Taiwan garment makers with produc don facilities in Africa are calling on upstream textile manufacturers to set up operations there. Following the signing into law, in May 2000, of the African Growth and Opportunity Act (AGOA) over 30 Taiwan textile manufacturers have set up production facilities in Africa to take advantage of benefits of the Act, which was designed to promote trade between the US and 37 African nations. To date, the largest number of Taiwan textile makers to have set up opera- tions in Africa have been garment makers. But the tax benefits provided by the AGOA to garments manufactured from cloth produced outside African nations covered by the AGOA will end in Sept 2007. After that time, garments produced in Africa but using cloth imported from Taiwan will no longer receive preferential tax treatment when exported to the US.
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