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CAFTA
U.S./Central America-Dominican Republic Free Trade Agreement
LATEST CAFTA NEWS
10.01.07
AAFA members are advised that new rules of origin with respect to pocketing and selected other products – such as certain dresses, coats and dress shirts – could take effect sometime this fall or early next year under the U.S./Central America-Dominican Republic Free Trade Agreement (CAFTA). The new rules will take effect following publication of a proclamation that is currently being developed by the U.S. government. While there is no effective date yet, the proclamation could be published as soon as the middle of November. For more information, please contact Steve Lamar at 703.797.9041.
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. CITA received more than 50 comments from a number of interested parties in the U.S. and Central America. Under the terms of the CAFTA safeguard process, CITA now has 60 days to decide if it wants to initiate consultations with the Honduran Government on this issue.
In related news, the US International Trade Commission (ITC) issued a new report September 18 that found that the pocketing and rule of origin changes will likely have a negligible impact on US production and trade in the subject apparel goods because the CAFTA region is not a major source of the subject apparel goods and these goods typically do not compete with domestically produced articles.
Meanwhile, the US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) requests comments on a petition submitted September 18 by New World Sourcing requesting that certain herringbone twill polyester / rayon / spandex woven fabric under 5515.11.0040 of the Harmonized Tariff Schedule of the United States (HTS), as described in the petition, be declared in short supply under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). If approved, apparel made in any of the CAFTA countries using the subject third-country fabric can enter the United States or any other CAFTA country duty-free under the agreement. Comments are due by October 3.
8.27.07
More than half (51.5 percent) of Costa Ricans who plan to vote in the upcoming October 7 referendum will vote in favor of the US/Central America-Dominican Republic Free-Trade Agreement (CAFTA) with the United States (CAFTA), surpassing the 42.1 percent who said they will vote no in this historic election, according to the results of a new poll published in the August 1 issue of the Costa Rican daily La Nación. If enough Costa Ricans turn out (they need 40 percent for the results to be binding), and a majority of those who show up vote yes, then the agreement will be deemed approved. The Costa Rican legislature will still need to approve the various implementation bills, but an affirmative vote on the referendum will be a huge step forward. Many experts believe Costa Rica could join CAFTA by the end of the year. Costa Rica must implement CAFTA by March 1, 2008.
8.27.07
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) reduced the tariff preference level (TPL) for Nicaragua for the year 2007 under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). The new level is 97,584,339 square meters equivalent (SME). According to CITA, this reduction occurred due to a shortfall in meeting the one-to-one commitment for woven trousers made of cotton or man-made fibers that are exported from Nicaragua to the United States. An exchange of letters between the United States and Nicaragua in 2006 established that for each SME of exports of cotton and manmade fiber woven trousers entered under the TPL, Nicaragua would export an equal amount of cotton and manmade fiber woven trousers made of US formed fabric from US formed yarn. According to CITA, the 2006 shortfall in meeting this one-to-one commitment was 2,415,661 SME, resulting in the reduced TPL level for 2007.
7.27.07
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) requests comments on five different petitions submitted July 15 by Garan Manufacturing Corporation requesting that certain circular knit three end fleece fabric under 6001.21 of the Harmonized Tariff Schedule of the United States (HTS), as described in the petitions, be declared in short supply under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). If approved, apparel made in any of the CAFTA countries using the subject third-country fabric can enter any other CAFTA country duty-free under the agreement. Comments are due by July 20.
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) requests comments on a July 7 petition from Ascot, LLC requesting that certain woven 100 percent textured filament polyester fabric under 5407.52 and 5407.54 of the Harmonized Tariff Schedule of the United States for use in rental formalwear shirts, as described in the petition, be declared in short supply under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). If approved, rental formalwear shirts made in any of the CAFTA countries using the subject third-country fabric can enter any other CAFTA country duty-free under the agreement. Comments are due by July 20.
7.10.09
On June 18, the Government of the Dominican Republican filed a short supply request under the DR-CAFTA covering 29 fabrics (28 woven; 1 knit). Details of the request -- the largest such petition ever filed under the DR-CAFTA short supply procedures -- can be found on the US Commerce website. Companies that believe they can supply any of these fabrics should contact the Committee for the Implementaton of Textile Agreements by July 2. A final decision is expected to be rendered by July 31.
On June 20, the U.S. International Trade Commission (ITC) revised the deadline for comments in connection with an investigation on the probable economic effect of modifications to the DR-CAFTA rules because of changes in rules of origin related to pocketing fabrics. The revised deadline reflects a slight change made to a previously signed letter between the United States and Costa Rica to confirm that Chapter Notes related to originating pocketing, elastic strips and sewing thread do not apply to those products that benefit from "cut and sew" rules. The new deadline for comments is August 30. The ITC review is necessary before the amendments can enter into force.
6.20.07
Costa Rica has re-scheduled its public referendum regarding the country's entry into the US/Central America-Dominican Republic Free Trade Agreement (CAFTA) to October 7. The referendum has been pushed back in order to allow the Costa Rica's Constitutional Court more time to review the agreement and to re-open voter registration. According to the latest polls, the referendum is expected to be approved. However, Costa Rica is still not expected to join the CAFTA until the beginning of 2008 because of other implementation issues.
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA), effective June 8, approved an April 30 Textiles Capuano SA short supply petition. CITA determined that certain synthetic staple fibers, not carded, combed or otherwise processed for spinning of acrylic or modacrylic (Raw White Bright, Dull or Semi Dull - Acrylic Short Staple Fiber, 1.3 DTEX to 1.5 DTEX Bright 38-40 mm) under 5503.30.00 of the Harmonized Tariff Schedule of the United States, as specified in the petition, are not commercially available under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). Apparel made in a CAFTA country using the subject third-country fibers can now enter the United States or any other CAFTA country duty-free.
The US Department of Homeland Security's Bureau of Customs and Border Protection (Customs) issued final regulations May 25 for submitting and receiving duty refunds on imports of apparel and textiles (including textile travel goods) under "retroactivity" provisions of the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). The notice states the applications for duty refunds will be accepted until 90 days after the last signatory country enters CAFTA. Costa Rica is the only CAFTA country yet to approve and implement the agreement. They are expected to join CAFTA sometime in early 2008.
5.31.07
The US Department of Homeland Security's Bureau of Customs and Border Protection (Customs) issued final regulations May 25 for submitting and receiving duty refunds on imports of apparel and textiles (including textile travel goods) under "retroactivity" provisions of the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). The notice states the applications for duty refunds will be accepted until 90 days after the last signatory country enters CAFTA. Costa Rica is the only CAFTA country yet to approve and implement the agreement. They are expected to join CAFTA sometime in early 2008.
5.2307
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA), effective May 18, approved an April 18 Channel Fabrics short supply petition. CITA determined that certain two-way stretch ("BiStretch") fabrics consisting of a spun polyester/rayon warp wrapped around a spandex filament core and a filament polyester filling also wrapped around a spandex core listed under 5407.92.20 and 5407.93.20 of the Harmonized Tariff Schedule of the United States, as specified in the petition, are not commercially available under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). Apparel made in a CAFTA country using the subject third-country fabric can now enter the United States or any other CAFTA country duty-free.
5.11.07
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) requests comments on an April 30 petition from Textiles Capuano S.A. requesting that certain synthetic staple fibers, not carded, combed or otherwise processed for spinning of acrylic or modacrylic (Raw White Bright, Dull or Semi Dull - Acrylic Short Staple Fiber, 1.3 DTEX to 1.5 DTEX Bright 38-40 mm) under 5503.30.00 of the Harmonized Tariff Schedule of the United States, as described in the petition, be declared in short supply under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). If approved, apparel made in any of the CAFTA countries using yarn made from the subject third-country fiber can enter any other CAFTA country duty-free under the agreement. Comments are due May 16.
5.4.07
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA), effective April 27, approved a March 14 Intradeco petition. CITA determined that certain circular knit napped fleece fabric employing three yarn systems ("three threads"), as specified in the petition, is not commercially available under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). Apparel made in a CAFTA country using the subject third-country fabric can now enter the United States or any other CAFTA country duty-free.
4.26.07
In response to opposition demands, the government of President Oscar Arias announced April 13 that Costa Rica will hold a referendum this summer on whether Costa Rica should implement the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). Meanwhile, the US government announced April 17 that it will now allow refunds under CAFTA's retroactivity provisions for qualifying US imports of textiles and apparel from the Dominican Republic.
In related news, the US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) requests comments on an April 18 petition from Channel Fabrics requesting that certain two-way stretch ("BiStretch") fabrics consisting of a spun polyester/rayon warp wrapped around a spandex filament core and a filament polyester filling also wrapped around a spandex core listed under 5407.92.20 and 5407.93.20 of the Harmonized Tariff Schedule of the United States, as described in the petition, be declared in short supply under CAFTA. If approved, apparel made in any of the CAFTA countries using the subject third-country fabric can enter any other CAFTA country duty-free under the agreement. Comments are due May 2.
4.12.07
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) requests comments on a March 14 petition from Intradeco Apparel requesting that CITA declare that certain circular knit napped fleece fabric employing three yarn systems ("three threads"), as specified in the petition, are not commercially available under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). If approved, apparel made in a CAFTA country using the subject third-country fabric would be able to enter the United States or any other CAFTA country duty-free. Comments are due March 30.
Meanwhile, CITA has issued the final procedures governing the CAFTA Commercial Availability process. (Nate Herman).
3.5.07
2.22.07
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) approved two and denied a third commercial availability petition under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). In the first two decisions, CITA determined that certain woven two-way stretch fabrics, as described in the petitions, are not available in commercial quantities in the United States or any of the CAFTA countries. As a result, apparel made in any CAFTA country from certain third-country woven two-way stretch fabrics can enter the United States or any other CAFTA country duty-free. CITA denied a third petition, determining that certain wool and wool blend fabrics, as described in the petition, are indeed available in commercial quantities in the CAFTA region.
1.31.07
US Trade Representative (USTR) Susan Schwab and Mexican Secretary of Economy Eduardo Sojo signed a custom cooperation agreement January 26 (USTR Press Release). The agreement is the first step in implementing the textile cumulation provisions of the US/Central America-Dominican Republic Free trade Agreement (CAFTA). When cumulation is implemented, a limited amount of apparel made in CAFTA countries using yarn and fabric from Mexico can enter any CAFTA country, including the United States, duty-free. Before the cumulation provisions can be implemented, however, Mexico and each of the CAFTA countries must now change their respective free trade agreements to allow cumulation in those agreements. Meanwhile, another deadline for the Dominican Republic's entry into CAFTA will have come and gone because of new disputes over the Dominican Republic's (DR) compliance with the provisions of CAFTA, this time involving a new DR proclamation involving fuel transportation issues. March 1 is now the expected entry date for the Dominican Republic.
1.25.07
Informed sources predict that, after months of delay, the Dominican Republic will likely join the US/Central America-Dominican Republic Free Trade Agreement (CAFTA) on February 1, although this date is by no means assured. Despite published reports this week claiming the contrary, Costa Rica remains on pace to join CAFTA by summer.
Meanwhile, the US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) requests comments on a January 16 petition from Lido Industries requesting that certain two-way stretch fabrics classified under HTS subheading 5515.11.00 in which both warp and filling yarns are a blend of chief weight polyester staple mixed with viscose rayon staple, plied and wrapped around a core of filament spandex yarn (as described in the petition) be declared not available in commercial quantities in a timely manner under CAFTA as well as a January 17 petition from Glen River Trading requesting that certain two-way stretch woven fabrics of polyester, rayon, and elastomeric yarns classifiable under HTS subheading 5515.11.00 (as described in the petition) be declared not available in commercial quantities in a timely manner under CAFTA. The rebuttal period closes January 30 for the Lido petition and January 31 for the Glen River Trading petition. Responses to any rebuttals are due February 5 for the Lido petition and February 6 for the Glen River Trading petition. If CITA approves the petitions, apparel made in a CAFTA country from third-country subject fabrics listed in the petitions would be able to enter the United States and any other CAFTA country duty-free under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA).
1.17.07
The US Department of Homeland Security's Bureau of Customs and Border Protection (Customs) issued a new directive January 4 extending the deadline for refund claims under the retroactivity provisions of the US/Central America-Dominican Republic Free Trade Agreement (CAFTA) until 90 days after the last country joins CAFTA. Customs will soon publish a Federal Register notice confirming this extension.
1.8.07
CITA received a December 18 petition from Rothschild requesting that certain wool and camel hair fabrics (as described in the petition), classified under HTS 5511.19.60.40 or HTS 5511.19.60.80, be declared not available in commercial quantities in a timely manner under CAFTA. The rebuttal period closes tomorrow, January 9. Responses to any rebuttals are due January 16. If CITA approves the petition, apparel made in a CAFTA country from third-country subject fabrics would be able to enter the United States and any other CAFTA country duty-free under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA).
12.11.06
The United States and Costa Rica reached a deal December 1 on pocketing under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). With completion of this deal, the United States has now reached deals with all six of its CAFTA partners and can now move towards convening all seven CAFTA countries together to combine, finalize and implement all of the pocketing deals, possibly by as early as February. Despite reaching this deal, Costa Rica will not likely join CAFTA until the summer of 2007 at the earliest. In other news, many hope the Dominican Republic will join by the end of the year. Meanwhile, the US Department of Homeland Security's Bureau of Customs and Border Protection (Customs) has indicated that it will soon extend the time period for which to submit refund claims under the retroactivity provisions of CAFTA since neither the Dominican Republic nor Costa Rica have yet joined the agreement.
12.05.06
The United States and Mexico completed the first step in implementing the cumulation provisions under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA) when they signed a customs cooperation agreement on November 17. The Mexicans and the CAFTA countries now must pass amendments to their free trade agreements to allow cumulation to move forward. Once implemented, cumulation will allow a limited amount of apparel made in the CAFTA countries from Mexican yarn and fabric to enter the United States duty-free.
Meanwhile, due to delays in passage of legislation in the Dominican Republic, the Dominican Republic did not join CAFTA as expected on December 1. The Dominican Republic is still expected to join CAFTA before the end of the year.
11.20.06
AAFA and three other associations sent a November 13 letter to US Trade Representative Susan Schwab urging the Bush administration to implement the cumulation provisions of the US/Central America-Dominican Republic Free Trade Agreement (CAFTA) as soon as possible. Cumulation would allow duty-free access for a limited amount of apparel made in the CAFTA region from Mexican yarn and fabric.
11.14.06
Sandinista leader Daniel Ortega won the presidency of Nicaragua in a November 5 three-way election with a vote of 38 percent for Ortega and 29 percent for his nearest competitor, Eduardo Montealegre. Ortega has hinted that he might review 's participation in the US/Central America-Dominican Republic Free Trade Agreement (CAFTA).
10.30.06
As a result of Dominican Republic President Leonel Fernández's meeting with President Bush last week, the Dominican Republic has closed all outstanding issues (pocketing letter, Intellectual Property Rights (IPR)) blocking its accession to the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). While it is hoped that the Dominican Republic could join as early as this week, many believe a November 15 implementation date is more realistic.
10.25.06
Most experts believe that Dominican President Leonel Fernández's trip to Washington, DC on October 25 to meet President Bush will be used as the occasion to announce that the Dominican Republic will formally join the US/Central America-Dominican Republic Free Trade Agreement (CAFTA) on November 1.
10.4.06
The US Department of Homeland Security's Bureau of Customs & Border Protection (Customs) published new instructions to the ports on issuing refunds under the retroactivity provisions of the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). These new instructions update the instructions issued earlier in the year to take into account the co-production changes enacted by Congress in August (that mostly addressed the retroactivity problem with CAFTA products using inputs from countries not yet part of CAFTA). Please note that Customs has still not addressed the issue relating to the early end date for the retroactivity window. Customs indicates in the new notice that they are aware of the problem, which will be most acute for Costa Rica and the Dominican Republic. From the notice, it also appears that Customs is willing to address the problem at a later date, but probably only with respect to goods relating to those two countries. Thus, AAFA recommends that, if you have a refund application that can be sent in now, and it is not dependent upon entry into force of CAFTA with respect to the Dominican Republic or Costa Rica, you submit the refund application to Customs as soon as possible.
In related news, the US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) approved a short supply request, effective September 26, determining that certain 2-way stretch woven fabrics (as described in the notice) are not available in commercial quantities in a timely manner in the CAFTA region. With this approval, apparel made in the CAFTA region from the subject third-country fabric can enter any CAFTA country duty-free.
9.7.06
AAFA sent a letter August 14 to Guatemalan President Oscar Berger congratulating Guatemala on joining the US/Central America-Dominican Republic Free Trade Agreement (CAFTA), but expressing concern about the surge in gang violence in the country. Guatemala has already responded to the letter by crafting a plan to fight the gang violence.
In related news, the US Department of Homeland Security's Bureau of Customs & Border Protection (Customs) issued a new ruling July 13 allowing for the use of certain non-originating sewing thread -- textured polyester 200 denier single multifilament yarn that is dyed, finished with a sewing lubricant, “Z” twisted, and put up on reels weighing less than 1000 grams -- under CAFTA. As a result, apparel made in a CAFTA country from third-country subject yarn can enter the United States duty-free under CAFTA.
Meanwhile, the US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) received an August 17 petition from Lido requesting that certain two-way stretch fabrics, classified under 5515.11.00 of the Harmonized Tariff Schedule of the United States (HTS), in which both warp and filling yarns are a blend of chief weight polyester staple mixed with viscose rayon staple, plied and wrapped around a core of filament spandex yarn be declared not available in commercial quantities in a timely manner under CAFTA.
The rebuttal period has already closed without any rebuttals being submitted. If CITA approves the petition, apparel made in a CAFTA country from third-country subject fabrics can enter the United States and any other CAFTA country duty-free under CAFTA.
8.11.06
The US Senate on August 3 approved by 93-5 AAFA-supported House-passed pension reform legislation that includes important fixes to the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). Once signed by President Bush and implemented, the fixes will provide US apparel firms the ability to get refunds on CAFTA eligible textile and apparel products already imported at full duty and CAFTA-eligible textile and apparel products that have yet to be imported, but which will still have to pay full duty because neither the Dominican Republic nor Costa Rica have yet acceded to CAFTA. In addition, the provisions provide authority for the President to limit the Nicaragua TPL (as an enforcement mechanism related to the 1:1 provision) and make proclamations related to the pocketing side deals (both those done and those yet to be done). The pension reform bill also contains a number of miscellaneous trade provisions that suspend duties on US imports of a range of selected footwear, apparel and textile products and inputs. Meanwhile, talks are continuing on resolving issues surrounding the Dominican Republic's decision, effective July 1, imposing a new 0.4 percent Customs container tax on the CIF value of ALL goods imported into the Dominican Republic, including imported inputs destined for the free trade zones. Finally, the US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) rejected a petition August 4 requesting that certain 100 percent cotton napped (flannel) fabrics be deemed in "short supply" under CAFTA. In rejecting the petition, CITA instead claimed that a CAFTA-based company can supply the subject fabric. If CITA had approved the petition, CAFTA-qualifying apparel made in a CAFTA country using third-country subject fabric would have qualified for duty-free entry into any CAFTA country.
8.1.06
Late last week, the House approved legislation making key fixes to the U.S./Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) as part of an unrelated bill addressing pension reform. The legislation now goes to the Senate which is hoping to take up and approve the legislation this week. If enacted, the fixes would provide importers the ability to get refunds on CAFTA eligible textile and apparel products already imported at full duty and CAFTA eligible textile and apparel products that have yet to be imported, but which will still have to pay full duty because neither the Dominican Republic nor Costa Rica has yet acceded. In addition, the provisions would provide authority for the President to limit the Nicaragua TPL (as an enforcement mechanism related to the 1:1 provision) and make proclamations related to the pocketing side deals (both those done and those yet to be done). In addition, the pension reform bill contains a number of miscellaneous trade provisions that suspend duty on a range of selected footwear, apparel, and textile products and inputs.
7.19.06
AAFA sent a July 12 letter to US Secretary of Commerce Carlos Gutierrez requesting the Secretary to correct press statements regarding the urgency of implementation of the US/Central America-Dominican Republic Free Trade Agreement (CAFTA) and urged the Secretary and his staff to recommit to implementing CAFTA both correctly and quickly. Due to continued delays in implementation of the agreement and the resulting co-production problems they cause, US apparel imports from and US textile exports to the CAFTA region continue to slide (See latest AAFA chart as well as related article below). AAFA continues to work with the Bush administration and Congress to resolve the problems generated by staggered implementation of CAFTA.
US apparel imports (actual data) declined 3.0 percent to 8.1 billion SME worth $25.7 billion during January-May 2006 compared to January-May 2005 while US footwear imports (actual data) grew 4.3 percent to 1.1 billion pairs worth $7.5 billion. US apparel imports from Central America and the Dominican Republic continued to decrease (-17.3 percent) during January-May, with its overall share of US apparel imports falling from 18.7 percent to 15.9 percent. Likewise, US fabric exports to the region fell 13.1 percent during January-May 2006 versus January-May 2005. US yarn exports to CAFTA countries, however, recorded substantial growth during January-May 2006 (+28.1 percent). US yarn (+61.1 percent) and fabric (+24.2 percent) exports to China continued to grow briskly, making it the 6th largest export market for US yarn and fabrics. Likewise, US exports of cotton to China surged 267.7 percent to $1.4 billion during January-May 2006 versus January-May 2005, accounting for 55.6 percent of all US cotton exports and more than 1 out of every 3 bales of cotton produced in the United States. US apparel imports from China fell noticeably during January-May 2006 (-12.6 percent to 1.8 billion SME worth US $5.1 billion), a result of the comprehensive quota arrangement implemented at the beginning of the year. These quotas have so far had a negative effect on a broad range of products, particularly cotton trousers, cotton and manmade fiber underwear, manmade fiber socks, and women’s and girls’ cotton and manmade fiber knit shirts and blouses. China has excelled in a number of non-quota products, however, including dresses, cotton skirts, and women’s and girls’ cotton coats and jackets. In any event, China remains the largest apparel supplier to the United States with a 22.0 percent share of total US apparel imports during January-May 2006, down from a share of 24.4 percent during January-May 2005. The quotas placed on China have failed to bring trade back to the Western Hemisphere (as claimed by the quotas’ supporters). Rather, US apparel imports from a large number of other countries (mostly from Asia) grew significantly during January-May 2006, including #3 Bangladesh (+17.9 percent), #5 India (+13.4 percent), #6 Indonesia (+16.8 percent), #7 Vietnam (+24.9 percent), #8 Cambodia (+32.3 percent), #9 Pakistan (+14.5 percent), #12 Philippines (+23.1 percent), #14 Hong Kong (+20.0 percent), #19 Macau (+37.5 percent) and #20 Jordan (+13.3 percent). The impending expiration of current US unilateral trade preference programs and continued uncertainty of passage of recently concluded free trade agreement caused US apparel imports from sub-Sahara Africa (-18.9 percent) and the Andean region (-16.6 percent) to stumble during January-May 2006. Meanwhile, US footwear imports from China advanced 5.1 percent to 929.5 million pairs worth $5.4 billion during January-May 2006. China is by far the largest footwear supplier to the United States with an 85.9 percent share of total US footwear imports during January-May 2006, up from a 85.2 percent share during January-May 2006. US footwear imports from a number of countries grew noticeably during January-May 2006, including #2 Vietnam (+50.4 percent) and #8 India (18.0 percent). As expected, Vietnam has now overtaken Brazil as the second largest footwear supplier to the United States, a position that the South American giant had held for the past decade. US footwear imports from Brazil have fared poorly so far this year, declining 18.9 percent to 35.5 million pairs during January-May 2006. Other countries with sluggish performances during this time included #10 Taiwan (-23.4 percent), #12 Spain (-29.7 percent), #13 Canada (-29.6 percent) and #18 Korea (-52.5 percent).
7.10.06
6.13.06
The Dominican Republic will likely miss a July 1 deadline to join the US/Central America-Dominican Republic Free Trade Agreement (CAFTA), but will likely join by the end of the summer. Guatemala will likely join CAFTA on July 1. Meanwhile, Costa Rica will not likely ratify and implement CAFTA before the end of the year. AAFA continues to work with the Bush administration and Congress to resolve the problems generated by staggered implementation of CAFTA.
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) on June 9 approved a May 2 short supply petition finding that certain yarn dyed woven 100 percent cotton napped fabrics (flannels) of three or four-thread twill classifiable under 5208.43.00 of the Harmonized Tariff Schedule of the United States (HTSUS) are not available in commercial quantities in a timely manner under CAFTA. Meanwhile, CITA requests comments on a June 6 petition alleging that certain woven 100% cotton flannel fabrics in a variety of thread counts, weights and widths, classifiable under HTSUS 5208.52.30, 5208.52.40 and 5209.51.60, is in short supply. Comments are due June 20. If approved, apparel made in a CAFTA country fr, om third-country subject fabric can enter any CAFTA country duty-free.
6.5.06
Over 40 US apparel companies, retailers and trade associations sent a May 31 letter to Deputy US Trade Representative Sue Schwab urging the US government to implement the "cumulation" provisions of the US/Central America/Dominican Republic Free Trade Agreement (CAFTA) by July 1. CAFTA's cumulation provisions allow duty-free access for a limited amount of woven apparel made in the CAFTA region from Mexican and Canadian yarn and fabric. Cumulation is a key step in pr, omoting a competitive industry in the region. The Mexicans are said to be close to reaching the necessary agreements with the US government to implement cumulation. Meanwhile, Guatemala did not join CAFTA on June 1 as hoped due to Guatemala's failure to sign certain international treaties on intellectual property rights (IPR) and delays in signing a deal on pocketing fabrics due to unrelated issues over beer tariffs. Guatemala could still join CAFTA on June 15 or July 1 depending on how quickly these issues are resolved. In a piece of good news, the US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) on May 26 approved the first-ever request under the new, streamlined CAFTA short supply procedures. The decision allows apparel made in CAFTA countries using certain third-country 100 percent cotton napped flannel fabrics to enter the United States or any other CAFTA country duty-free.
5.23.06
Guatemala's Congress approved a package of implementing legislation on May 18 that brings Guatemala into almost full compliance with the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). After Guatemala formally signs a number of required international treaties on intellectual property rights (IPR) this week and after it signs a required reciprocity agreement on the textile and apparel retroactivity provisions in the agreement, Guatemala should meet all of the requirements necessary to implement CAFTA on June 1. There are some questions, however, surrounding the reciprocity agreement. Meanwhile, Nicaragua issued the allocation procedures (procedures & guide) for its Tariff Preference Level (TPL) allocation under CAFTA. The Dominican Republic is still expected to implement the agreement on July 1. Most experts hope that Costa Rica will implement CAFTA, which it has yet to ratify, by the end of the year. AAFA's Nate Herman delivered a speech May 18 at the Apparel Sourcing Show in Guatemala highlighting how the delays in CAFTA implementation and other outstanding issues have impacted apparel and textile trade in the region. The speech also addressed ways the region could work to fix these issues.
Nobel Peace Prize Laureate Oscar Arias formally became president of Costa Rica on May 8. At his inauguration, Arias vowed to push through ratification of the US/Dominican Republic-Central America Free Trade Agreement (CAFTA) as soon as possible. Meanwhile, Guatemala's Congress is expected to vote this week on implementing legislation that will allow the country to join CAFTA on June 1. The Dominican Republic is still expected to join CAFTA on July 1.
5.10.05
AAFA sent a letter May 4 to US Trade Representative (USTR) Designate Susan Schwab congratulating her on her nomination. The letter also urges Schwab to make Congressional passage of a legislative fix to the current co-production problems plaguing the implementation of the US/Central America-Dominican Republic Free Trade Agreement (CAFTA) one of her first priorities as USTR. In related news, the US government's inter-agency Committee, , for the Implementation of Textile Agreements (CITA) requests comments on a May 2 petition from B*W*A alleging that certain yarn dyed woven 100 percent cotton napped fabrics (flannels) of three or four-thread twill classifiable under 5208.43.00 of the Harmonized Tariff Schedule of the United States (HTSUS) are not available in commercial quantities in a timely manner under CAFTA. If approved, apparel made in Central America or the Dominican Republic from subject third-country fabric can enter the United States duty-free under CAFTA. Comments are due May 16. To register for CITA's automatic e-mail short supply notification system, go to CITA's CAFTA Commercial Availability website.
4.18.06
The United States and Peru formally signed a free trade agreement (FTA) on April 12. The US/Peru FTA must now be approved by the respective Congresses of each country. The US Congress will begin consideration of the agreement this summer. AAFA applauds the hard work of the US government in ensuring that the agreement contains immediate and reciprocal duty-free access under very flexible rules of origin for virtually all footwear. AAFA is disappointed, howeve, r, that the FTA's apparel and textile provisions contain a very restrictive yarn-forward rule of origin with only a few very limited exceptions. AAFA is particularly concerned because the US/Peru FTA erases the appropriate balance and flexibilities achieved in the apparel and textile provisions of the previously negotiated US/Central America - Dominican Republic Free Trade Agreement (CAFTA).
4.03.06
Honduras and Nicaragua formally joined El Salva, dor and the United States in the US/Central America-Dominican Republic Free Trade Agreement (CAFTA) on April 1. Meanwhile, El Salvador, Honduras and Nicargua have all reached deals with the United States to implement a last-minute Bush administration deal with certain members of Congress to require that pocket linings be formed and finished in the region for apparel that, includes pockets to qualify under CAFTA. In exchange for agreeing to this rule change, Honduras received assurances that certain men's shirts will become subject to a single transformation rule of origin, El Salvador received assurances that women's and girls' man-made fiber suits (Category 644) and cotton coats (Category 335) as well as infant dresses will become subject to a single transformation rule of origin and Nicaragua received assurances that its Tariff Preference Level (TPL) would be increased for wool sport coats. Except for the Nicaragua TPL change, all CAFTA countries will benefit from the changes agreed to in these deals. All of these changes must still be formally approved by each of the CAFTA member governments and the US Congress. It is unclear at this time when such approval will occur. In a further sign of good news for the region, the US Department of Homeland Security's Bureau of Customs and Border Protection (Customs) announced March 25 that it has designated the Port of Cortes in Honduras a Container Security Initiative (CSI) port. The partnership Customs has formed with the Port of Cortes, the largest port in Central America, under CSI, will enable expedited entry for cargo entering the United States from that port. This designation will hopefully further enhance the competitiveness of the region once CAFTA is fully implemented. Regrettably, a host of co-production and other implementation issues remain unresolved. AAFA continues to work with the Bush administration and Congress to find a resolution to these problems.
3.27.06
Honduras and have completed and implemented the necessary changes in their laws and regulations to join the and in the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). The timing of the two countries joining th, e agreement remain in question, however, as the United States and El Salvador work to resolve a glitch in CAFTA which requires acceding countries to provide 90-days notice before joining the agreement. If this situation is resolved this week, then and will join CAFTA on April 1. If the situation is not resolved in time, implementation for these two countries could be pushed to as late as July 1. continues to work on implementation issues while the remains committed to a July 1 implementation date. 's Congress has yet to pass the agreement. Meanwhile, AAFA continues to work with the Bush administration and Congress to address a multitude of co-production and other implementation issues. Stay tuned for more information.
In March 24 comments submitted to the US government's inter-agency Committee for the Implementation of Textile Agreements (CITA), AAFA complimented CITA on the interim CAFTA short supply regulations issued by CITA as a great step forward in streamlining and bringing greater transparency to the short supply process. AAFA urged CITA, however, to fix specific parts of the interim regulations in order to bring even greater clarity and transparency to the process for all interested parties as well as the general public.
10.20.05
Nicaragua's legislature approved the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) on October 10 by a strong vote of 49-37, overcoming the opposition of Sandinista leader Daniel Ortega and his supporters. Despite this good news, efforts to ensure that CAFTA-DR is implemented as quickly and effectively as possible have stalled over certain implementation issues such as retroactively for apparel and textiles. AAFA continues to lobby the government to make implementation of CAFTA-DR a top priority. AAFA has urged the Bush administration to appoint a high-level CAFTA-DR Implementation Czar to lead these efforts.
8.10.05
On Tuesday, August 2, President George W. Bush signed the U.S./Central - Dominican Republic Free Trade Agreement (CAFTA-DR) before a packed audience of CAFTA-DR supporters at the White House. AAFA members Jack Ouellette and Lance Ruttenberg of American Textile Company, José Pérez-Jones of Seaboard Marine, Ltd., Jerry Cook of Sara Lee Branded Apparel and AAFA Senior Vice President Steve Lamar attended the ceremony. Pérez-Jones is co-chair of the Business Coalition for U.S.-Central America Trade. Earlier this year, Ouellette, who is on the AAFA Board of Directors, testified before the House Ways & Means Committee in support of CAFTA-DR, and Cook testified before the House International Relations Committee. Separately, U.S. Commerce Secretary Carlos M. , Gutierrez announced he will lead a business development mission to Guatemala City, ; San Pedro Sula, and San Salvador, , October 16-22, 2005. The mission will highlight new business opportunities in a number of sectors, including textiles. Companies interested in participating in the mission should contact AAFA's Fawn Evenson at 703.797.9056.
8.03.05
In the early morning hours of July 28, the House of Representatives approved the CAFTA-DR implementing legislation by a vote of 217 to 215. AAFA President Kevin. M. Burke applauded the vote as especially important for this industry. The unusually close vote came after months of intense lobbying, in which many AAFA members and staff were actively engaged. The vote fell mostly on party lines with Republicans supporting the agreement and Democrats opposing it. 15 Democrats voted for the agreement and 27 Republicans voted against it. A detailed list of how your member voted can be found by clicking here. Later that day, as part of a parliamentary procedure, the Senate reconfirmed its earlier approval by a vote of 55 to 45. The legislation now goes to the White House where President Bush will sign it in the East Room ceremony tomorrow morning. Attention now turns to the imp, , lementation procedures and to ens, uring that the remaining CAFTA-DR partners -- the , and -- quickly approve the agreement through their own legislative bodies. Many thanks to all AAFA members who participated in the campaign to win approval of this important agreement.
7.11.05
6.28.05
On June 23, President George W. Bush formally submitted implementing legislation to Congress for the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). According to published reports, both the US House of Representatives and the US Senate could vote on the legislation as early as this week. Under the procedures established by Congress, once Bush formally submits the legislation, Congress must vote up or down on the agreement within 90 legislative days. We need your help NOW! Please click here to tell your members of Congress to vote "YES" on CAFTA-DR.
6.21.05
The House Ways & Means Committee on June 15 approved draft legislation implementing the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) by a vote of 25-16 only a day after the Senate Finance Committee approved similar legislation by a vote of 11-9. AAFA applauded the votes, which were supported by two Democrats in each committee - Senators Blanche Lincoln (D-AR) and Ron Wyden (D-OR) and Congressmen Bill Jefferson (D-LA) and John Tanner (D-TN). The Republicans on each committee, except for Senators Olympia Snowe (R-ME) and Michael Crapo (R-ID) and Congressman Phil English (R-PA), all voted for CAFTA-DR. With these votes and other signs of momentum growing, President George W. Bush is expected to submit the formal CAFTA-DR legislation to Congress this week with Congress expected to vote on the agreement as early as next week. In related news, Representative Sue Myrick (R-NC) on June 14 formally announced her support for CAFTA-DR, joining Senator Elizabeth Dole (R-NC) and other textile state members of Congress in supporting this important agreement. We need your help NOW! To learn how you can support CAFTA-DR, please go to AAFA's CAFTA-DR Website.
6.15.05
US apparel imports (actual data) increased 11.6 percent in the first four months of 2005 compared with the first four months of 2004 to 6.7 billion SME worth $21.0 billion while U.S. footwear imports (actual data) also rose significantly during the same period, growing 7.7 percent to 839.8 million pairs worth $5.6 billion. While US apparel imports from Central America and the Dominican Republic grew (6.4 percent) in the first four months of 2005, its overall share of US apparel imports continued to decline, falling from 19.1 percent to 18.2 percent, dropping the CAFTA-DR countries to second behind China as the largest apparel supplier to the United States. Thanks in large part to the removal of quota restraints on January 1, 2005, US apparel imports from China (+104.5 percent) and numerous other countries grew significantly during the first four months of 2005, including #4 Bangladesh (+18.3 percent), #6 India (+27.7 percent), #7 Indonesia (+13.8 percent), #8 Vietnam (+9.9 percent), #10 Cambodia (+12.7 percent), #11 Thailand (+9.9 percent), #13 Pakistan (+10.4 percent), #15 Sri Lanka (+12.7 percent) and #20 Jordan (+34.8 percent). US footwear imports from a number of countries also grew significantly in the first four months of 2005, including #1 China (+10.8 percent), #3 Vietnam (+43.3 percent), #9 India (+31.7 percent), #12 Dominican Republic (+22.2 percent), #13 Canada (+61.6 percent), #16 Colombia (+115.0 percent) and #17 Romania (+43.6 percent).
Did you hear the good news and bad news about the textile industry and their Caribbean Basin customers? The GOOD NEWS is that our exports to the CAFTA-DR textile and apparel market are way up!! The BAD NEWS is that the Caribbean Basin ’s share of the apparel market is contracting. Without the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), the Caribbean Basin will lack the tools necessary to compete against Asia and others in a post-quota world. So notes the latest release in AAFA’s primers on the truth about CAFTA-DR. The latest trade numbers demonstrate this fact, showing that the CAFTA-DR countries continue to lose ground. CAFTA-DR’s share of the apparel market in the first four months of 2005 slipped to 18.2 percent from 19.1 percent in the first four months of 2004. US yarn and fabric exports to the region, which had grown by double digits in each of the last few years, also slowed dramatically in the first four months of this year, to 5.5 percent for yarn and 3.1 percent for fabrics. This growing realization of the benefits of and the growing need for CAFTA-DR led Congressman John Tanner (D-TN) on June 10 to join a growing list of textile state members of Congress as well as an increasing number of Democrats in announcing his support for the agreement. Citing the broader trade and security benefits to the region as well as to the , former President Jimmy Carter (D) on June 9 also announced his full support for the agreement. President Carter’s support followed closely on the heels of a June 6 announcement by virtually all living former Secretaries of State supporting quick Congressional passage of CAFTA-DR. The agreement now moves to the Senate Finance Committee and the House Ways & Means Committee where the legislation will be considered this week. Once approved by each committee, the agreement will move quickly to a vote by Congress, with votes in the House and Senate expected either shortly before or shortly after the July 4th recess.
6.01.05
On May 25, a broad coalition of business and agricultural organizations, including AAFA and a broad coalition of textile associations, joined together to announce an aggressive campaign for Congressional passage of the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). As part of that campaign, the coalition has begun to dispel the many myths surrounding CAFTA-DR. AAFA President & Chief Executive Officer Kevin M. Burke on May 26 challenged Congressional opponents of CAFTA-DR who were celebrating the one-year delay in passage of the agreement. "I am frankly surprised," stated Burke, "that so many members of Congress would applaud this anniversary. The one-year delay in implementation of CAFTA-DR has led to the loss of 43,000 US textile and apparel jobs." Burke continued, "CAFTA-DR equips Central America and the with the tools it needs to stay competitive in the post-quota world. This region purchased over $4.2 billion worth of US-made yarn and fabric in 2004, making it the fastest growing and second largest market for US manufacturers of yarn and fabric and the hundreds of thousands of US workers who depend on it." Burke noted that, "Congress’ failure to pass this important agreement over the last year, however, has led the region to lose significant market share which, in turn, has hurt the very people these members of Congress claim to be helping. I urge these members of Congress to take the opportunity at today’s press conference to explain to those 43,000 people who have lost their jobs over the last year how Congress’ failure to pass CAFTA-DR has helped them." Others joined Burke in dispelling myths about the agreement. The US government and the business coalition issued detailed analyses demonstrating that CAFTA-DR's labor provisions as well as the labor laws are indeed better than the free trade agreements with Jordan or Morocco as well as the current trade preference program with the region, all three of which many Congressional opponents of CAFTA-DR voted for. Supporters also dispelled the myths that CAFTA-DR would increase the trade deficit, noting that an independent study found that CAFTA-DR would actually reduce the trade deficit. Finally, USA Today, in a May 26 editorial, dispelled the many, many myths about CAFTA-DR and sugar, noting that the sugar industry is working to bring down an agreement that not only does little or no harm to sugar growers, but actually helps virtually all other agricultural sectors. Please go to AAFA's CAFTA-DR Information Center to learn the truth about CAFTA-DR as well as HOW YOU CAN HELP ensure quick Congressional passage of CAFTA-DR.
5.23.05
On May 18, AAFA President & CEO Kevin M. Burke and twenty-five members of the business coalition supporting the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) had the honor of meeting with President George W. Bush. Joining the President were Secretary of Commerce Carlos Gutierrez, US Trade Representative Rob Portman, Deputy Chief of Staff Karl Rove, National Security Advisor Steve Hadley and the entire White House Legislative Affairs staff. Ambassador Portman ran the meeting, and thanked the coalition for its work to date on CAFTA-DR. The President’s message was quite direct. He wants CAFTA-DR passed by the Congress before the July 4th Congressional recess period. He was passionate about the need to maintain a strong economic presence in Central America and to support American companies who wish to remain trading partners in this region. It now appears that the White House will be putting its considerable weight into passing this measure. This is just what the doctor ordered. Following this good news, on May 19, a broad coalition of textile organizations, including the National Council of Textile Organizations (NCTO), the National Cotton Council (NCC), the American Fiber Manufacturers Association (AFMA), the American Textile Machinery Association (ATMA), the Carpet and Rug Institute (CRI) and the Association of the Nonwoven Fabrics Industry (INDA) announced their strong support for CAFTA. Meanwhile, AAFA applauds the recent announcements of support by Representatives Norm Dicks (D-WA) and Jim Moran (D-VA) as they joined a fast-growing list of Congressional and other prominent Democrats in endorsing CAFTA-DR. Finally, the Business Coalition for US-Central America Trade issued a detailed analysis shedding much needed light on the truth about CAFTA-DR's labor provisions. The analysis definitively demonstrates that the labor provisions in CAFTA-DR far surpass those in current trade preference programs. This analysis directly refutes claims by many CAFTA-DR opponents that CAFTA-DR weakens the labor provisions already in place for the region under current trade preference programs. Instead, it clearly demonstrates the CAFTA-DR will do more than any other existing or previous free trade agreement or preference program to promote labor rights in the region. We Need Your Help Now! Every member of Congress Burke and AAFA has met say they need to hear from their constituents NOW! Please go to AAFA's CAFTA-DR Information Center to learn more about how YOU CAN HELP ensure quick Congressional passage of CAFTA-DR.
5.18.05
On May 5 and May 9, respectively, the National Council of Textile Organizations (NCTO) and the National Cotton Council (NCC) announced their full support for the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). Those announcements added two key groups to a growing list of supporters for the agreement. On April 20, a list of over 20 former prominent Democratic government officials sent an open letter to Congressional Democrats strongly backing CAFTA-DR. Further, a major Hispanic organization, the Hispanic Alliance for Progress Institute, on May 6 launched a grassroots campaign urging Congressional passage of CAFTA-DR. Finally, the governor of Puerto Rico, Anibal Acevedo-Vila, sent an April 5 letter to every member of the Congressional Hispanic Caucus stating that CAFTA-DR is good for Puerto Rico and good for Hispanics everywhere. Reiterating the importance of CAFTA-DR to Central America and the , the World Bank released a new study May 12 that found that CAFTA-DR offers significant opportunities for increasing trade and investment that will boost long-term growth and reduce poverty in the region. To keep up on the latest CAFTA-DR news, learn the real facts about CAFTA-DR and/or learn how you can help pass CAFTA-DR, please go to AAFA's CAFTA-DR Website.
US apparel imports (actual data) increased 12.3 percent in the first quarter of 2005 compared with the first quarter of 2004 to 5.1 billion SME worth $16.3 billion while U.S. footwear imports (actual data) also rose significantly during the same period, growing 7.4 percent to 624.3 million pairs worth $4.3 billion. While US apparel imports from Central America and the Dominican Republic grew (7.8 percent) in the first quarter of 2005, its overall share of US apparel imports continued to decline, falling from 18.9 percent to 18.1 percent, dropping the CAFTA-DR countries to second behind China as the largest apparel supplier to the United States. Thanks in large part to the removal of quota restraints on January 1, 2005, US apparel imports from China (+102.2 percent) and numerous other countries grew significantly during the first quarter of 2005, including #4 Bangladesh (+9.8 percent), #5 India (+18.5 percent), #6 Indonesia (+11.8 percent), #8 Vietnam (+14.9 percent), #10 Cambodia (+11.4 percent), #11 Thailand (+12.8 percent), #13 Pakistan (+13.3 percent), #15 Sri Lanka (+15.2 percent) and #20 Jordan (+35.9 percent). US footwear imports from a number of other countries grew significantly in the first quarter of 2005, including #1 China (+9.9 percent), #3 Vietnam (+42.8 percent), #9 India (+33.5 percent), #12 Dominican Republic (+9.6 percent), #13 Canada (+61.3 percent), #16 Colombia (+234.8 percent) and #17 Romania (+46.0 percent).
5.11.05
Last week, President Bush announced that the six Presidents of Central America and the will visit Washington and other cities to help promote passage of the U.S./Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). Separately, Representative Sandy Levin (D-MI) released a series of deeply flawed reports of labor practices in the CAFTA-DR countries that had been prepared for the International Labor Affairs Bureau by the International Labor Rights Fund (ILRF). The Department of Labor had initially withheld the reports over real concerns that the reports were unprofessional, biased and incomplete. They were ultimately released to Mr. Levin after he threatened Congressional action to force their release. On Wednesday, May 4, a group of House Democrats – nearly all of whom say they are pro-trade but who have been voting against trade bills recently – announced their opposition to CAFTA-DR. On Thursday, Senator Elizabeth Dole (R-NC) released a letter from US Trade Representative Rob Portman committing to seek a post ratification amendment to CAFTA-DR that will require pockets to originate in the or the region. Such a move would require a consultation among all affected groups and a consensus of the CAFTA-DR parties.
5.03.05
During last week's prime time nationally televised press conference, President Bush reiterated his call for swift enactment of the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). In response to a question on the economy, Bush noted, "We need to continue to open up markets for US products. As you know, there'll be a vote for the Central American Free Trade Agreement here, hopefully soon. I'm a strong believer that it's in the interest of American job creators and workers that we open up those markets. I know it's important geopolitically to say to those Central American countries, 'You've got a friend in .' " For more information on how you can help lobby Congress to seek swift enactment of this important agreement, visit the redesigned CAFTA-DR tool kit on the AAFA website.
4.25.05
On April 18, Representative William Jefferson (D-LA) joined a growing number of other prominent Congressional Democrats in announcing his support for the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). Meanwhile, Jack Ouellette of AAFA-member American Textiles testified at an April 21 CAFTA-DR Hearing before the House Ways & Means Committee. Ouellette told the members of the committee that CAFTA-DR is critical for the future of the region's textile and apparel industries. Ouellette noted that many textile firms are now supporting CAFTA-DR, realizing that CAFTA-DR is also the key to their future, because, without a competitive Central America , their main export market will dry up and disappear. AAFA has issued a number of one-pagers and primers over the last week spelling out why CAFTA-DR is so critical for US textile manufacturers and Central American apparel manufacturers alike and de-bunking the many myths surrounding CAFTA-DR. You can access this information as well as the latest news on CAFTA-DR on AAFA's CAFTA-DR website.
4.19.05
Over 40 representatives of US textile manufacturers, apparel companies and retailers descended on Washington, DC on April 13 for an AAFA and National Retail Federation (NRF)-sponsored lobbying blitz pushing for quick Congressional passage of the US/Central America-Dominican Republic Free Trade Agreement (CAFTA). In meetings with dozens of lawmakers, the group emphasized that CAFTA is critical for keeping the region, the textile industry's fastest growing export market, competitive in a post-quota world. That same day, Keith Crisco from AAFA member Asheboro Elastics and Jerry Cook from AAFA member Sara Lee Branded Apparel both testified on CAFTA at hearings before Congressional Committees. Both effectively delivered the message to Congress that we need CAFTA now. During an April 14 Congressional hearing on China, Alex Gregory of AAFA member YKK America testified delivered the same message, noting that the key to the US textile industry's ability to compete against China is to improve the competitiveness of Central American and the Dominican Republic, its most important customer, through quick Congressional passage of CAFTA. That same day over 45 textile, apparel and footwear executives sent a letter to President Bush and Congress also urging quick Congressional passage of CAFTA. The lobbying blitz follows the April 11 release of a survey of apparel and retail sourcing executives that found that while half the respondents (51 percent) plan to increase sourcing in the region if CAFTA passes Congress in the next 6 months, over half of the respondents (56 percent) said they would decrease their sourcing in the region if Congress does NOT pass CAFTA soon. Underscoring the urgency of the situation, the preliminary first quarter import numbers released April 1 by the US Department of Commerce show that the CAFTA region lost significant market share in virtually every major category in the first quarter of 2005.
4.12.05
The Trade & Labor Ministers from all of the countries involved in the US/Dominican Republic-Central America Free Trade Agreement (CAFTA) appeared together in Washington, DC on April 5 to announce the release of an action plan to improve labor law enforcement in their countries. Members of Congress and others praised the labor action plan as a demonstration of the countries' commitment to improving labor rights. Already, a number of organizations, including the government and the Inter-American Development Bank (IDB) have committed financial assistance to aid countries in implementing the action plan. The Ministers noted that the labor action plan, as well as the great strides each country has made in improving working conditions in the last few years, have only occurred because of CAFTA. Many noted that these and future efforts would never have happened without CAFTA. Meanwhile, AAFA, in conjunction with the National Retail Federation, released a survey of major apparel brands and retailers on April 11 that found that 51 percent of respondents plan to increase their business in the region if CAFTA is approved by Congress soon while over 56 percent plan to scale back their sourcing in the region if CAFTA is rejected. Moreover, none of the respondents plan to increase business if CAFTA-DR is rejected and none plan to decrease business if CAFTA-DR is approved. Showing growing support for CAFTA, more the 100 members of the Board of Directors of the National Association of Manufacturers (NAM), the national association representing US manufacturers, sent a letter to Congress on April 5 urging quick passage of CAFTA. The signers included both large and small manufacturing companies from all sectors of industry and regions of the country, and reflects strong consensus among US manufacturing leaders that passage of this agreement is in the best interests of the . Just the next day, 66 members of the AAFA-supported Comprehensive Market Access Coalition, a diverse alliance of business and agriculture that supports the principle that no products or sectors should be excluded from trade negotiations, sent a letter to President George W. Bush also calling for quick passage and implementation of CAFTA. A new study by NAM released April 7 confirmed the reasons behind this growing support for the agreement, finding that CAFTA is "unambiguously a winner" for US manufacturing.
4.06.05
AAFA announced that it will bring apparel, textile and footwear executives from around the country to Washington, DC on Wednesday, April 13 to lobby Congress in support of the US/Dominican Republic-Central America Free Trade Agreement (CAFTA). It is not too late to join us. If you are interested in participating in the AAFA CAFTA Lobby Day, please contact Steve Lamar at 703.797.9041. The April 13 AAFA CAFTA Lobby Day marks the beginning of the campaign for Congressional approval of CAFTA. The Senate Finance Committee (April 13) and the House Ways & Means Committee (April 21) have announced hearings on CAFTA. The hearings formally start Congressional consideration of the agreement, which could culminate in approval of the CAFTA around Memorial Day. Exhibiting increasing support for the agreement, 50 new local, state and national Hispanic organizations have recently joined the Hispanic Alliance for Free Trade (HAFT) in supporting CAFTA, bringing HAFT's total membership to over 90 Hispanic and other organizations from all over the . Meanwhile, in a primer appropriately titled Tempest in a Teaspoon, the Business Coalition for US-Central America Trade points out that not only is US sugar's opposition to CAFTA unfounded and baseless, but that the protections afforded US sugar has cost tens of thousands of US jobs in the US food manufacturing industry and cost US consumers almost $2 billion a year.
3.22.05
The Senate Finance Committee announced that it will hold a hearing April 6 on the proposed US/Dominican Republic-Central America Free Trade Agreement (CAFTA). The House Ways & Means Committee is expected to hold hearings in early April as well, starting Congressional consideration of the agreement that will culminate in a Congressional vote on CAFTA sometime around Memorial Day.
3.16.05
By a vote of 126-12 in its Congress, became the third country (after and ) to approve the US/Dominican Republic-Central America Free Trade Agreement (CAFTA) on March 10 (AAFA Press Release). also approved legislation that brought its data privacy protection laws into line with its CAFTA obligations, paving the way for the US Congress to begin consideration of the agreement as early as the beginning of April. Meanwhile, the latest trade numbers, released March 11, show that the delays in the implementation of CAFTA continue to cause the region to lose market share in the apparel market (See AAFA Press Release). This decline has already caused 19,000 job losses in the since November 2004 and a slo wd own in yarn and fabric exports to the region. In a positive sign for passage of CAFTA, however, the Hispanic Alliance for Trade, comprising dozens of local and national Hispanic groups and other organizations that support CAFTA, announced March 10 that it will launch a new grassroots campaign to ensure Congressional passage of CAFTA. Demonstrating yet again how the constraints of the current trade preference program for the region, the Caribbean Basin Trade Partnership Act (CBTPA), limit the region's competitiveness, the US interagency Committee for the Implementation of Textile Agreements (CITA) rejected yet another CBTPA short supply request on March 7, this one involving certain anti-microbial elastomeric filament yarn. The CBTPA short supply process was originally intended to provide needed flexibility in CBTPA rules when certain yarns and fabrics were no longer commercially available in a timely manner in the . Despite this fact, CITA has rejected 27 out of 45 or 60 percent of all CBTPA short supply requests.
3.09.05
Honduras, in a 100 to 28 vote, overwhelming approved the US/Dominican Republic-Central America Free Trade Agreement (CAFTA) on March 3, joining as only the second of the seven CAFTA countries to do so. In a related note, http://www.AmericansForFairTrade.org, a small anti-CAFTA group comprised mostly of farmer's unions and sugar growers, released a deeply flawed and biased poll on March 1 that purportedly found that 51 percent of Americans oppose CAFTA. This number was arrived at only after the poll asked those surveyed to respond to misleading questions and, in many cases, incorrect descriptions on the impact of CAFTA. Before even asking those surveyed their opinions on CAFTA, the survey asked two questions implying that the North American Free Trade Agreement (NAFTA) had a negative impact on the and then equated NAFTA to CAFTA. Those questions were then followed by such questions as "Would you favor or oppose CAFTA if it reduces prices you pay as a consumer but eliminates jobs for US workers?" Despite the bias in the poll, the poll found that 50 percent of all Americans and 55 percent of all American Hispanics support free trade agreements in general. Further, a plurality of American Hispanics surveyed supported the agreement (44 percent vs. 39 percent). Only after a list of misleading and inaccurate statements were read to those surveyed did that number change, with 47 percent of surveyed Hispanics opposing CAFTA and 40 percent supporting the agreement.
2.15.05
In a report released February 8, the Heritage Foundation, a leading conservative think tank, urges Congress to support quick passage of the US/Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). Among other reasons to support passage, the report finds that numerous economic studies show that the single greatest cause of environmental degradation and low labor standards is poverty. Wealthier societies are more likely to demand and implement greater environmental and labor protections because they can better afford the costs of those policies. Those studies also show that the desire for such protection increases as income grows. Economic liberalization, therefore, is the most effective means of increasing environmental and labor standards because countries that embrace economic freedom — including free trade— experience stronger economic growth than those that seek to thwart the market through barriers to investment and trade. In the case of DR-CAFTA, the agreement actually contains provisions on labor and the environment that are virtually identical to those contained in the Jordan and Morocco free trade agreements, which essentially require America’s trade partners to enforce their existing labor and environmental laws. If anything, DR–CAFTA's provisions in these areas actually exceed those in previous agreements. Yet Congress approved the and agreements by large bipartisan margins. As a result, if Congress rejected DR–CAFTA under the premise of rejecting these provisions as inadequate, it would instead signal a larger rejection of closer ties with the region. To learn more about what you can do to support quick Congressional passage of DR-CAFTA as well as find information on how DR-CAFTA will benefit the US economy, primers on the benefits of DR-CAFTA state by state and sector by sector, and one-pagers on the true impact of DR-CAFTA on labor rights in Central America and sugar interests in the United States, please go to the Office of the US Trade Representative's (USTR) just released DR-CAFTA Briefing Book.
2.08.05
While 52 agricultural groups representing virtually every other sector of US agriculture signed onto a February 1 letter sent to every member of Congress urging Congress to pass the US/Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) as soon as possible, the National Cotton Council of America issued a January 31 press release announcing that "We believe there are opportunities to work with the Administration to improve the competitive situation confronting the US cotton and textile industries without a re-negotiation of the current CAFTA. We look forward to working with the National Council of Textile Organizations and the Administration both in developing a sound implementation plan for (DR-)CAFTA and in taking other steps that will improve the competitive situation confronting the cotton textile industry." Meanwhile, 19 trade associations representing the high-technology industry added their voice to the over 250 other businesses and organizations supporting DR-CAFTA by sending a January 26 letter to Congress also urging quick passage of the agreement. To learn more about what you can do to support quick Congressional passage of DR-CAFTA as well as find information on how DR-CAFTA will benefit the US economy, primers on the benefits of DR-CAFTA state by state and sector by sector and one-pagers on the true impact of DR-CAFTA on labor rights in Central America and sugar interests in the United States, please go to the AAFA-supported |
