The Latest Trade News

Note: Please go to AAFA's "Industry Social Responsibility" Web Page for the latest information on Corporate Social Responsibility issues affecting the apparel and footwear industries.

Trade News Archive - 2007
Trade News Archive - 2006

12.23.08
President-elect Barack Obama on December 19 nominated former Dallas Mayor Ron Kirk to become the next US Trade Representative. Prior to being Mayor of Dallas, Kirk, an avowed free-trader, served on the staff of former Senator Lloyd Bentsen (D-TX) when Bentsen was Chair of the Senate Finance Committee, the committee that has jurisdiction over trade issues.

12.23.08
The US Department of Agriculture December 12 that textile mills are now eligible for capital improvement funds through the Economic Adjustment Assistance (EAA) Program authorized by the Food, Conservation, and Energy Act of 2008, aka the Farm Bill of 2008. Through the program, USDA can provide assistance to US textile manufacturers that invest an equivalent amount of funds in capital improvements to their operations by acquiring, constructing, installing, modernizing, developing, converting or expanding land, plant, buildings, equipment, facilities or machinery. Payments under the program are based on the amount of cotton (domestic or foreign) consumed by the textile manufacturer after August 1, 2008.

12.16.08
The European Commission December 11 that the current double checking surveillance system on certain European apparel imports from China will expire on December 31, as scheduled. To date, there have been no indications from the European Commission that they plan to impose any new restrictions on European imports of apparel from China.

12.02.08
On November 25, President George W. Bush the designation of Bolivia as a beneficiary country under the Andean Trade Promotion and Drug Eradication Act (ATPDEA). The suspension, which takes effect on December 15, is the result of Bolivia's failure to cooperate with the United States on counternarcotics efforts.

12.02.08
President George W. Bush a proclamation November 25 implementing the so-called "DR 2:1" program. 2:1 allows for the duty-free entry of US imports of pants from the Dominican Republic made from third-country denim as long as they meet the specifications outlined under the program.

11.24.08
The US Department of Agriculture's Agricultural Marketing Service (AMS) November 19 that it has raised the so-called "cotton fee" for US imports of cotton and cotton-containing products (i.e. cotton apparel) that are used to fund the Cotton Research and Promotion Program.

11.24.08
The US Department of Commerce announced November 21 that, after reviewing the third set of six month data from the monitoring program of apparel imports from , there is insufficient evidence to warrant self-initiating an antidumping investigation. This is the final review of apparel imports from under the monitoring program. The monitoring program will formally end as scheduled on January 20, 2009.

11.17.08
Argentina has announced that, effective November 12, importers of most footwear, apparel and textiles into must now obtain a "non-automatic" import license. has also raised its tariff on Argentine imports of footwear and apparel from 20 percent to 35 percent.

10.20.08
The World Trade Organization (WTO) announced October 17 the publication of the 2008 edition of World Tariff Profiles, which details the tariff rates for all 153 WTO member countries.

10.14.08
The US Department of Commerce’s Office of Textiles and Apparel (OTEXA) has created an online system for US companies utilizing the Earned Import Allowance program under the Haiti HOPE II trade preference program. HOPE II allows US imports of certain apparel from Haiti to enter the United States duty-free as long as they meet specific rules of origin.

10.14.08
Canada’s Department of Finance announced October 8 the implementation of a new outward processing program to encourage the use of Canadian textiles in the manufacture of apparel in developing countries. Under the program, textiles produced in Canada would be exported to a developing country or territory eligible for Canada’s General Preferential Tariff (GPT) treatment (which includes major apparel producers like China, India, Indonesia, Pakistan and Vietnam) and incorporated there into apparel that would then be imported back into Canada duty-free as long as the apparel meets the rules of origin under the outward processing program.

10.06.08
US Customs and Border Protection (CBP) on September 30 announced the final rule implementing the duty-free provisions of the Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE 1) Act.

09.15.08
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) announced September 15 new interim procedures for administering the “3 for 1” earned import allowance program for US imports for apparel from Haiti under the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II). Under the program, for every three square meters of eligible woven or knit fabric made in the United States that is exported to Haiti for the production of apparel, one square meter of woven or knit apparel that is completely assembled in Haiti may enter the United States free of duty regardless of the origin of the fabrics, fabric components, components knit-to-shape or yarns from which the apparel is made, creating the term “3 for 1”. There will be certificates issued to qualifying apparel producers by OTEXA that will accompany product when it enters the United States.

09.08.08
Congress returns from its August recess this month for a three week legislative session. Congress may return again in December for a “lame duck” session following the November 4 legislative and presidential elections. Pending before the Senate will be a recently passed House bill that renews the Generalized System of Preferences (GSP) for an additional year, enhances the ability to use third country fabric in the African Growth and Opportunity Act (AGOA) and enacts a new earned import allowance program for the Dominican Republic. Other trade measures – including a miscellaneous tariff bill, the Affordable Footwear Act, a renewal of Andean trade programs, and Customs authorization legislation – may see action as well. Further action on three pending FTAs with Colombia, Panama, and Korea is likely to be delayed until 2009.

08.11.08
US Senators Ken Salazar (D-CO) and Mike Crapo (R-ID) introduced the Recreational Performance Outerwear Apparel Act of 2008 (HR 6483/S 3439) in the Senate right before Congress left for its August recess. The bill, developed in close cooperation with the Outdoor Industries Association (OIA), is the Senate companion to the House version of the legislation introduced in July by Congressman Earl Blumenauer (D-OR). The AAFA-supported legislation would make US imports of specific types of recreational performance outerwear duty-free while providing new funding for research into new US technologies and jobs that focus on sustainable, environmentally-conscious manufacturing and streamlined supply chains.

08.11.08
The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) requests comments on a proposal from the Government of Australia to change the rules of origin under the US/Australia Free Trade Agreement (FTA) for all yarns under subheading 5510.90 of the Harmonized Tariff Schedule of the United States (HTSUS) to allow for the use of non-US and non-Australian viscose rayon fiber. If approved, apparel made in the United States or Australia using the subject yarn made from third-country viscose rayon fiber would be able to enter the United States or Australia duty-free under the FTA. Comments are due September 5.

07.28.08
The US Department of Agriculture’s Agricultural Marketing Service (AMS) seeks comments on a proposed rule by September 22 that would increase the assessment paid by US importers of cotton and cotton containing product under the Cotton Research and Promotion Order.

07.21.08
On July 15, AAFA joined with the National Retail Federation (NRF), Retail Industry Leaders Association (RILA) and the United States Association of Importers of Textiles and Apparel (USA-ITA) in sending a series of letters to Congressional leaders opposing the inclusion of Chinese and Vietnamese apparel import monitoring language in the House Appropriations Committee report accompanying the Commerce, Justice and Science Appropriations bill. The letters emphasize that this special apparel monitoring program unfairly singles out a specific sector and is unnecessary considering the Department of Commerce’s International Trade Administration (ITA) already funds a program to assist potential trade remedy petitioners as well as the results on the current Vietnam monitoring program. AAFA is working hard to ensure this language is not included in the final version of the appropriations legislation.

07.21.08
On July 15, AAFA submitted comments to the Office of the United States Trade Representative (USTR) regarding the issue of “zeroing.” The practice of zeroing artificially inflates dumping margins and thus unfairly inflates dumping duties. The World Trade Organization (WTO) has already ruled that this practice violates international trade law, and Japan is now suing through the US Court of International Trade to bring the United States into compliance. In the letter, AAFA reiterates its belief that the United States should fully comply with the WTO ruling and eliminate the arbitrarily and patently unfair practice of zeroing.

07.14.08
The US Department of Commerce on July 10 issued the final rules governing the determination of the size and allocation of the tariff-rate quota regarding US imports of certain shirting fabrics.

07.07.08
Duty-free treatment under the Generalized System of Preferences (GSP) will continue for almost all goods currently covered under the program, based on the result of the 2007 review conducted by the Office of the US Trade Representative (USTR). GSP allows products from developing countries to enter the US market duty-free, under certain restrictions. Currently, apparel and footwear are not eligible for GSP benefits. Further, the program is due to expire at the end of this year, at which time it will need to be renewed by Congress. USTR is currently considering extending the program to Vietnam, a move which AAFA supports and on which AAFA urges interested companies to submit comments.

06.30.08
AAFA joined with a production chain coalition in a letter to the Chair and Ranking Member of the Senate Finance and House Ways and Means Committee urging swift passage of the Earned Import Allowance Pilot Program. If passed, the program would require Dominican apparel manufacturers to purchase two square meter equivalents (SME) of U.S. fabric for each SME of third party fabric used in production of U.S.-bound trousers. In exchange, these trousers would then enter U.S. duty free. The 2:1 program is designed to fulfill the United States commitment to bolstering the Dominican trouser industry, which will be adversely effected by the August 15 implementation of the pocketing amendment. Lauded as a non-controversial win-win program, the letter demonstrates the benefits of the program for the entire production chain as demonstrated by the signatories including the National Coalition of Textile Organizations (NCTO), The Dominican Association of Free Zones (ADOZONA), Levi Strauss & Co., Swift Galey, Inc. and Gap, Inc.

06.30.08
On June 18, the World Economic Forum (WEF) issued the Global Enabling Trade Report measuring the performance of 118 economies worldwide on facilitating the free flow of goods. Hong Kong, Singapore and Sweden occupy the top three spots on how nations are performing in four key areas -- market access, border administration, transport and communications infrastructure and business environment. Despite a third worldwide ranking on transportation infrastructure, the U.S. is ranked 14th overall, suffering from low rankings on border administration (42nd) and the high cost of import (65th). Additionally, most apparel and footwear exporting nations were ranked far down on the rankings. The world's biggest apparel and footwear exporter, China, is positioned 48th, while India is 71st, Pakistan is 84th and Vietnam is 91st.

06.30.08
The Republic of Cape Verde will officially become a member of the World Trade Organization (WTO) on July 23. Cape Verde will become the 153rd member of the WTO.

06.23.08
The US government’s inter-agency Committee for the Implementation of Textile Agreements (CITA) last week published a notice on its website announcing that CITA was reducing the 2008 TPL for Nicaragua to 87,897,046 square meters equivalent (SMEs) since Nicaragua had allegedly failed to meet its one-to-one commitment for cotton and manmade fiber woven trousers Nicaragua exports to the United States. Then, the next day, CITA promptly removed the document. According to statements published in the press, CITA claimed the document was posted in error. CITA has not yet made a decision regarding the 2008 TPL level. CITA instead will now make a final decision by the end of June.

06.19.08
The US International Trade Commission (ITC) released its report June 13 on the effects of the HOPE Act on Haiti and the US economy. In the Congressionally-mandated report, the ITC found that, despite the challenges facing the Haitian apparel industry, Haitian exports of apparel to the United States rose during 2005-2007. The new preferences have had little, if any, effect on the US apparel and textile industries. While apparel imports from Haiti make up less than one percent of total apparel imports by the United States, over 90 percent of Haiti's apparel exports are shipped to the United States. The Haitian apparel industry, employing between 15,000 and 18,000 Haitian workers, appears to have benefited significantly from US trade preferences under HOPE Act.

06.19.08
On June 11, the Court of International Trade heard preliminary arguments in the first of dozens of lawsuits that could lead to the refund of duties paid on certain apparel and footwear items. The cases claim that products of the same description (e.g., gloves, pants or shoes) cannot lawfully be subject to different rates of duty based on whether they are for men or women (gender-based) or adults or children (age-based). In the first case, Totes-Isotoner claims that these different duty-rates on gloves are a discriminatory scheme that violates the constitutional right of importers to equal protection. A decision is expected this fall. AAFA will continue to monitor this important case.

06.16.08
On June 11, the Court of International Trade heard preliminary arguments in the first of dozens of lawsuits that could lead to the refund of duties paid on certain apparel and footwear items. The cases claim that products of the same description (e.g., gloves, pants or shoes) cannot lawfully be subject to different rates of duty based on whether they are for men or women (gender-based) or adults or children (age-based). In the first case, Totes-Isotoner claims that these different duty-rates on gloves are a discriminatory scheme that violates the constitutional right of importers to equal protection. A decision is expected this fall. AAFA will continue to monitor this important case.

06.09.08
The US Senate failed to limit debate on controversial climate change legislation (S. 3036) on June 6 when, by a vote of 48-36, it failed to invoke cloture on the legislation (60 votes are needed in the Senate to limit debate.) The failure to invoke cloture could doom the bill for this year since there is now no way to limit debate and bring the bill to a vote. The legislation, an updated version of a climate change bill originally introduced by Senators Joseph Lieberman (I-CT) and John Warner (R-VA), calls for mandatory cuts in US greenhouse gas emissions of nearly 70 percent over the next 40 years. Although the legislation is strongly supported by several key Democrats and Republicans, it has also provoked considerable concerns from all sides of the political spectrum. One concern is a controversial international emissions trading system that would be imposed by the United States on importers. This system – contained in Title VI of the bill – would require importers, by 2020, to declare upon importation that they have purchased sufficient emissions credits or that they are exempt from this requirement. Such a system could violate US obligations under the World Trade Organization (WTO) or lead to penalties against US exports.

06.09.08
On June 3, the US Department of Commerce Office of Textiles and Apparel (OTEXA) launched a website on US financing programs available for textiles and apparel. The website highlights some US Government financing programs available to US companies. The financing programs include export insurance, working capital guarantees and other programs. AAFA has long advocated that Commerce play a more active role in providing information on how US textile and apparel companies can gain access to these long-established programs.

06.09.08
On June 2, the World Trade Organization’s (WTO) Dispute Settlement Body (DSB) ruled largely against the United States in its dispute with Brazil over US cotton subsidies. The ruling paved the way for possible implementation of retaliatory tariffs by Brazil against Brazilian imports of US-made products. The dispute began in 2002 and culminated with the release of the report by the Appellate Body, whose findings and conclusions recommended that the DSB request that the United States bring its measures “into conformity with its obligations” under the WTO.

06.02.08
The US Senate will take up comprehensive climate change legislation (S. 3036) when it returns from its Memorial Day recess this week. The legislation, an updated version of a climate change bill originally introduced by Senators Joseph Lieberman (I-CT) and John Warner (R-VA.), calls for mandatory cuts in US greenhouse gas emissions of nearly 70 percent over the next 40 years. Although the legislation is strongly supported by several key Democrats and Republicans, it has also provoked considerable concerns from all sides of the political spectrum. One concern is a controversial international emissions trading system that would be imposed by the United States on importers. This system – contained in Title VI of the bill – would require importers, by 2020, to declare upon importation that they have purchased sufficient emissions credits or that they are exempt from this requirement. Such a system could violate US obligations under the World Trade Organization (WTO) or lead to penalties against US exports. A House counterpart is expected to be released this week as well. However, the complicated nature of the legislation and the tight Congressional calendar may make Congressional action unlikely this year.

06.02.08
As expected, pre-registration of chemicals under the new European Chemical registration scheme – known by its acronym REACH – began on June 1, 2008. Pre-registration will last until December 1, 2008 and is required for all European entities that sell or import or distribute chemicals – in an amount exceeding 1 million tons per year. The requirement also applies to chemicals in articles (such as dyes in clothing) if the chemical is intended to be released AND if the amount of the chemical in the clothing exceeds 1 million tons per year. To aid in these new requirements, the European Chemicals Agency has finalized and released its long awaited REACH Guidance on Articles on May 26. The ECHA has also revised the REACH Guidance on Registration.

05.27.08
The International Standards Organization (ISO) published a new standard (9073-17:2008) that specifies a test method for nonwoven fabric that is used to determine the water penetration and spray impact. The publication can be purchased directly through the ISO website.

5.19.08
On May 2, Oxford Industries, Inc. submitted a claim that woven jacquard acetate rayon fabrics (classified under the Harmonized Tariff Schedule of the United States (HTSUS) as 5408.23.2930) cannot be supplied by the domestic industry in a timely manner under the North America Free Trade Agreement (NAFTA). The petitioner requested a reevaluation of the NAFTA rule of origin to allow the use of non-North American woven jacquard acetate rayon fabric in men’s apparel production. On May 9, the Committee for the Implementation of Textile Agreements (CITA) issued a request for comments on the issue. Comments must be submitted by June 2.

5.19.08
Last week, both chambers of Congress approved by overwhelming majorities an extension of key Caribbean Basin trade provisions and a statement in support of the First Sale rule as part of a multi-billion dollar bill reauthorizing farm programs. Although President Bush has threatened to veto the popular farm bill - because of his disagreements with Congress over agricultural policies - conventional wisdom holds that Congress will override the President’s veto.
Included in the bill is a 2-year extension of the Caribbean Basin Trade Partnership Act and a 10-year extension and expansion of the Haiti (HOPE) trade bill. At the last minute Congress included a provision to delay and obstruct efforts by US Customs and Border Protection (CBP) to revoke the First Sale valuation rule. AAFA issued a Key Vote letter in support of the bill because of these trade provisions. Unfortunately, a provision that would have promoted partnerships with trouser producers in the Dominican Republic was left off the Farm Bill at the last minute. AAFA will work toward passage of that measure as soon as possible.

01.07.08
The ISO 9073-16:2007, test methods for nonwoven textiles with regards to determination of resistance to penetration by water standard, is now available. All International Standards Organization (ISO) standards can be found at the American National Standards Institute (ANSI) website.

01.07.08
Congress adjourned for the year December 19 after approving an Omnibus appropriations bill that, among its thousands of provisions, cut-off funding for a pilot program allowing long-haul Mexican trucks to operate across the United States. Cross-border trucking between Mexico and the United States, a NAFTA-related commitment, has been delayed for years by legal challenges, safety concerns and opposition from the Teamsters Union. Despite this opposition, the Bush Administration had moved to implement this program, allowing as many as a hundred Mexican trucking carriers, as long as they meet US safety standards, to send trucks throughout the United States. To date, the US Department of Transportation had cleared 55 trucks from 10 different Mexican trucking companies to make long-haul deliveries in the United States.

Despite Congress’ decision to cut off funding for this project, the Federal Motor Carrier Safety Administration (FMCSA) has vowed to continue the project because it claims that the specific language included in the legislation only prevents the Administration from establishing a new truck program with Mexico and does not preclude it from continuing the existing project. It is very possible that the FMCSA’s decision could be challenged in court by parties opposed to the program.

On January 4, Senator Byron Dorgan (D-ND), who authored the provision restricting funding for the program, has called the Administration’s desire to move forward, “both arrogant and wrong” and may try to further fight the Administration legislatively.

01.07.08
Despite numerous efforts to temporarily extend it, Congress allowed the current Trade Adjustment Assistance (TAA) Act program to expire at the end of last year amid partisan wrangling about the future of the program. Congress is expected to temporarily renew the program, possibly as early as this month, to allow Congress more time to discuss and enact major reforms to TAA.

01.07.08
AAFA submitted comments December 21 to the Office of the US Trade Representative (USTR) 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.

01.07.08
Before adjourning for the year, the US Senate confirmed Chris Padilla as Undersecretary of Commerce for International Trade, the agency which administers US anti-dumping and countervailing duty laws. President George W. Bush on December 18 also nominated Deanna Okun to be Deputy US Trade Representative.

01.07.08
Canada's Department of Finance recently announced its intention to implement an outward processing initiative to encourage the use of Canadian textiles in the manufacture of apparel in developing countries. The program would allow apparel made in developing countries from Canadian textiles, as specified in the proposal, to enter Canada duty-free.