Levi Strauss Pushes 15-Year AGOA Extension to Safeguard Lesotho, Tanzania Denim Supply
LEVI•Levi Strauss urged Congress to extend the African Growth and Opportunity Act for at least 15 years, citing dependence on the third-country fabric provision to import denim from Lesotho and Tanzania duty-free. The company warned that short-term renewals create supply chain uncertainty and enable rivals like China to expand sourcing.
1. Levi Strauss Commercial Filing
Levi Strauss & Co. submitted a standalone comment to U.S. trade officials, pressing for a minimum 15-year AGOA extension. Michael Zetts, head of global policy and advocacy, stressed the pact’s duty-free benefits as essential for maintaining affordable, high-quality denim production and U.S. textile exports.
2. Critical Third-Country Fabric Provision
The company highlighted AGOA’s third-country fabric provision, which permits African manufacturers to use yarns and fabrics sourced globally and export finished apparel to the U.S. duty-free. Levi sources denim from Lesotho and Tanzania under this mechanism, noting Africa’s current fabric capacity remains below demand.
3. Impact of Short-Term Renewals
Levi warned that one- to five-year AGOA reauthorizations foster supply chain unpredictability, discourage long-term investment in logistics and infrastructure, and risk ceding market share to Chinese competitors expanding their African sourcing networks.
