2004 AAFA Testimony, Letters and Comments

5.6.04
On April 27, Jim Jacobsen, Vice Chair of AAFA member Kellwood Company testified that AAFA and its members strongly support quick passage and implementation of the U.S./Central America Free Trade Agreement (FTA). Speaking at a hearing of the U.S. International Trade Commission (ITC), Jacobsen emphasized that the FTA's apparel and footwear provisions would provide the flexibility that Central America and the Dominican Republic need to remain competitive after worldwide quotas are removed on January 1, 2005 and actually open new markets for U.S. textile manufacturers. Without the flexibility provided by the FTA, Jacobsen predicted that the region's apparel industry will decline significantly, taking with it the third largest export market for U.S. textile manufacturers. Likewise, the flexibility offered in the FTA for footwear will make the region competitive against Asia. Without quick passage and implementation of the FTA, the livelihoods of thousands of Central American and Dominican apparel and footwear workers and, in turn, thousands of U.S. textile workers, will be threatened.

4.26.04
AAFA and three other trade associations sent letters April 20 to U.S. Secretary of Commerce Donald Evans and U.S. Secretary of Homeland Security Tom Ridge demanding that the Committee for the Implementation of Textile Agreements (CITA) and the U.S. Department of Homeland Security's Bureau of Customs and Border Protection (Customs) publicly release their Vietnam "production verification visits" report. CITA and Customs conducted the August 2003 inspection visits in order to investigate allegations that Vietnam's quota allotments are inflated due to transshipment from China. Under the U.S./Vietnam Bilateral Textile Agreement, the United States can summarily lower Vietnam's quota allotments in categories where it finds illegal transshipment. CITA and Customs have refused to release the Vietnam report or any other report they have conducted around the world. The letter urges that all verification reports should be made public since the results of those reports directly impact the financial health of so many in the U.S. apparel and textile industries.

4.13.04
On April 8, AAFA submitted comments to the Office of the U.S. Trade Representative on the proposed U.S./Thailand Free Trade Agreement (FTA). AAFA supports the FTA as long as it is commercially-meaningful for U.S. apparel and footwear firms. A commercially-meaningful FTA must incorporate flexible and simple rules of origin and contain clear and simple Customs procedures. Furthermore, the FTA must contain strong and enforceable intellectual property rights (IPR) provision to protect U.S.-made and U.S.-branded products.

4.13.04
AAFA submitted testimony to the Senate Governmental Affairs Subcommittee on Financial Management, the Budget and International Security on its April 7 Federal Prison Industries (FPI) Reform Hearing in support of S. 346, legislation to reform the FPI procurement process. S.346 would essentially make permanent language in the Omnibus Appropriations bill for FY'04 that requires all government procurement officers to make an independent decision regarding whether an FPI product is the best value for a solicitation and, if not, competitive procurement procedures are put in place allowing private industry to compete. AAFA will continue to support this legislation. (AAFA Press Release).

4.13.04
Thanks to an AAFA-supported industry effort, the Senate Commerce, Science and Transportation Committee voted April 8 to strip the port security use fee provisions in legislation to improve port security - The Maritime Transportation Security Act of 2004 (S. 2279). In echoing calls from industry, many committee members instead suggested that current Customs tariffs and duties be used to pay for improved port security. AAFA had joined with over 80 other prominent business organizations in sending an April 7 letter to the Chair and Ranking Member of the Committee, Senators John McCain (R-AZ) and Fritz Hollings (D-SC), strongly opposing additional port security fees.

4.8.04
On April 7, AAFA and over 30 other major business, consumer and trade organizations sent a letter to President George W. Bushurging Bush to reject a March 16 AFL-CIO Section 301 petition on China's labor practices. While noting that there "is clearly great room for improvement in China's labor practices" and agreeing that China must comply with its international commitments on labor, the letter's signatories believe that neither the petition, nor the package of remedies it prescribes, will be effective in improving China's labor rights environment. Instead, imposing trade sanctions against China for its labor practices would likely start a trade war with our third largest trading partner. Not only would this trade war dramatically increase costs for every U.S. consumer, but it would threaten the livelihoods of thousands of U.S. workers and farmers who depend on exports to one of the fastest growing U.S. export markets. Furthermore, unilaterally imposing sanctions would violate our international obligations, those same obligations we have spent decades convincing other countries to live by and that have opened numerous markets to U.S. products and services.

4.8.04
On April 5, AAFA sent letters to U.S. Senators Mitch McConnell (R-KY), Diane Feinstein (D-CA) and Sam Brownback (R-KS) and U.S. Representatives Tom Lantos (D-CA) and Peter King (R-NY) urging them to introduce legislation now to renew the total ban on U.S. imports from Burma. The current ban, in place since August 2003, will expire at the end of this summer if Congress does not pass legislation by the end of July to renew the sanctions. Since this law took effect, the ruling military junta in Burma has shown no willingness to address the many problems that made these sanctions necessary. Now is the time to reinforce our sanctions tools against this regime, and, more importantly, to actively seek similar steps from other countries. Renewal of the ban will "send a clear and unmistakable message that the United States is not interested in doing business with regimes such as the one that brutally enslaves the people of Burma."

4.8.04
On April 5, AAFA submitted comments to the Office of the U.S. Trade Representative on the proposed U.S./Panama Free Trade Agreement (FTA). AAFA supports the FTA as long as it is commercially-meaningful for U.S. apparel and footwear firms. A commercially meaningful FTA must incorporate flexible and simple rules of origin and contain clear and simple Customs procedures.

4.8.04
On March 26, AAFA submitted comments in support of a petition filed by S. Schwab Company alleging that smooth, round cut 10-wale per inch (4-wale per centimeter) 100% cotton corduroy for use in manufacturing apparel articles, classified in subheading 5801.22.90 of the Harmonized Tariff Schedule of the United States (HTSUS), cannot be supplied by the domestic industry in commercial quantities in a timely manner (i.e. in short supply) under the Caribbean Basin Trade Partnership Act (CBTPA), the African Growth and Opportunity Act (AGOA) and the Andean Trade Promotion and Drug Eradication Act (ATPDEA). AAFA and S. Schwab spent several weeks in an effort to locate the subject corduroy fabrics in the United States. AAFA and S. Schwab "were unable to locate a mill that is either currently producing or marketing 100 percent cotton 10-wale per inch corduroy, or willing to produce it." Only one mill submitted any samples, but none of those samples were 100 percent cotton or 10-wale per inch.

3.30.04
On March 17, AAFA Senior Vice President Steve Lamar testified at a U.S. government hearingon the proposed U.S./Andean Free Trade Agreement (FTA). Lamar noted that there already exists a preferential relationship that permits duty-free imports from the Andean region (Bolivia, Colombia, Ecuador and Peru). He noted that a properly negotiated and implemented FTA, incorporating reasonable and commercially-meaningful rules of origin, would expand on that partnership, and thus promote two-way trade by making it more flexible, reciprocal, broader and permanent.

3.9.04
On March 9, AAFA submitted comments to the U.S. government urging the United States, Canada and Mexico to reform some of the apparel and footwear provisions in the North American Free Trade Agreement (NAFTA). The comments, submitted as part of a rule-making exercise being conducted by the three countries, requests that NAFTA incorporate the footwear agreement recently reached by the U.S. footwear industry, where all footwear made in the NAFTA countries, except 17 specific footwear items, can enter NAFTA countries duty-free under a simple substantial transformation rule of origin that allows the use of third country uppers. AAFA also supports expansion of NAFTA's apparel short supply list to include the items considered in short supply under the U.S./Central America Free Trade Agreement. Finally, AAFA urges the three NAFTA countries to reconsider Article 303 of NAFTA, which eliminated the use of duty-drawback under the agreement. AAFA will work with its industry counterparts and the governments in each country in an attempt to implement these changes to the NAFTA.

3.3.04
On February 17, AAFA submitted comments to the Customs and Border Protection urging a simplification of the documentation requirements under the Caribbean Basin Trade Partnership Act (CBTPA). The comments noted that existing regulations require excessive paperwork and documentation that serve as a disincentive to using the existing program.

2.26.04
On February 9, AAFA submitted comments in support of two January 20 industry petitions to designate: 1) certain ultra-fine Lycra crochet outer-fusible material with a fold line that is knitted into the fabric and a fine Lycra crochet inner-fusible material with an adhesive coating that is applied after going through a finishing process to remove all shrinkage from the product, classified under item 5903.90.2500 of the Harmonized Tariff Schedule of the United States (HTSUS), for use in apparel articles (waistbands); and 2) certain fusible composition material, of the specifications described in the petition, classified in HTSUS subheading 5903.90.2500, for use in waistbands of apparel articles, in short supply (unavailable in commercial quantities from U.S. manufacturers in a timely manner) in the United States under the Caribbean Basin Trade Partnership Act (CBTPA), the African Growth and Opportunity Act (AGOA) and the Andean Trade Promotion & Drug Eradication Act (ATPDEA). In its letter, AAFA supports the petitions because several short supply petitions on patented fusible interlining fabrics were already approved under CBTPA, because the linings addressed in the two new short supply requests are substantially similar and because of the facts surrounding their patented nature are equally in short supply in the United States for all three preference programs.

2.26.04
AAFA Senior Vice President Steve Lamar testified on February 10, 2004 before the U.S. International Trade Commission on the beneficial impact that the proposed U.S./Andean and U.S./Panamanian Free Trade Agreements (FTA) could have on the U.S. economy. In his comments, Lamar noted that there already exists a preferential relationship that permits duty-free imports from these countries. He noted that a properly negotiated and implemented FTA would expand on that partnership, and thus promote two-way trade, by making it more flexible, reciprocal, broader and permanent.

2.26.04
On February 13, AAFA President and Chief Executive Officer Kevin M. Burke submitted comments to the Office of the U.S. Trade Representative in connection with the U.S. government's annual review of foreign countries practices in enforcing and protecting intellectual property rights, such as brands and trademarks. Based on information from AAFA members, Burke commented on continuing problems in China and Mauritius. Previous years' comments have focused on other countries in Asia and Latin America.

2.4.04
AAFA and numerous AAFA members joined over 100 organizations in sending a January 23 letter to every member of Congress strongly urging Congress to consider and approve the U.S./Central America Free Trade Agreement as soon as possible.

1.28.04
Following a January 9 letter sent by AAFA and 3 other associations to the Committee for the Implementation of Textile Agreements (CITA) urging a delay, the Committee for the Implementation of Textile Agreements (CITA) announced January 23 that visas will not be required for U.S. imports of Chinese bras (Category 349/649), dressing gowns (Category 350/650) and knit fabric (Category 222). On December 24, 2003, CITA placed one-year quotas (12/24/03 - 12/23/04) on each of these products under the China textile safeguard and announced that it would require visas on all shipments under these categories that would have been exported from China on or after January 23, 2004.

1.28.04
The AAFA and AAFA member supported Business Coalition for U.S.-Central America Trade sent a January 22 letter to President George W. Bush strongly urging Bush to push for quick Congressional passage of the U.S./Central America Free Trade Agreement (CAFTA). The coalition's letter notes that CAFTA will give U.S. manufacturers the same access to the Central American market as the Central Americans already receive in the U.S. market under the Congressionally-approved Caribbean Basin Trade Partnership Act (CBTPA). CAFTA also provides significant benefits for the U.S. apparel and footwear industries.

1.28.04
AAFA joined with a number of other associations and companies in a January 9 letter to key House Ways and Means Committee members to urge action on the Miscellaneous Trade and Technical Corrections Act of 2003 during the coming year. The legislation includes a number of disparate non-controversial trade provisions, including several that benefit textile, apparel and footwear companies.

1.14.08
AAFA and 3 other associations sent a January 9 letter to the Committee for the Implementation of Textile Agreements (CITA) urging a delay in the effective date of the visa requirement for the new quotas recently reimposed on U.S. imports of knit fabric, dressing gowns/robes, and brassieres from China. The letter argues that this action will not affect the ability of the U.S. government to monitor or limit these imports and will merely provide a reasonable transition period for U.S. companies who are engaged in legitimate trade of these products. The visa requirement is currently scheduled to take effect for such products exported from China on or after January 23, 2004.

1.14.04
AAFA joined with a number of other associations and companies in a January 9 letter to key House Ways and Means Committee members to urge action on the Miscellaneous Trade and Technical Corrections Act of 2003 during the coming year. The legislation includes a number of disparate non controversial trade provisions, including several that benefit textile, apparel, and footwear companies.

1.6.04
A new report released January 6 by a coalition of trade associations representing U.S. apparel manufacturers, importers and retailers, including AAFA, finds that the end of apparel and textile quotas at the end of 2004 will benefit hard-working U.S. families, U.S. consumers and U.S. workers while providing new economic opportunities for poor and developing countries around the world (Actual Report, Press Release). According to the report, clothing prices for working families will likely fall as much as 11 percent due to the elimination of quotas. Kevin Burke, President & CEO of AAFA, also praised the study''s proposals to change the focus of U.S. trade policies to focus on "adjustment measures at home and abroad" so that U.S. branded products can expand their U.S. and foreign market shares.