12.21.07
AAFA submitted comments December 21 to the Office of the US Trade Representative urging the US government to comply with World Trade Organization (WTO) rulings banning the controversial practice of “zeroing.” The practice artificially inflates margins in US anti-dumping cases.

12.14.07
AAFA joined with over 30 other major agricultural and business organizations and companies in sending a December 14 letter to Congressional leader opposing an effort to re-implement the so-called "Byrd Amendment," which Congress had previously voted to eliminate because it violated US international trade obligations.

12.12.07
AAFA joined 40 other major agricultural, manufacturing and services organizations and companies in sending a letter December 12 to the Bush administration expressing their opposition to the first draft of the Rules text released at the end of November as part of the ongoing Doha Round of World Trade Organization (WTO) negotiations.

12.10.07
AAFA submitted comments December 10 strongly encouraging the US Department of Commerce (Commerce) to allow individual Chinese firms "Market-Oriented Enterprise (MOE)" status in US anti-dumping and anti-subsidy cases against US imports from China.

12.04.07
The entire textile and apparel supply chain -- from cotton growers, yarn spinners and fabric mills all the way through to apparel brands and retailers -- sent a letter to Congressional leaders December 4 renewing their call for immediate renewal of the Andean Trade Preferences Act (ATPA) before ATPA expires February 29, 2008. The letter also called for quick implementation of the US/Peru TPA and quick Congressional approval of the US/Colombia TPA.

12.03.07
AAFA sent a letter December 3 to every member of the US Senate informing Senators that AAFA has "key voted" the upcoming Senate vote on the US/Peru Trade Promotion Act (TPA) and urging every Senator to vote "YES" on the agreement. The Senate is expected to vote on the US/Peru TPA the week of September 10.

11.14.07
AAFA member CEOs joined the CEOs of over 100 US companies, both big and small, in sending a November 14 letter to Congress urging Congress to consider the important relationship the United States has with China and take a rational approach to legislation involving China.

11.08.07
The US House of Representatives on November 8 approved the AAFA-supported US/Peru Trade Promotion Agreement (TPA) by a vote of 285 - 132.

11.08.07
AAFA's submitted comments November 8 for the US government's next annual National Trade Estimate Report on Foreign Trade Barriers.

11.08.07
House and Senate Conferees to the 2008 National Defense Authorization Act reached agreement to retain Section 824, which mandates that any DOD purchase from Federal Prison Industries (FPI) must now be bid like any other contract, if FPI has more than 5% of the DOD market. AAFA has been steadfastly expressing its support for this provision for the past several weeks. Earlier this year, AAFA sent a letter to each Senator highlighting the importance of this reform. AAFA followed up that letter with another alert to each member of the Senate asking them to oppose any and all efforts to strip Section 824 from the underlying legislation. Most recently, AAFA joined several other groups in yet another note, this time, to House Armed Services Chairman Ike Skelton (D-MO) and Ranking Member Duncan Hunter (R-CA), requesting that Section 824 be kept in the underlying legislation as they entered conference committee with their Senate counterparts.

10.31.07
AAFA submitted comments on October 31 on the US Department of Labor's Proposed Procedural Guidelines for the Development and Maintenance of the List of Goods From Countries Produced by Child Labor or Forced Labor

10.29.07
AAFA sent its own letter to Senator Pryor October 29 detailing these objections and signed onto a broader industry letter to Pryor on September 28 opposing product safety legislation (S. 2045) introduced by the Senate Consumer Affairs Subcommittee Chair Senator Mark Pryor (D-AR).

10.18.07
Congressman Jim McDermott (D-WA) introduced new trade preference legislation on October 18. The legislation (H.R. 3905), welcomed by AAFA (AAFA press release, AAFA support letter, would grant ALL products from all least-developed countries (LDCs) duty-free access to the US market under flexible rules as well as establish a trade capacity program to help least-developed countries take advantage of this duty-free access.

10.16.07
AAFA joined over 700 other association in companies representing the entire US business and agricultural community in sending an October 16 letter urging Congress to approve the US/Peru Free Trade Agreement (FTA) as soon as possible.

10.11.07
AAFA joined with 15 other companies and organizations representing a broad swath of the U.S. business community in sending an October 11 letter to Congressional leaders urging Congress to comply with dispute settlement cases in the World Trade Organization (WTO).

10.10.07
AAFA President Kevin M. Burke sent a letter October 10 to the sponsors of the Design Piracy Prohibition Act (HR 2033, S 1957) expressing opposition to this legislation as it is currently drafted. As the prevalence of fashion “knock-offs” continue to hit the streets, the industry as a whole is looking for innovative ways to thwart this practice. This bill seeks to do so by giving fashion designers a three-year copyright for their original designs. While AAFA wholeheartedly supports the goal of protecting the intellectual property rights of fashion designers, the letter explains that the current language of the bill is unacceptable because it would inadvertently do more harm to designers, as well as the industry as a whole, than good.

10.09.07
In anticipation of the bill’s consideration on the floor earlier this week and rumors that Senator Diane Feinstein (D-CA) was planning on introducing an amendment to strip Section 824 from the pending legislation, AAFA issued a letter October 3 to each Senator urging their support for Section 824 of the FY08 National Defense Authorization bill, which includes a very important provision, Section 824, reforming the way Federal Prison Industries (FPI) bids on defense contracts.

10.05.07
AAFA sent a letter with thirty other trade associations on October 5 to Los Angeles Mayor Antonio Villaraigosa and Long Beach Mayor Bob Foster asking the ports of L.A. and Long Beach to delay implementation of a controversial plan that seeks to reduce emissions and improve infrastructure in and around these very busy ports.

10.01.07
AAFA submitted a letter October 1 to the Bush administration’s Working Group on Import Product Safety regarding its position on quality, safety and standards for imports of consumer products.

09.26.07
AAFA joined with over 150 companies and associations representing virtually the entire US manufacturing, services and agricultural communities in sending a September 26 letter to every member of Congress urging Congress to take a rational and balanced approach when considering legislation that could affect US-China relations.

09.20.07
AAFA President and CEO Kevin M. Burke submitted comments on September 20 to the U.S. government's inter-agency Committee for the Implementation of Textile Agreements (CITA) in connection with a CAFTA safeguard investigation on Honduras.

09.11.07
In written testimony submitted to the Senate Finance Committee for the September 11 hearing on the US/Peru Free Trade Agreement (FTA), AAFA urged Congress to quickly approve and implement the agreement. While no firm date has yet been set, Congressional leaders have stated that they expect to consider the FTA before the October Columbus Day holiday.

09.4.07
On September 4, AAFA joined a number of organizations and sent a letter to Senate Majority Leader Harry Reid (D-NV) to express opposition to S. 1843, the Fair Pay Restoration Act, and H.R. 2831, the Ledbetter Fair Pay Act. Earlier this year, the House voted along party lines in favor of H.R. 2831, which seeks to overturn a recent Supreme Court Decision, Ledbetter v. Goodyear Tire and Rubber Co., which ruled, consistent with current law, that the period of time under which an individual may file an employment charge must be limited. The Senate bill was introduced by Senator Edward Kennedy (D-MA) on July 20, 2007. While the Senate companion bill is awaiting action, it is not expected to move as quickly, if at all.  Either way, the Administration has already issued a veto threat on both bills, essentially killing the legislation for the remainder of the 110th Congress.

8.27.07
During consideration of the FY08 Commerce, Justice, Science Appropriations bill, Congressman Jeff Flake (R-AZ) introduced an amendment that would have stripped out funding for the National Textile Center and Textile/Clothing Technology Corporation ([TC]2). This funding is critical in the preservation of more than 600,000 U.S. jobs in the fiber, fabric and apparel industry for research and technology development designed to enhance the domestic industry’s overall competitiveness.In response, AAFA sent letters to each member of Congress asking for their support in defeating the amendment. Our friends in Congress used AAFA statistics during floor debate to argue against the Flake Amendment and for the industry. After conclusion of debate, the measure was overwhelmingly defeated by voice vote.

08.21.07
AAFA submitted comments August 21 to the US Department of Homeland Security's Bureau of Customs and Border Protection (Customs) in response to their interim regulations implementing the Haiti HOPE preference program. The comments outline the apparel industry's concerns with the interim regulations and encourages Customs to quickly issue final HOPE regulations.

08.10.07
The ability for CAFTA countries to use a limited amount of woven fabrics from Mexico under CAFTA's cumulation provisions could soon become reality. The Central American countries are hoping to complete ratification of the amendments to their bilateral agreements with Mexico in the coming weeks. If this occurs, cumulation will enter into force before the end of year. This progress has occurred, in large part, to continued pressure from an ad-hoc coalition of US associations, led by AAFA, representing the US apparel and retail industries.

08.03.07
AAFA submitted comments August 3 on the US International Trade Commission's (ITC) ongoing investigation on whether to expand, reduce or eliminate the current requirement to utilize a certain amount of African denim under the "abundant supply" mechanism in the African Growth and Opportunity Act (AGOA). In its comments, AAFA notes that the current denim requirements actually work against the original purpose of the abundant supply mechanism by discouraging sourcing in the AGOA region and, therefore, reducing incentives for new investment in the AGOA textile and apparel supply chain.

08.02.07
AAFA submitted testimony to the powerful House Ways and Means Committee for their August 2 hearing covering a wide range of topics related to China in preparation for marking up their own version of Anti-China legislation this fall.

08.01.07
AAFA sent a letter August 1 to the US Defense Department (DOD), along with the National Textile Association, Leather Industries Association, American Manufacturing Trade Action Coalition and National Council of Textile Organizations opposing a DoD decision to allow purchases of commercial-off-the-shelf (COTS) items despite the domestic source restrictions found in the Berry Amendment.

07.30.07
AAFA sent a joint letter to the House leadership July 30 with a coalition of more than forty groups, organizations and other trade associations voicing unified opposition to the bill, The Ledbetter Fair Pay Act of 2007 (HR 2831).

07.25.07
As a member of the Federal Prison Industries (FPI) Competition in Contracting Coalition, AAFA joined other industries in sending a letter July 25 to each United States Senator, asking for their support for Section 824 in the Senate FY08 National Defense Authorization bill. Section 824 would modify Section 2410n of title 10, United States Code, by mandating that any DOD purchase from FPI now must be bid like any other contract, if FPI has more than 5% of the DOD market.

07.24.07
Set to expire July 26, Congress moved quickly last week to once again renew the AAFA-supported import ban on Burma contained within the Burmese Freedom and Democracy Act of 2003 (HJ Res 44). The bill, now before President George W. Bush, maintains for another year the import restrictions against the ruling military junta in Burma due to their horrific human rights violations. The US Senate approved the legislation by a vote of 93-1 on July 24, only a day after the US House of Representatives passed the bill by voice vote.

07.16.07
AAFA President and CEO Kevin M. Burke sent a letter to House and Senate negotiators July 16 opposing a 100 percent scanning mandate as part of larger legislation implementing the 9/11 Commission recommendations.

07.16.07
AAFA President and CEO Kevin M. Burke wrote a letter July 16 to Senators debating an annual Defense authorization bill to express strong support for a provision in that bill that would create more opportunities for private contractors to compete for government business against Federal Prison Industries (FPI).

07.12.07
AAFA joined with a number of business organizations in sending a letter July 12 to the House leadership stating that all of the FTA countries – Peru, Colombia and Panama -- have fully met their obligations under the May 10 agreement and pledging to work with Congress to quickly approve all of the free trade agreements.

07.10.07
AAFA submitted comments July 10 in response to the US International Trade Commission's (ITC) ongoing study to determine how much, if any, production of textile travel goods remains in the United States and whether the fabrics needed to produce textile travel goods are still manufactured in the United States in commercial quantities. The results of the study will be published in the fall of 2007. AAFA asserted in its comments to the ITC that there is very little commercially viable US domestic production of textile travel goods. Further, the manufacturing that exists today is little affected by imports.

07.05.07
AAFA submitted comments July 5to the US Department of Commerce in response to a May 25 Federal Register notice regarding the efficacy of granting market economy treatment to select respondents in anti-dumping cases targeting imports from China. AAFA urged the US Department of Commerce to allow such treatment and establish an objective and transparent test to determine whether individual respondents deserve market economy treatment. Currently, China, for purposes of anti-dumping cases, is considered a non-market economy, which means that the US Department of Commerce uses values from a surrogate market economy country (and not actual prices, wages and costs in China) to determine whether companies from China are dumping product on the US market. This practice has typically led to significantly higher dumping margins (punitive duties) against Chinese factories in anti-dumping cases relative to factories subject to anti-dumping cases in market economy countries.

06.29.07
AAFA joined with over 350 members of the US-Korea FTA Business Coalition in sending letters to Congress June 29 urging Congress to quickly approve the newly concluded US-Korea Free Trade Agreement (KORUS FTA). If approved by Congress and implemented, the agreement would allow virtually all footwear and ALL travel goods (both textile and non-textile) traded between the United States and Korea to enter each country duty-free immediately under very flexible rules. The agreement would also allow apparel from each country to enter the other duty-free either immediately or eventually under generally more restrictive rules. Although the KORUS FTA was signed by the U.S. and Korea on June 30, considerable obstacles remain before the agreement can even be considered in Congress. 

06.20.07
Together with more than 400 other companies and associations, AAFA signed on to a letter urging renewal of Trade Promotion Authority (TPA), which is set to expire June 30. Trade Promotion Authority provides authorization for the President to negotiate trade agreements that can be approved by Congress in a simple up-or-down vote provided he regularly consults with Congress on the underlying negotiations. Without TPA, the President is unable to engage in many negotiations, providing an opportunity for other countries to engage in trade deals that isolate the United States. Although the President strongly supports renewal of TPA, the Democratic leadership has expressed wariness at renewing this authority because of concerns over the trade agenda and its impact on U.S. workers.

06.15.07
AAFA sent letters June 15 to US Trade Representative Susan Schwab, Secretary of Commerce Carlos Gutierrez and Secretary of Homeland Security Michael Chertoff urging them to appoint a "CAFTA Implementation Czar" to implement the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). Such a czar is absolutely necessary in light of the lackluster apparel import numbers and declining footwear import numbers from the region and the huge decline in US fabric exports to the region. The letter highlights the specific issues that need to be resolved in order to ensure that the United States and the region fully benefit from the agreement.

06.13.07
AAFA joined over 500 other companies and organizations representing the entire US business community in sending a June 13 letter to Congress urging them to quickly pass the Free Trade Agreements (FTA) with Colombia, Panama and Peru. AAFA, with the unprecedented support of the entire US textile and apparel supply chain, continues to lobby Congress for approval of both the Colombia and Peru TPAs as well as an immediate extension of the Andean Trade Promotion & Drug Eradication Act (ATPDEA), now set to expire in less than two weeks (June 30).

06.08.07
AAFA joined with over 60 other companies and organizations representing the US business community in sending a June 8 letter to House Way & Means Committee Chair Charlie Rangel (D-NY) urging the Committee to modify current legislation (H.R. 1229) that would allow countervailing duty cases against non-market economies (NMEs), like China, over alleged subsidies. While the letter's signatories recognized the importance of strong provisions to combat unfair subsidies, the signatories expressed concern that the legislation, as currently written, would not only violate US obligations under the World Trade Organization (WTO), but would violate the US Constitution. The signatories urged the Committee to modify three provisions in the current legislation to: 1) avoid imposing punitive duties twice for the same alleged "dumping" or subsidy; 2) avoid using non-Chinese benchmarks to determine the levels of any alleged subsidy; and 3) avoid violating the Constitution by modifying the bill's provision requiring Congressional approval of changes to non-market economy (NME) status.

05.31.07
On May 31, AAFA Executive Vice President Steve Lamar submitted comments to the Consumer Product Safety Commission (CPSC) in response to a Notice of Proposed Rulemaking updating the flammability standards for clothing textiles. The comments submitted addressed a range of technical and definition items that had been identified by AAFA members. The CPSC has been working to update the standard for about five years, and is hoping to complete work later this year. AAFA had previously commented on this issue in 2002, and has scheduled a meeting with CPSC staff to discuss the issue further in mid-July.

05.22.07
The American Federation of Labor & Congress of Industrial Organizations (AFL-CIO) on May 22 expressed support for the extension of the Andean Trade Promotion and Drug Eradication Act (ATPDEA). In a letter to the Congressional leadership, the AFL-CIO noted that renewed preferential access to the US market is vital to the Andean region's economic and political stability. ATPDEA provides apparel and footwear made in the region duty-free access to US markets under certain rules. The AFL-CIO's backing of legislation to extend ATPDEA comes at a critical time as the preferences for Columbia, Peru, Bolivia and Ecuador are currently set to expire in a little over a month (June 30, 2007). AAFA, working with unprecedented support from the entire US apparel and textile supply chain, continues to lobby Congress not only for quick passage of an extension for ATPDEA, but also for quick Congressional approval of the pending free trade agreements (FTAs) with Colombia and Peru. The FTAs will make the current benefits permanent, reciprocal and more comprehensive (the FTAs cover textiles as well as apparel and footwear).

05.18.07
In the waning days before the end of Missouri’s Senate session, the AAFA sent a letter to Majority Floor Leader, State Senator Charlie Shields, urging his swift enactment of HB 482, legislation intended to curb the practice of counterfeiting goods and protect intellectual property rights in all American industries.
Introduced by State Representative Juanita Head Walton, HB 482 increases the penalties for the most egregious counterfeiting offenses and requires forfeiture of any and all property used in such endeavors. AAFA joins many other organizations in support of HB 482, including the US Chamber of Commerce’s Coalition Against Counterfeiting and Piracy, the National Association of Manufacturers and the Pharmaceutical Research and Manufacturers Association. With AAFA, these groups voiced the support of their members through phone calls, emails and letters to express the absolute need for the strict enforcement listed in this legislation, which will begin bringing these rampant violations to an end. In early April, this bill passed the Missouri House 155-1, was sent to the Senate and was subsequently reported out of committee favorably. Unfortunately, this legislation was not acted upon in the final days of the Missouri Senate session. Nevertheless, we will continue to monitor the reintroduction and movement of this bill in the next legislative cycle and push for its eventual passage into law.

05.15.07
AAFA joined with over 50 other companies and organizations in sending a May 15 letter to Secretary of Commerce Carols Gutierrez on the US government's current countervailing duty (CVD) and anti-dumping (AD) cases against US glossy coated paper imports from China. In the letter, the signatories recognized the importance of strong provisions to combat unfair subsidies and dumping, but urged the US Department of Commerce to modify its procedures and calculations in adjudicating the cases in order to avoid imposing punitive duties twice for the same alleged "dumping" or subsidy.

05.11.07
In light of the trade/labor deal struck May 10 between Congress and the Bush administration, AAFA joined with 11 other organizations in an unprecedented coalition representing the entire textile and apparel supply chain -- fiber producers, yarn spinners, knitters, weavers, dyers, equipment suppliers, apparel manufacturers, importers and retailers -- to send letters May 11 to President Bush and members of Congress urging quick approval of the U.S./Colombia Trade Promotion Agreement and the U.S./Peru Trade Promotion Agreement. The coalition also urged President Bush and Congress to ensure that there is no interruption in duty-free benefits between the current Andean Trade Promotion & Drug Eradication Act (ATPDEA), currently set to expire June 30, and the approval and implementation of the Trade Promotion Agreements.

05.11.07
AAFA submitted comments May 11 to the US International Trade Commission (ITC) regarding its ongoing study into US production of performance outerwear (pants and jackets). In its comments, AAFA noted that performance outerwear jackets and pants are innovative, specialty apparel products manufactured for use in a variety of outdoor activities. AAFA believes these products are not produced in the United States for the commercial market.

05.10.07
AAFA, along with many AAFA members, joined a coalition of 199 companies and organizations in sending a May 10 letter to California Senator Alan Lowenthal opposing SB 974. The legislation would impose a $60 per container fee on all containers leaving or entering the Ports of Los Angeles, Long Beach and Oakland to raise revenue for environmental projects. Already approved by the California State Senate's Transportation Committee and slated for consideration by the Senate Appropriations Committee May 14, many expect the legislation to easily pass the California General Assembly. While California Governor Arnold Schwarzenegger (R) vetoed a similar measure last year, he will likely sign the revised legislation. AAFA is part of a coalition exploring possible options moving forward.

04.30.07
AAFA submitted comments April 30 to the US International Trade Commission (ITC) regarding the ITC's interim regulations on commercial availability under the African Growth and Opportunity Act (AGOA), otherwise known as "abundant supply." The mechanism allows the ITC to require manufacturers of apparel under AGOA's third-country fabric provision to use certain yarns and fabrics in specific quantities found to be in "abundant supply" for a period of one year if the specific yarn or fabric is indeed available in commercial quantities in sub-Saharan Africa. In its comments, AAFA urges the ITC to be as open and transparent as possible and to clarify some of the confusion generated by the interim regulations, including who can petition for designations under the procedures and who can comment on those petitions as well as allowing petitions to remove items from abundant supply.

04.24.07
The US Department of Commerce held a hearing on April 24 on the Department's monitoring program on US apparel imports from Vietnam. AAFA, along with AAFA members International Textile Group (ITG), Liz Claiborne, Inc. and Hampshire Group, testified against the program. Of the 12 witnesses testifying, only one testified in support of the program -- the National Council of Textile Organizations (NCTO). No apparel companies or organizations representing domestic apparel interests have so far testified in support of the Department's import monitoring program. AAFA testified that Commerce needs to first identify the domestic apparel manufacturing that is being injured or that has the potential to be injured by dumped imports from Vietnam (should there be a finding that there is dumping from Vietnam). This is a basic requirement for any successful anti-dumping case to move forward. AAFA argued that the monitoring the Department is doing now is creating a lot of confusion and not yielding any of the transparency and predictability that the industry was promised toward the end of last year. If, for example, there is no domestic production or interest in monitoring by an identified domestic industry, the government shouldn't spend the time or taxpayers money, scare the trade nor create false expectations by monitoring imports of those products. It is unclear what the next steps are at this time. In one possible sign, it appears that the Department will soon start to explore "surrogate" countries against which they can judge Vietnam imports to see if those imports are being dumped. If true, it would be a troubling sign as the Department would be trying to find out if dumping is occurring without first finding out if anybody who makes a similar product is actually injured by or interested in the dumping issue.

04.16.07
AAFA sent a letter April 16 to California Senator Alan Lowenthal opposing SB 974, legislation that would impose a $60 per container fee on all containers leaving or entering the Ports of Los Angeles, Long Beach and Oakland to raise revenue for environmental projects. The California State Senate's Transportation Committee is tentatively scheduled to consider the bill this week.

04.11.07
As reported last week, AAFA has recently submitted comments in support of S. 522, the Intellectual Property Rights Enforcement Act, sponsored by Senators Evan Bayh (D-IN) and George Voinovich (R-OH). This is legislation that would build upon the current and past Administration efforts to combat the trafficking in counterfeit goods and protect U.S. intellectual property rights in the United States and abroad.

3.26.07
With U.S./Korea Free Trade Agreement talks facing a critical (and possibly final round) in Seoul Korea during the last week of March, AAFA President and CEO Kevin M. Burke sent a letter to the U.S. Trade Representative, Ambassador Susan Schwab, reinforcing key provisions that need to be included in the FTA for it to be commercially meaningful for the apparel and footwear industries.

03.23.07
As part of the implementation of the changes to the Berry Amendment included in the FY 2006 Defense Authorization Act, AAFA submitted comments on March 23 in support of the foreign source restriction expansion. Specifically, this provision was prompted due to a concern that certain inputs like leather were not uniformly interpreted as being covered by the Berry Amendment due to the fact that they are not a textile input. The provision implemented under this regulation implementation includes a clarification to state that materials and components thereof would be covered. AAFA also encouraged the implementation of transparency provisions also included in the FY 2006 Authorization bill and a permanent posting of Berry waivers on FedBizOps or the Defense Supply Center in Philadelphia (DSCP) website.

03.15.07
AAFA submitted comments to the Office of the US Trade Representative March 15 and to the US International Trade Commission on March 19 urging the US government to quickly implement duty-free and quota-free access for US imports of ALL products from the world's 41 least developing countries (such as Bangladesh, sub-Saharan Africa and Cambodia) under simple and flexible rules of origin as part of the ongoing Doha Round of global trade negotiations. If the United States must exclude "sensitive" products, it should only do so when there is a consensus that those products are indeed sensitive (like the 17/20 specific rubber/fabric and plastic/protective footwear items). Finally, AAFA strongly urges that the United States continue to impose its complete ban on US imports from Burma under any program because of the ruling military junta's continued egregious human and labor rights abuses.

03.12.07
AAFA submitted comments March 12 in response to a US International Trade Commission study. In its comments, AAFA describes the important relationship the US footwear and apparel industry has with China, not only as a supplier, but also as a major consumer market. The comments urge the Bush administration to use caution in determining any possible action by the Bush administration or Congress against China for alleged violations of international trading rules in light of the important relationship the apparel and footwear industry and many other US industries have with China.

03.05.07
The US Senate defeated an amendment to proposed homeland security legislation (S.4) introduced by Senators Chuck Schumer (D-NY) and Bob Menendez (D-NJ) on a procedural vote by a vote of 58-38. The amendment would have required foreign ports to scan 100 percent of US bound containers for radiological materials in three years for large foreign ports and 5 years for small ports. The issue could arise again, however, when the port security bill passed in January by the US House of Representatives (which includes a 100 percent scanning requirement) must be reconciled in conference with the Senate legislation. AAFA opposed the amendment because the current technology still leads to a high false-positive rate of .15 percent, which would translate into a minimum of 150,000 false-positive containers being detained yearly by Customs for intensive inspections. Such a situation would grind trade to a halt. AAFA supports the current pilot program at three foreign ports to test available technology and customs procedures.

03.05.07
AAFA sent letters March 5 to Customs Commissioner W. Ralph Basham as well as numerous Bush administration officials urging them to prevent a decision by Customs to overturn current rulings applying to textile outsole (fabric bottom) footwear. Instead of continuing the current standard that allows canvas upper, rubber bottom footwear to receive lower duty-rates as long as fabric is somehow embedded or otherwise permanently affixed to the sole of the shoe, AAFA has learned that Customs is proposing a new wear test that would not only require that the fabric be imbedded into the sole, but that the fabric on the outer sole survive three months of regular wear before wearing off. Such a change would likely cost US footwear firms at least $200 million a year in additional duties. AAFA continues to work with the Footwear Distributors & Retailers of America (FDRA), the law firm of Sandler, Travis & Rosenberg and interested US footwear companies in trying to prevent any significant changes from the current 30+ Customs rulings allowing the use of textile outsoles. 

03.01.07
As expected, on March 1 the House approved a bill (HR 800) that would eliminate important workforce protections relating to union organizing. The legislation, which passed on a near party-line vote of 241 to 185, would replace the current system of federally supervised secret ballots with a simple "card check". While proponents believe this legislation is needed to promote unionization efforts, critics maintain that the legislation would constitute an assault on democracy, privacy and security at the workplace. AAFA sent a "key vote" letter to every House member urging a NO vote. Immediately after the House action, AAFA President Kevin M. Burke issued a statement urging the Senate to reject this legislation should it be considered.
Although the Senate champion of this legislation, Senator Ted Kennedy (D-MA) has indicated his intention to move a Senate companion bill, conventional wisdom now suggests that there is insufficient support in the Senate for the legislation to move. Moreover, President George W. Bush has already announced he will veto this legislation. Nevertheless, it is important for AAFA members to continue to voice their opposition to this poorly crafted legislation.

02.28.07
AAFA submitted comments February 28 to the European Commission’s Enterprise Directive opposing European Union (EU) legislation (80/181/EEC) that would require labeling and product information for products sold in Europe to use metric-only measurements beginning on January 1, 2010. AAFA noted that the continuation of the current policy of allowing dual metric/US measurements would benefit both European and US businesses and consumers and help to keep EU and US labeling requirements in harmony.

02.26.07
AAFA submitted written testimony February 26 to the powerful House Ways & Means Committee as part of the Committee's February 15 hearing on Trade with Chin. In its testimony, AAFA describes the important relationship the US footwear and apparel industry has with China, not only as a supplier, but also as a major consumer market.  

02.13.07
In comments submitted February 13to the Office of the US Trade Representative (USTR), AAFA urged the Bush administration to certify Haiti under the Haitian Hemispheric Opportunity Through Partnership Encouragement (HOPE) Act and implement the program as soon as possible. The longer HOPE is delayed, the worse the economic and political situation in Haiti will deteriorate. HOPE shores up Haiti's faltering apparel industry by offering additional opportunities for duty-free access for US apparel imports from Haiti.  

02.16.07
AAFA sent a February 16 letter to Secretary of Commerce Carlos Gutierrez urging the US Department of Commerce to comply with a World Trade Organization (WTO) decision that requires the United States to partially eliminate the practice of "zeroing" in anti-dumping cases. Not only is the practice WTO-illegal, but the use of "zeroing" by the US Commerce Department is arbitrary and capricious. The practice allows the Department to arbitrarily suppress US sales data collected in the course of its investigation that are below the Department's constructed "normal value." This practice serves no other purpose than to artificially inflate dumping margins. The letter also notes that the failure of the United States to comply with its obligations under global trading rules usually hurts US apparel and footwear firms in the form of foreign countries imposing retaliatory duties against US-made and US-branded apparel and footwear. 

02.14.07
In what AAFA expects to be the first of many hearings on "sweatshops" in Congress, Senator Byron Dorgan (D-ND), Chairman of the Interstate Commerce, Trade, and Tourism Subcommittee of the Senate Committee on Commerce, Science and Transportation, held a hearing February 14 titled Overseas Sweatshop Abuses, Their Impact on US Workers, and the Need for Anti-Sweatshop Legislation (For a list of witnesses, copies of their testimony and a webcast of the hearing, please go to the Senate Commerce Committee website). While the list of witnesses appeared "stacked," witnesses from WRAP and the CATO Institute, a libertarian think-tank, successfully highlighted the expansive efforts of the US apparel and footwear industries and others to improve work place conditions overseas. The CATO Institute witness also detailed the flaws in recent legislation introduced by Senator Dorgan that would, among other things, allow US businesses, including their shareholders, a private right of action to sue other US companies allegedly importing product made with as yet undefined "sweatshop" labor. AAFA submitted a written statement for the hearing record. Only two members of the 23 member Senate Commerce Committee -- Senator Dorgan and Senator Jim DeMint (R-SC) -- participated in the lightly-attended hearing. This hearing comes at a critical time as the Bush Administration and Congress work to try to reach a compromise over the role of labor rights in free trade agreements.

02.12.07
Last week, AAFA submitted comments to the United States Trade Representative (USTR) under Section 182 of the Trade Act of 1974. The purpose of these comments, commonly called “Special 301”, is to identify countries that provide inadequate protection of intellectual property rights via inadequate laws or lack of enforcement. A myriad of countries and issues were identified by AAFA member companies. Some of the overlapping concerns in several countries included the need for stronger penalties, additional resources to combat and prosecute counterfeit cases, disposal of counterfeit goods and equipment, among others.
Comments submitted by US companies and associations will be used by the USTR to determine which countries will be placed on or kept on the priority watch list or the watch list to be evaluated on whether further action is needed to get these countries to comply with the WTO requirements.

02.09.07
AAFA President and CEO Kevin Burke, together with the heads of 8 other trade associations, sent a letter on February 9 to Commerce Secretary Carlos Gutierrez urging full funding for the Textile/Clothing Technology Corporation [TC]² and the National Textile Center (NTC). The letter notes that importance of these organizations to a competitive textile and apparel industry and the rule Commerce has played in providing funding for these organizations in the past.

02.07.07
AAFA submitted comments February 7 to the House Ways & Means Committee strongly supporting the Bush administrations efforts to comply with a World Trade Organization (WTO) decision that requires the United States to partially eliminate the practice of "zeroing" in anti-dumping cases. Not only is the practice WTO-illegal, but the use of "zeroing" by the US Commerce Department is arbitrary and capricious. The practice allows the Department to arbitrarily suppress US sales data collected in the course of its investigation that are below the Department's constructed "normal value." This practice serves no other purpose than to artificially inflate dumping margins. 

2.6.07
President Bush last week asked Congress to extend Trade Promotion Authority (TPA), which is currently set to expire on June 30, 2007. The President needs TPA renewed so he can negotiate trade agreements, such as the multilateral trade round currently under discussion, and submit them to Congress for consideration. President Bush's announcement was welcomed by AAFA and numerous business groups. Prospects for renewal remain uncertain.
TPA renewal has received cautious support from key Democrats, such as Senate Finance Committee Chairman Max Baucus (D-MT), but only to the extent that other issues, such as job training, labor rights protection and environmental standards are addressed. Similarly, in the aftermath of the 2006 mid-term elections, a number of Democrats in both chambers have expressed wariness over any renewed grant of TPA. 

02.01.07
AAFA President and CEO Kevin M. Burke submitted comments to the U.S. China Economic and Security Review Committee on February 1. Acknowledging the complexity of the bilateral relationship, the comments urge that U.S./China policy discussions be conducted in a way that reflects the continued importance of China to many U.S. businesses and in a manner consistent with WTO obligations. 

01.31.07
In response to a request for comments by the Commerce Department’s Import Administration, AAFA President and CEO Kevin M. Burke submitted comments on January 31 on the proposed Vietnam import monitoring program. The comments echoed an earlier statement by AAFA stressing that the import monitoring program be conducted consistent with U.S. law and in a manner that provides a predictable environment.
AAFA also signed onto a second set of comments submitted by a number of trade associations and individual companies, including many AAFA member companies. The Department had previously announced it is already monitoring selected apparel imports from Vietnam, which could lead to an anti-dumping case, but has so far failed to provide many details on this program. To view all 12 comments submitted on January 31, please visit Commerce's Import Administration website. Companies wishing to receive information directly from the Commerce Department on this issue can email vietnam-texapp-monitor-hotline@mail.doc.gov and request to be added to a special email list.

1.31.07
US Representative Robin Hayes (R-NC) and US Senator Elizabeth Dole (R-NC) reintroduced AAFA-supported legislation that would confer the title of "Ambassador" on and require Senate confirmation for the position of Special Textile Negotiator. The Office of the US Trade Representative's Special Textile Negotiator is the US government's lead trade negotiator on apparel and textile issues. In the past, the negotiator's lack of ambassadorial status has limited his ability to negotiate trade agreements. 

1.23.07
In response to an August 3 letter from AAFA and other organizations, Congressman Robin Hayes (R-NC) on September 6 introduced legislation (H.R. 6032) to redesignate the US government's Special Textile Negotiator as the Chief Textiles Negotiator and confer the rank of Ambassador upon that position.

1.17.07
The US House of Representatives, by a vote of 299 to 128, approved new port security legislation containing an AAFA-opposed provision requiring 100 percent scanning within five years of all cargo before it enters the United States. The bill was ap, proved as part of the new Democratic House leadership's first ", 100 hours" initiative. AAFA opposes the amendment because, among other things, technology is not yet available to impose 100 percent scanning. Prospects for 100 percent scanning in the Senate are not clear at this time. 

1.8.07
AAFA, on December 27, submitted comments and signed onto another set of comments in response to a US government request on how a proposed program monitoring US , imports of apparel and textiles from Vietnam would be structured. (View all submissions on the US Department of Commerce website.) The vast majority of the almost two dozen comments submitted, including AAFA's, opposed, or expressed serious concerns with, the proposed import monitoring program. Many felt the monitoring program is unnecessary and/or the government lacks the authority to actually conduct the import monitoring program in a manner consistent with US statute and World Trade Organization (WTO) obligations. A large number of comments also urged greater transparency in the development of the monitoring program and cautioned the government to ensure that the only products monitored are those that are in fact produced domestically (and only when those producers actively support the monitoring).
The US Department of Commerce's Import Administration will likely issue a new Federal Register notice shortly outlining the monitoring program itself. AAFA expects that this notice will allow additional opportunities for interested parties to comment. Regardless, AAFA expects that the US Department of Commerce will implement some form of interim monitoring program on January 11, the date of Vietnam's WTO accession.
Meanwhile, at the urging of AAFA and others, the US government's Committee for the Implementation of Textile Agreements (CITA) announced that the US government has imposed full year 2007 quotas on US apparel and textile imports from Vietnam to provide additional flexibility to manage the transition from 2006 to 2007. According to CITA, the quotas will be removed on January 11, the date of Vietnam's WTO accession (for exports of apparel and textiles leaving Vietnam on or after January 11).