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INTERNATIONAL TRADE UPDATEA Monthly AAFA Newsletter on Trade November/December 2004
• AAFA Calls for Dismissal of China Safeguard Petitions • AAFA Applauds Enactment of New CBTPA Footwear Provisions • CITA Issues Final Rules for 2004 Apparel Quota Overshipments • EU Announces Post-Quota Plan for Processing 2004 Apparel/Textile Imports • AAFA Fights Proposed EU Anti-Dumping Action Against Chinese Leather Footwear • Dominican Republic Takes First Step Towards Resolving DR-CAFTA HFCS Tax Dispute • China Implements New Apparel Export Tax & New Trading & Distribution Rights for Foreign Firms • EU/Canada to Remove Quotas on Apparel/Textile Imports from Vietnam • Canada/EU/Japan Propose Sanctions Against US-Made Apparel/Footwear in WTO Byrd Dispute • US Announces Egypt QIZ Agreement: Allows Duty-Free Access for Certain Egyptian Apparel/Footwear • US Government Requests Comments on Current World Trade Negotiations • US Government Requests Comments on Foreign Trade Barriers: Japan & Footwear et Al • US Government Requests Comments on IPR Problems in China • US/Australia Free Trade Agreement to Go into Effect January 1, 2005 • Bush Administration Rejects China Section 301 Currency Petition • October Trade Numbers Released • IMF/World Bank Offer Assistance to Developing Countries Dealing with Post-Quota Adjustments • ITC Requests Comments on Export Potential of/Trade Barriers Faced by AGOA Countries • Burkina Faso Now Eligible for AGOA Benefits • SE Asian Countries Reach Free Trade Pacts with Selves/China • US Government Requests Comments on Proposed FTAs with Oman and UAE • New Travel Advisories/Warnings CORPORATE SOCIAL RESPONSIBILITY • Report: Cambodia's Economy Will Likely Slow After Quota Elimination CUSTOMS NEWS • Shipping Group Warns of Higher Pacific Shipping Rates • Gulf Ports Announce New Security Fees • Customs Considers Proposed Change to Classification of Textile Outsole Footwear CUSTOMS RULINGS • Click here for information on how to obtain the latest Customs rulings. CITA NEWS/ANNOUNCEMENTS • Apparel/Textile Visa Requirements Canceled for All WTO Countries • CITA Approves Two CBTPA Short Supply Requests/Rejects Third Request • CITA Denies Two Other CBTPA Short Supply Requests • Customs Issues Final CBTPA Regs for Brassieres • CITA Denies Andean Short Supply Request on Certain Polyester Monofilament Yarn • US Government Announces 2005 Wool TRQ Allocations NEW REPORTS ON TRADE • OECD: Post-Quota Winners are Those that Master the Logistics of the Marketplace • Report: Corruption is Rampant Worldwide • Report: China Has a Long Way to Go on WTO Compliance • Report: 2004 Trade Growth to Exceed 2003 Despite Higher Oil Prices • WTO Issues Final Report on Agreement on Textiles and Clothing (ATC) • Treasury: No Foreign Countries Are Manipulating their Currency • Report: SMEs Face Barriers to Exporting • WTO Report Cites Sharp Decline in New Trade Dispute Cases for 2004: Textile/Apparel AD Cases on Rise • WTO Issues First Report on "Cotton Initiative" MARKET RESEARCH • Argentina: Apparel: Sector Structure and Trends • Australia: Australia Offers Niche Opportunities for the U.S. Apparel Exporter • Australia: Demographic 14-24 Drives Growth in the Australian Sports Fashion Market • Brazil: Brazilian Surf Market • Chile: Chile's Retailers Combine Forces • Indonesia: Textile Machinery Exhibition - International Textile and Garment Machinery Exhibition (ITGME) 2005 • New Zealand: Apparel Update, October 2004 • Russia: Jeans’2005 International Trade Show in Moscow, Russia: Opportunities for U.S. Firms • United Kingdom: Infant Wear To Soar On Baby Boom • United Kingdom: UK 's Etam Fashion Chain Extends Plus-size Fashion with Four Standalone Stores
AAFA CALLS FOR DISMISSAL OF CHINA SAFEGUARD PETITIONS AAFA President & Chief Executive Officer Kevin M. Burke submitted five sets of comments on December 9 urging the US government’s Committee for the Implementation of Textile Agreements (CITA) to reject the China “threat-based” safeguard petitions on cotton knit shirts (Category 338/339), cotton and man-made fiber (MMF) woven shirts (Category 340/640), underwear (Category 352/652), MMF knit shirts (Category 638/639) and MMF trousers (Category 647/648). (AAFA Press Release) For each of the subject petitions, the petitioners have not substantiated the claim that imports of the subject products from China have adversely affected, or threaten to do so in the future, the US industry in any of the subject products. Because the threshold has not been met in any of the cases, AAFA urges CITA to reject all of the subject petitions. AAFA had already submitted comments urging the rejection of a petition on cotton trousers (Category 347/348). In commenting on the petitions, Burke said, “I am disappointed that so much time and effort has been spent on this issue. We should instead focus on initiatives that promote predictability and represent a pro-growth and constructive approach to trade. One such initiative is the US-Dominican Republic/Central America Free Trade Agreement (US-DR/CAFTA), which has a demonstrated potential to attract business to this country and this hemisphere to the benefit of US apparel companies and US textile manufacturers." In a related note, CITA requests comments on a US textile association coalition China "threat-based" safeguard petition on men's and boys' wool trousers (Category 447). Comments are due January 10, 2005. The same coalition of textile associations has also filed China safeguard petitions requesting the reapplication of safeguards on US imports of Chinese brassieres (Category 349/649) and Chinese robes/dressing gowns (Category 350/650). The current safeguard quotas on those products end December 23, 2004. To obtain copies of AAFA's comments as well as the latest information on all of the China safeguard apparel petitions, please go to AAFA's website.
AAFA President & Chief Executive Officer Kevin Burke applauded President Bush’s December 3 enactment of new footwear provisions for the Caribbean Basin Trade Partnership Act (CBTPA). The legislation, effective immediately, modifies CBTPA by making virtually all US footwear imports from Central America and the Caribbean (including the Dominican Republic) duty-free under very flexible rules of origin that allows the use of third-country uppers. The rule requires a change to Harmonized Tariff System (HTS) headings 6401 through 6405 from any heading outside that group ("substantial transformation"), provided there is a regional value content of not less than 35 percent of the appraised value of the product. The 35 percent must be comprised of the sum of (1) the cost or value of the materials produced in a beneficiary country or two or more beneficiary countries (including the United States), plus (2) the direct costs of processing operations performed in a beneficiary country (including labor costs) or countries. Again, as long as the 35 percent regional value content requirement is met, there are no restrictions on the use of third-country uppers. To learn more, please contact AAFA's Nate Herman at 703-797-9062.
The US government's Committee for the Implementation of Textile Agreements (CITA) issued rules for 2004 apparel quota overshipments on December 7. For all shipments exported in 2004 that exceed the applicable 2004 quota, entry will not be permitted until February 1, 2005. From February 1 through February 28, 2005, entry will be permitted to goods in an amount equal to 5 percent of the applicable 2004 base quota limit. For each succeeding month, beginning on the first day of the month and extending through the last day of the month, entry will be permitted to goods in an amount equal to 5 percent of the applicable base 2004 quota limit, until all shipments in excess of the quota limits have been entered. For all shipments exported from China that exceed the China safeguard quotas on knit fabric (category 222), brassieres (Category 349/649) and robes and dressing gowns (Category 350/650), which apply to goods in these categories exported from China between December 24, 2003 and December 23, 2004, entry will not be permitted until January 24, 2005. From January 24 through February 23, 2005, entry will be permitted to goods in an amount equal to 5 percent of the applicable safeguard limit. For each succeeding period, beginning on the 24th of the month and extending through the 23rd of the following month, entry will be permitted to goods in an amount equal to 5 percent of the applicable base safeguard limit, until all shipments in excess of safeguard limits have been entered.
The European Union (EU) on October 26 adopted a proposal for processing European apparel and textile imports after quotas are removed on January 1, 2005. The plan reiterates that the EU will eliminate all apparel/textile quotas on imports from World Trade Organization (WTO) countries on January 1, 2005. All goods shipped (leaving the exporting country) before January 1, 2005 must still meet the 2004 quota/visa requirements. However, these goods will be allowed to enter the EU freely starting April 1, 2005. Finally, the plan adopted by the EU makes clear that the EU, until further notice, will maintain apparel/textile quotas on most non-WTO countries, except Vietnam (See Related Story).
AAFA has heard that the associations representing the European footwear industry may file an anti-dumping case shortly against European Union (EU) imports of Chinese leather footwear (HTS 6403). EU quotas on Chinese footwear end on January 1, 2005 as part of China's World Trade Organization (WTO) accession agreement. AAFA has and will continue to fight against any new restrictions on EU imports of Chinese footwear as such restrictions hurt US and European footwear firms alike.
The Dominican Republic (DR) Senate on December 7 passed the first reading of a bill that repeals a controversial 25 percent tax on beverages containing high fructose corn syrup (HFCS). The second reading of the bill is scheduled for later this month. In response to the controversial tax, the US government took the first formal steps the week of November 15 to remove the Dominican Republic (DR) from the US/Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). HFCS is a major export of the United States. Please urge your contacts in the DR that the HFCS beverage tax must be repealed NOW!!!!
China announced December 12 that, as of January 1, 2005, it will impose a new tax on Chinese exports of apparel and textiles. The announcement did not mention the level of the new tax nor did it say if the tax would apply to all apparel and textiles or to just certain categories of apparel and textiles. China also announced that, as of December 10, foreign companies now have full trading rights, i.e. investing in and/or owning wholesale and retail companies. More importantly, the new regulations also permit certain foreign-owned holding companies to produce its products through any factory or enterprise located in China and distribute these products in the Chinese market (i.e. distribution rights).
Both Canada and the European Union (EU) announced at the beginning of December that they will eliminate all quotas on apparel/textile imports from Vietnam on January 1, 2005, the same day they will remove quotas on apparel/textile imports from all World Trade Organization (WTO) countries. Vietnam is not a WTO member. The United States will continue to impose quotas on US apparel/textile imports from Vietnam until Vietnam becomes a WTO member. Vietnam hopes to join the WTO by the end of 2005 or in early 2006.
Canada has joined the European Union and Japan in threatening to impose new sanctions on Canadian, European and Japanese imports of US-made apparel, footwear and textiles in retaliation for the failure of the United States to comply with a World Trade Organization (WTO) ruling against the Byrd Amendment. The WTO approved the countries' request for sanctions on November 26. The Byrd Amendment disburses the proceeds from the punitive duties placed on US imports in anti-dumping and countervailing duty (AD/CVD) cases to the US manufacturers who originally filed the AD/CVD cases. The WTO ruled the Byrd amendment illegal because the WTO believes it provides a direct financial incentive to US manufacturers to file AD/CVD cases. Public comments on Canada's proposed sanctions list are due December 20 while the EU announced that it will impose sanctions early in 2005. Both the Bush administration and the Chair of the House Ways & Means Committee have announced that they will continue Congressional efforts to comply with the WTO ruling early next year.
The US government announced December 10 that the United States, Israel and Egypt have reached an historic agreement to open three Qualified Industrial Zones (QIZs) in Egypt. The QIZs allow Egypt to export products made in the designated QIZs to the United States duty-free under fairly flexible rules of origin. In order for an article made in a designated Egyptian QIZ to gain duty-free entry, QIZ factories must add at least 35 percent to the value of the article. This 35 percent minimum content figure can include value added (including labor costs) in Israel, Egypt or the United States. The QIZ benefits apply to all products that qualify, including apparel and footwear. AAFA and Sandler, Travis & Rosenberg, P.A. will host a seminar on the benefits of the new Egypt QIZ program to US companies on Tuesday, December 21, from 10AM-2PM in the offices of Sandler Travis at the Ronald Reagan Building and International Trade Center, 1300 Pennsylvania Avenue, N.W., Suite 400 in Washington, DC. For more information, please visit AAFA's Website.
The Office of the US Trade Representative (USTR) requests comments on US negotiating objectives for the current World Trade Organization (WTO) Doha Round global trade negotiations, including market access goals. Comments are due January 31, 2005.
The Office of the US Trade Representative (USTR) requests comments on barriers US branded products face entering foreign countries for use in its 2005 National Trade Estimate report on foreign trade barriers. Comments are due December 21. Japan has long maintained a foreign trade barrier against US footwear firms in the form of a tariff-rate quota (TRQ) on leather footwear where it allows only a small amount of leather footwear imports (12 million pairs) to enter at a nominal duty-rate before imposing exorbitant duties that essentially denies entry to those imports. Japan has refused to remove this barrier (See USTR's 2004 National Trade Estimate Report for more details). AAFA is looking for US footwear manufacturers whose US-made leather footwear has been denied entry to the Japanese market by this barrier and who are interested in working with AAFA to overturn this barrier. Please contact Nate Herman at 703.797.9062 for more information.
The Office of the US Trade Representative (USTR) requests comments on intellectual property rights (IPR) problems faced by US companies in China, including problems with copyright, patent and trademark issues as well as IPR enforcement problems. Comments are due January 31, 2005.
The US government announced November 17 that the US/Australia Free Trade Agreement (FTA) will go into effect January 1, 2005. The FTA allows virtually all footwear to enter duty-free under flexible rules of origin that permits the use of third-country uppers. Apparel, on the other hand, is subject to a 10-year duty phase-out under an extremely restrictive yarn-forward rule of origin, essentially rendering the FTA useless for US apparel firms.
The Office of the US Trade Representative (USTR) announced November 12 that it rejected a September 30 Section 301 petition from 30 members of Congress alleging that China has intentionally undervalued its currency in order to make its products more competitive in the US market. According to the statement, although the Bush administration believes that China must move faster to adopt a flexible, market-based exchange rate, it does not believe that a Section 301 action would assist in these efforts. Instead, it could be more damaging than helpful at this time. Further, the announcement claimed that the Bush administration has made progress with China towards liberalizing its currency. According to the petitioners, USTR never met with the Congressional coalition that filed the petition before making its decision. Further, a Congressionally-mandated US Department of Treasury report on currency manipulation was due to Congress by October 15 but was not issued until December 3, almost a month after the Section 301 petition was rejected.
US apparel imports increased 2.6 percent in the first ten months of 2004 versus the first ten months of 2003 to 16.5 billion SME worth $54.3 billion while US footwear imports rose significantly during the same period, growing 8.1 percent to 1.8 billion pairs worth $13.7 billion. US apparel imports from Central America and the Dominican Republic fell 3.5 percent in the first ten months of 2004 versus the first ten months of 2003. The region’s share of US apparel imports also declined, falling to 17.8 percent from 19.0 percent during the same period. US footwear imports from the Dominican Republic continued their long-term decline as well. During the same period, however, US apparel imports from China increased significantly, growing 29.9 percent, with apparel imports from Indonesia (11.1 percent), South Korea (7.8 percent), Cambodia (19.0 percent), India (11.9 percent), Thailand (4.7 percent), Pakistan (14.8 percent) and Jordan (63.2 percent) also experiencing strong growth. Likewise, US footwear imports from China (10.9 percent), Vietnam (43.0 percent), Canada (24.1 percent) and Romania (31.5 percent) skyrocketed in the first ten months of 2004. For more information, please see AAFA's December 14 press release on the latest trade statistics.
The Managing Director of the International Monetary Fund (IMF) and the President of the World Bank announced at the October 22 meeting of the World Trade Organization's (WTO) General Council that both organizations will provide financial assistance to developing countries dealing with adjustment issues once worldwide quotas on apparel and textile are removed January 1, 2005. In fact, the IMF has already provided financial assistance to Bangladesh for this purpose under its newly created Trade Integration Mechanism (TIM).
The US International Trade Commission (ITC) requests comments for a newly initiated investigation into the export potential of, and trade barriers faced by, sub-Saharan African countries eligible for trade preferences under the African Growth and Opportunity Act (AGOA). Requests to appear at ITC's March 1, 2005 hearing are due February 14, 2005. Written comments are due to the ITC by March 11, 2005.
Effective December 25, most products, including footwear, from Burkina Faso can now enter the United States duty-free under the African Growth and Opportunity Act (AGOA) under flexible rules of origin. Burkina Faso, however, must now be certified by Customs as having a sufficient visa and inspection program in order to qualify for the apparel benefits under AGOA.
The ten members of the Association of Southeast Nations (ASEAN) announced November 29 that they have reached a free trade agreement that will eliminate all tariffs (including all apparel and footwear) among the countries by 2012. ASEAN also announced that they have reached a free trade agreement with China that will eliminate all tariffs among ASEAN countries and China by 2010. ASEAN is comprised of Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
USTR and the ITC request comments on the proposed free trade agreements (FTAs) with Oman (USTR - ITC) and the United Arab Emirates (UAE) (USTR - ITC). Requests to appear at ITC's January 5, 2005 hearing on both Oman and UAE are due December 17. Written comments on both FTAs are due to the ITC by January 12. Requests to appear at USTR's January 12, 2005 UAE hearing and the USTR's January 14, 2005 Oman hearing are due January 5. Written comments on both FTAs are due to USTR January 25.
The U.S. State Department has issued new travel advisories/warnings for Afghanistan, Burundi, the Central African Republic, Cote d'Ivoire, Ghana, Guatemala, Iran, Iraq, Israel, Kenya, Kyrgyz Republic, Laos, Lebanon, Malaysia, Nepal, the Philippines, Russia, Saudi Arabia, Somalia, Sudan, Ukraine, Uzbekistan and Yemen. Access all advisories on State's Web site.
REPORT: CAMBODIA'S ECONOMY WILL LIKELY SLOW AFTER QUOTA ELIMINATION In its November 9 release of its semi-annual East Asia and Pacific Regional Update, the World Bank found that Cambodia' economy will slow down significantly next year due to predicted losses in its apparel sector - the country's main economic engine - caused by the worldwide elimination of quotas. The World Bank predicts that Cambodia's apparel exports, which comprise 76 percent of Cambodia's total exports, will fall 12 percent in 2005. Cambodia's apparel factories employ about 240,000 people. Cambodia has a unique labor rights certification agreement with the International Labor Organization (ILO) that has afforded the country with larger quota allotments in the US market. Cambodia and the ILO have agreed to continue this arrangement, with the support of US funding, at least through 2005. Cambodia, along with other least developed countries, is seeking duty-free access to the US market in an effort to stem the projected losses in its apparel sector.
SHIPPING GROUP WARNS OF HIGHER PACIFIC SHIPPING RATES The Transpacific Stabilization Agreement, which represents virtually all of the major shipping lines, announced October 29 that it recommends that all shipping lines raise their prices on all Pacific-based freight by at least 11-12 percent in 2005. The group blames port and inland congestion in the United States and Asia as well as delays moving through the Panama Canal caused by a dramatic increase in cargo volumes from Asia, particularly out of China, as the main reasons behind the recommended price increases.
According to a November 19 press release from the Port of New Orleans, all Gulf of Mexico ports will implement a series of new fees by April 1 to pay for new security costs incurred by the ports. The fees are: 10 cents per ton on breakbulk cargo; 2 cents per ton on bulk cargo; $2 per loaded container; $1 per cruise passenger; and an additional 5 percent of dockage fees.
The US Bureau of Customs and Border Protection (Customs) and the US International Trade Commission are currently considering a proposal by the World Customs Organization (WCO) to modify the classification of footwear with textile outsoles under the Harmonized Tariff Schedule (HTSUS). The proposal addresses whether a shoe with a textile outsole where the textiles on the outsole wear off after only a few wearings should be classified as having a textile outsole, which has a much lower tariff-rate. Customs has already issued a number of rulings on this issue and it is trying to determine if the WCO proposal meets its needs. If approved, the modification would take effect January 1, 2007.
Advisory Note on Customs Rulings - Readers are cautioned against relying on a ruling issued to another importer. If Customs decides to change its position with regard to a ruling, only the party to whom the ruling was issued is insulated from financial loss. Also, a ruling may depend on very specific physical specifications of a product. Even the slightest deviation from those specifications may throw into question the applicability of the ruling. Rulings are useful tools, but must be handled with care. To see all Customs rulings for the past two months, please go to the US Department of Homeland Security's Bureau of Customs and Border Protection Customs Rulings Online Search System (CROSS).
APPAREL/TEXTILE VISA REQUIREMENTS CANCELED FOR ALL WTO COUNTRIES The US government’s Committee for the Implementation of Textile Agreements (CITA) announced December 17 that, as of January 1, 2005, it will eliminate all visa and related requirements for US apparel and textile imports from all World Trade Organization (WTO) member countries. Visa requirements will still apply to US apparel and textile imports from non-WTO countries that remain under quota, such as Vietnam and Belarus.
The US government's interagency Committee for the Implementation of Textile Agreements (CITA) announced November 30 that it has determined that certain woven, 100 percent cotton, flannel fabric, of the kind mentioned in each petition (Approval 1, Approval 2), cannot be supplied by domestic industry in commercial quantities in a timely matter under the Caribbean Basin Trade Partnership Act (CBTPA). As a result, apparel from the Caribbean Basin that uses certain third-country woven, 100 percent cotton, flannel fabrics can enter the United States duty-free. CITA, however, rejected a petition on November 30 on certain circular knit jersey fabric. CITA determined that the domestic industry can supply the subject fabric in commercial quantities in a timely matter under CBTPA.
CITA announced November 4 that it denied two petitions - the first alleging that certain fancy polyester/rayon blend suiting fabrics and the second alleging that certain twill rayon/nylon/spandex warp stretch fabric - cannot be supplied by the domestic industry in commercial quantities in a timely manner under the Caribbean Basin Trade Partnership Act (CBTPA). If CITA had approved the requests, apparel made using certain third-country fabrics, as described in each petition, in Central America or the Caribbean would have been able to enter the United States duty-free under CBTPA.
The US Department of Homeland Security's Bureau of Customs and Border Protection (Customs) has issued its final regulations regarding US imports of brassieres under the Caribbean Basin Trade Partnership Act (CBTPA). The final regulations incorporate the changes made by Congress in the Trade Act of 2002 to CBTPA's brassieres provisions.
CITA announced October 26 that it denied a petition alleging that certain polyester monofilament texturized, raw, white yarn, of denier 20D/F1, classified in subheading 5402.33.30 of the Harmonized Tariff Schedule of the United States (HTSUS), for use in women's and children's apparel, cannot be supplied by the domestic industry in commercial quantities in a timely manner under the Andean Trade Promotion & Drug Eradication Act (ATPDEA). If CITA had approved the request, apparel made using certain third-country polyester monofilament yarn in the Andean region would have been able to enter the United States duty-free under ATPDEA.
The US government on December 14 announced the 2005 wool tariff-rate quota (TRQ) allocations. The allocations allow US tailored clothing manufacturers to import a certain amount of worsted wool fabric duty-free for use in the manufacture of tailored clothing.
OECD: POST-QUOTA WINNERS ARE THOSE THAT MASTER LOGISTICS OF THE MARKETPLACE The long term winners in the post-quota world are those that can master the logistics of the marketplace, according to a new report released December 9 by the Organization for Economic Cooperation & Development (OECD), a think tank and negotiating forum for 30 of the world's richest industrialized democracies. Although the OECD report, A New World Map in Textiles and Clothing: Adjusting to Change, finds that China, India and other low-wage countries are likely to benefit the most in the short term, the report concludes that "the winners over time will be those, whether large or small, who master the logistics of the marketplace" by having the ability to "fill quality orders to short deadlines."
A total of 106 out of 146 countries score less than 5 against a clean score of 10, according to the Corruption Perceptions Index 2004, published today by Transparency International, the leading non-governmental organization fighting corruption worldwide. Sixty countries scored less than 3 out of 10, indicating rampant corruption. Corruption is perceived to be most acute in Azerbaijan, Bangladesh, Burma, Chad, Haiti, Nigeria and Paraguay, all of which have a score of less than 2. Since last year, corruption has increased in Bahrain, Belize, Cyprus, Dominican Republic, Jamaica, Kuwait, Luxembourg, Mauritius, Oman, Poland, Saudi Arabia, Senegal, and Trinidad and Tobago. On the same basis, corruption declined in Austria, Botswana, Czech Republic, El Salvador, France, Gambia, Germany, Jordan, Switzerland, Tanzania, Thailand, Uganda, United Arab Emirates and Uruguay.
China has failed to fulfill many of its World Trade Organization (WTO) commitments three years after joining the WTO according to the US government's 2004 Report to Congress on China's WTO Compliance, published December 13. Although the report noted that China's efforts to comply with its WTO commitments have been "impressive," China's efforts "are far from complete and have not always been satisfactory, and China at times has demonstrated difficulty in adhering to WTO rules." The report highlights China's failure to fulfill its WTO obligations on many subjects, including Intellectual Property Rights (IPR) protection as well as trading and distribution rights. The report notes that China has largely fulfilled its trading rights obligations, but has not issued implementing rules on allowing foreign companies full distribution rights.
Despite the sharp rise in oil prices, the volume of world trade is likely to grow by 8.5 percent in real terms in 2004, a significant improvement over 2003, according to the October 25 release of the World Trade Organization's (WTO) International Trade Statistics 2004 publication. The report found that, while the price increases for oil and other commodities may dampen growth in trade and overall output in 2005, these effects are being outweighed in 2004 by vigorous trade expansion in many countries and stronger than expected recovery in several others.
The World Trade Organization (WTO) issued its final report on the ten-year Agreement on Textile and Clothing (ATC). The ATC, agreed to by all WTO members in 1994, is the agreement that allowed for the 10-year phase-out of worldwide apparel and textile quotas that will be completed on January 1, 2005. The WTO's final report highlights the successes and problems of the ATC throughout its tenure.
According to the US Treasury Department's December 3 release of its 1st Half 2004 report on foreign exchange rate policies, "no major trading partner of the United States met the technical requirements for designation" as a manipulator of their currency. Treasury noted that despite the fact China maintains a fixed exchange rate that many feels undervalues its currency, it did not meet the legal threshold to be labeled as a manipulator. The report reiterates that the US government continues to work with China on its transition to a flexible currency system and that China has made significant progress towards that goal.
According to a November report released by the US Small Business Administration (SBA), small and medium-sized firms (SMEs) account for 97 percent of all US exporters and that their exports, valued at $182 billion, account for 29 percent of all US goods exported. The study found, however, that SMEs face a number of barriers to exporting, including: the time involved in learning the logistics of exporting; the lack of development of an actual export plan as opposed to "reactive" exporting; and the lack of use of federal and state export assistance programs. The report offers a number of recommended solutions to SMEs to help them become more successful exporters. According to the WTO's 1st Half 2004 Report on anti-dumping cases worldwide, the number of new WTO trade disputes in 2004 is likely to be the smallest amount since the WTO was established in 1994. The United States is the most frequent filer of WTO dispute cases, but is also the most targeted country in those cases. Even though overall WTO dispute cases are on the decline, the report found that anti-dumping cases involving textiles and apparel rose significantly worldwide in the 1st half of 2004, totaling 15 cases. Those 15 cases are already more than the 14 textile/apparel anti-dumping cases filed worldwide in all of 2003.
The World Trade Organization (WTO) released its first periodic report on the WTO "cotton initiative" on December 3. The report outlines the progress made to date on the "cotton initiative" and the outstanding issues that still need to be addressed.
NEW U.S. GOVERNMENT MARKET RESEARCH REPORTS Please click on the date to obtain a copy of the market research report. • October 22 - United Kingdom: Infant Wear To Soar On Baby Boom • October 29 - New Zealand: Apparel Update, October 2004 • November 1 - Brazil: Brazilian Surf Market • November 1 - United Kingdom: UK 's Etam Fashion Chain Extends Plus-size Fashion with Four Standalone Stores • November 3 - Australia: Australia Offers Niche Opportunities for the U.S. Apparel Exporter • November 12 - Chile: Chile's Retailers Combine Forces • November 16 - Indonesia: Textile Machinery Exhibition - International Textile and Garment Machinery Exhibition (ITGME) 2005 • December 1 - Russia: Jeans’2005 International Trade Show in Moscow, Russia: Opportunities for U.S. Firms • December 2 - Argentina: Apparel: Sector Structure and Trends • December 6 - Australia: Demographic 14-24 Drives Growth in the Australian Sports Fashion Market
For questions or for additional information, please contact Nate Herman, AAFA's International Trade Advisor, at 703-797-9062 or nherman@apparelandfootwear.org. American Apparel & Footwear Association |
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