Ethiopian textile industry at risk if U.S. suspends trade deal over Tigray war

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In a crowded Addis Ababa factory, Finoteselam Nigussie's needle plunges in-and-out of the gauzy white cloth she deftly guides through a sewing machine.

Mamo warned an AGOA suspension would hurt U.S. companies trying to diversify production from Asia by relocating or expanding to Ethiopia.

Though Ethiopia would suffer from a AGOA suspension; retailers will find alternatives despite the havoc from COVID-19, said Neil Saunders, a Conlumino analyst. An H&M spokesperson said the company was following developments regarding AGOA carefully, but it was too early to comment. In December, H&M said its long-term manufacturing and sourcing strategy involves Ethiopia and it did not plan to change. But its Ethiopia production is comparatively small.

A senior PVH official previously said the 10-year renewal of AGOA in 2015"was a critical factor in PVH's decision to invest", according to a 2017 case study of PVH in Ethiopia published by the World Bank and co-authored by Mamo.

 

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