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    Motor Garth Textile Enterprises Will Be Forced To Close In The Near Future

    2010/2/11 16:59:00 36

    Motor Garth Textile Enterprises Will Be Forced To Close In The Near Future

    Recently, Mr. John Haag Leif, vice chairman of the Madagascar duty free Enterprises Association, told local media that the 5 duty-free areas in Madagascar were due to the termination of Madagascar's "Africa Growth and Opportunity Act" (AGOA) by the US government in late December 2009.

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    Enterprises will be forced to close down in the near future, and 35000 local employees are expected to be unemployed.

    In addition, by the impact of the political crisis broke out in early 2009, duty-free enterprises' orders from the US and Europe decreased by 18% and 5% in 2009 compared with the same period in 2008.


    Mr. John said that with the temporary loss of the US market, enterprises in the duty free zone are increasing their efforts to expand the European market. These enterprises hope to reduce the losses caused by the US's suspension of AGOA treatment by expanding the share of the European market.


    In December 23, 2009, President Obama declared that he would continue to enjoy the provisions of AGOA in violation of the rule of law and democracy in Madagascar.

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    To the United States

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    clothing

    And other products can enjoy "zero tariff and quota free" preferential terms.

    According to the relevant regulations, if Madagascar's democracy and legal system improved in 2010 and met the US standard, the country would have the right to resume AGOA treatment before the end of 2010.


    Madagascar tax-free zone enterprises are mainly engaged in

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    clothing

    Product processing

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    Business.

    At present, about 100 thousand local employees work in the duty free zone, of which about 35000 are engaged in the US market.

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    Product processing.

    According to Mr. John, it is all processed in the duty free zone.

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    In the business, the European market accounted for 55%, the United States and Canada accounted for 35%, and the rest of the world accounted for 10%.

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