exports from AGOA to USA 2012-2016 | Qty In Million pcs | Avg Price(USD/Pc)       [private_special]

Country

2012

2013

2014

2015

2015 (Jan-Sept)

2016 (Jan-Sept)

Qty Exported

Avg Price

Qty Exported

Avg Price

Qty Exported

Avg Price

Qty Exported

Avg Price

Qty Exported

Avg Price

Qty Exported

Avg Price

Lesotho

14.78

6.79

14.78

6.65

13.76

6.38

14.03

6.43

10.67

6.39

7.79

6.70

Kenya

3.59

6.21

3.48

6.64

3.96

7.29

3.64

7.87

2.77

7.91

2.44

8.26

Madagascar

0.43

1.87

1.19

2.02

1.07

2.96

2.14

4.01

1.50

3.55

1.91

6.37

Mauritius

0.85

11.72

0.88

14.44

2.65

13.78

2.09

13.63

1.46

13.61

0.90

14.25

Tanzania

0.00

0.00

0.01

3.67

0.16

7.88

0.30

8.46

0.22

8.51

0.44

7.94

There is an improvement in terms of export of denim to USA by AGOA in last four years. In 2012 , the total export was 19.79 Million Pcs while in 2015 it reached to 22.27 Million Pcs . So far as the average prices are concerned , several countries under this region managed to deliver a competitive price . Madagascar is the lowest priced exporter with average prices in 2016 coming to only about USD 3.55 per piece which is extremely low ! . Mauritius is the highest priced with average prices going beyond USD 13 per piece as it serves mainly the high end market . Lesotho is definitely the market leader when it comes to volumes and has over 60% of the export share.

LESOTHO

There is an improvement in terms of export of denim to USA by AGOA in last four years. In 2012 , the total export was 19.79 Million Pcs while in 2015 it reached to 22.27 Million Pcs .  Lesotho is the leading country with 14.03 million pcs in 2015 which is actually less than the exports of 2013 and 2012. During the period of Jan-Sept 2015, the export quantity for Lesotho was 10.67 million pcs however for the same period in 2016 registered an adverse of growth of 27% and the quantity exported shrink to 7.79 million pcs. However the changes in the average prices are reasonably well comparing with the change in the quantity. In 2012 , the average price was USD 6.79/Pc which has been merely decreased by 36 cents and reached to USD 6.43/Pc in 2015. Comparing the period of Jan-Sept of 2015 &2016 , it was observed in spite of downfall in the quantity exported there were no as such increase in average price. The average price increased from USD 6.39/Pc to USD 6.70/Pc.

Qty Exported To USA(In Millions)

Year

2012

2013

2014

2015

Lesotho

14.784

14.784

13.764

14.028

US Imports Of Denim From AGOA | Denimsandjeans

Avg Price (USD/Pcs)

Year

2012

2013

2014

2015

Lesotho

6.79

6.65

6.38

6.43

US Imports Of Denim From AGOA | Denimsandjeans

Qty Exported To USA(In Millions)

Year

2015 (Jan-Sept)

2016 (Jan-Sept)

Lesotho

10.668

7.788

US Imports Of Denim From AGOA | Denimsandjeans

Avg Price (USD/Pcs)

Year

2015 (Jan-Sept)

2016 (Jan-Sept)

Lesotho

6.39

6.70

US Imports Of Denim From AGOA | Denimsandjeans

 

KENYA

Kenya is the second leading country with 3.636 million pcs in 2015 which is actually less than the exports of 2014. During the period of Jan-Sept 2015, the export quantity for Kenya was 2.772 million pcs however for the same period in 2016 registered an adverse of growth of 12% and the quantity exported shrink to 2.436 million pcs. However the changes in the average prices are reasonably well comparing with the change in the quantity. In 2012 , the average price was USD 6.21/Pc which has been increased by USD 1.66/Pc  and reached to USD 7.87/Pc in 2015. Comparing the period of Jan-Sept of 2015 &2016 , it was observed that downfall in the quantity exported led to increase in average price. The average price increased from USD 7.91/Pc to USD 8.26/Pc.

Qty Exported To USA(In Millions)

Year

2012

2013

2014

2015

Kenya

3.588

3.48

3.96

3.636

US Imports Of Denim From AGOA | Denimsandjeans

Avg Price (USD/Pcs)

Year

2012

2013

2014

2015

Kenya

6.21

6.64

7.29

7.87

US Imports Of Denim From AGOA | Denimsandjeans

Qty Exported To USA(In Millions)

 

Year

2015 (Jan-Sept)

2016 (Jan-Sept)

Kenya

2.772

2.436

US Imports Of Denim From AGOA | Denimsandjeans

Avg Price (USD/Pcs)

Year

2015 (Jan-Sept)

2016 (Jan-Sept)

Kenya

7.91

8.26

US Imports Of Denim From AGOA | Denimsandjeans

 

MADAGASCAR

Madagascar is one of the growing country with 2.136 million pcs in 2015 which is actually reasonably better than than the exports of 2013 and 2012. During the period of Jan-Sept 2015, the export quantity for Madagascar  was 1.5 million pcs however for the same period in 2016 registered a positive growth of 27% and the quantity exported reached to 1.908 million pcs. In 2012 , the average price was only USD 1.87/Pc which has been increased to USD 4.01/Pc in 2015.

Qty Exported To USA(In Millions)

Year

2012

2013

2014

2015

Madagascar

0.432

1.188

1.068

2.136

US Imports Of Denim From AGOA | Denimsandjeans

Avg Price (USD/Pcs)

Year

2012

2013

2014

2015

Madagascar

1.87

2.02

2.96

4.01

US Imports Of Denim From AGOA | Denimsandjeans

Qty Exported To USA(In Millions)

Year

2015 (Jan-Sept)

2016 (Jan-Sept)

Madagascar

1.5

1.908

US Imports Of Denim From AGOA | Denimsandjeans

Avg Price (USD/Pcs)

Year

2015 (Jan-Sept)

2016 (Jan-Sept)

Madagascar

3.55

6.37

US Imports Of Denim From AGOA | Denimsandjeans

 

MAURITIUS

Mauritius is not a big player when it comes to exports to US. It mainly works in EU market and there also it seems to be not doing well because of rising costs and increased competition. However, for US market under AGOA , Mauritius has increased its exports and reached a number of 2 million plus for 2015. However, there is again de-growth when it comes to 2016 – so the exports are not steady.

Qty Exported To USA(In Millions)

Year

2012

2013

2014

2015

Mauritius

0.852

0.876

2.652

2.088

US Imports Of Denim From AGOA | Denimsandjeans

Avg Price (USD/Pcs)

Year

2012

2013

2014

2015

Mauritius

11.72

14.44

13.78

13.63

US Imports Of Denim From AGOA | Denimsandjeans

Qty Exported To USA(In Millions)

Year

2015 (Jan-Sept)

2016 (Jan-Sept)

Mauritius

1.464

0.9

US Imports Of Denim From AGOA | Denimsandjeans

Avg Price (USD/Pcs)

Year

2015 (Jan-Sept)

2016 (Jan-Sept)

Mauritius

13.61

14.25

US Imports Of Denim From AGOA | Denimsandjeans

 

On the whole we see that AGOA could not really serve the purpose what it sought to achieve specially when it comes to denim. The exports have been more or less stagnant with not much signs of improvement. Ethiopia is a country where there is a lot of hope , however, the country has till now not been able to get its act together and export . It is still under development stage and still does not have the kind of infrastructure ready to enable exports in a sizeable way. Maybe we should see figures worth while looking at when , hopefully when we report again !

[/private_special]


Save the dates of our upcoming International Denim Exhibitions In Bangladesh and Vietnam .

Denim Mashup | Street Style

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