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INTERNATIONAL TRADE UPDATEA Monthly AAFA Newsletter on Trade Spring/Summer 2005
• China Revalues Currency As... • ...AAFA Forms EU Footwear Dumping Task Force... • ...US/EU/Canada Take New Actions on China Safeguards • CAFTA-DR Update: House Vote This Week As Support Grows and Agreement Just Gets Better • Europe Announces New Trade Preference Program for Developing Countries • New Tariffs Levied on Exports of US-Made Pants and Shorts to Europe • Congress Rejects WTO Withdrawal • US Apparel/Footwear Imports Grow in First Five Months of 2005 While CAFTA-DR Countries Continue Fall • New AGOA Legislation Introduced • Anti-Counterfeiting Legislation Passes House/Moves to Senate • US Drops WTO Case Against Egypt • Former European Trade Minister Pascal Lamy Chosen as New WTO Leader • Proposed Labeling Rules Would Close South African Market to US-Branded Apparel & Footwear • US/Morocco FTA Implementation Delayed • New Travel Advisories/Warnings CORPORATE SOCIAL RESPONSIBILITY • Congress Renews Burma Import Ban/AAFA Calls for Worldwide Sanctions • Latest ILO Report Finds Some Problems but Overall Continued Labor Improvements in Cambodia's Apparel Industry • UN Global Compact Announces First Participant CSR Disclosures • China Moves to Develop Own CSR Standard • Upcoming CSR Conferences • UN Appoints Special Representative for CSR • ILO to Hold Meeting on Employment Impact of Global Quota Elimination CUSTOMS NEWS • AAFA-Supported Coalition Proposes Ways to Relieve West Coast Port Situation • Customs Announcement Could Lead to Port Delays in LA/Long Beach • Port of Long Beach Raises Fees/Reduces "Free Time" • Global Supply Chain Security Standards Approved • New North American Partnership Initiative Announced • Customs Leather/Plastic Coating Issue Resolved? CUSTOMS RULINGS • Click here for information on how to obtain the latest Customs rulings. CITA NEWS/ANNOUNCEMENTS • CITA Terminates Visa Requirements for All Remaining 2004 Shipments • CITA Approves Five CBTPA Short Supply Requests, Denies Two Others • CBTPA T-Shirt Cap Fills NEW REPORTS ON TRADE • New Study Outlines Trade Barriers to Apparel & Footwear Exports • WTO Report Examines Ways to Improve LDC Apparel Competitiveness • US Government Releases Annual Report on Foreign Trade Barriers NEW PUBLICATIONS/EVENTS/ANNOUNCEMENTS • AAFA Publishes New Apparel & Footwear Tariff & Trade Guides • October 28, 2005 - AAFA Issues Seminar - Don't Dump on Me! How Trade Remedy Laws Could Affect You & Your Business • AAFA's Shoe Stats 2005 Released • November 15-16, 2005 - AAFA Issues Seminar - Knock it Off! Winning the Fight Against Counterfeiting US GOVERNMENT MARKET RESEARCH • Argentina: Used Clothing Banned • Brazil: Footwear Sector Overview • Brazil: Legal Clarification of Agent & Distributor Agreements • Central America: Carpets and Other Textile Floor Coverings • Central America: Textile Fabrics & Textiles Machinery and Equipment Overview • Colombia: Yarn Manufacturers & Distributors • Costa Rica: Children's Apparel Exports • Egypt: Developments in Egypt’s Textile Industry • France: Impact of the End of Quotas • France: The Lingerie Market • France: The Swimwear Market • France: Textile & Apparel Commercial Networks • India: Apparel Brand Licensing • India: Textile Machinery Equipment • Switzerland: Textile and Fabrics Market • Turkey: Textiles & Apparel Market Summary • Turkey: Textile Importers & Dealers
CHINA REVALUES CURRENCY AS... China announced July 21 that, effective immediately, it has officially revalued its currency. According to China's Central Bank, the currency was immediately revalued upward 2.1 percent (from 8.28 Yuan/1 US Dollar to 8.11 Yuan/1 US Dollar). In future, the currency will be allowed to trade in a tight 0.3 percent band against a basket of foreign currencies. The announcement left unclear whether China would allow the currency to appreciate further. While the US House of Representatives will still vote this week on legislation to expand trade enforcement tools and trade remedy laws against China, it is unclear if this announcement will affect the US Senate vote expected this fall on legislation to impose punitive duties on all US imports from China.
Meanwhile, AAFA announced the creation of the EU Footwear Dumping Task Force to help pool and share information with AAFA member footwear companies to help combat two new investigations initiated by the European Union (EU) alleging that Chinese and Indian safety-toe footwear and Chinese and Vietnamese leather footwear were dumped on the European market. If the EU finds dumping in these cases, it could impose punitive duties on EU imports of these products, which, based on previous cases, could range from 40 percent to 120 percent. For more information about AAFA's new EU Footwear Dumping Task Force, please contact Nate Herman at 703-797-9062.
The US textile industry has filed six new China safeguard petitions since June, including Categories 341/641 (W&G Woven Shirts), 342/642 (Skirts), 351/651 (Pajamas/Nightwear), 359-S/659-S (Swimwear) and 369-Part/666-Part (Curtains/Drapes). The industry also filed a petition to re-impose safeguard quotas on Category 332/432/632-Part (Socks) when the current safeguard expires on October 28, 2005. Of the six apparel safeguard quotas already in place, four have embargoed and the other two will likely embargo by the end of July or shortly thereafter. The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) has also delayed a final decision on tow other safeguard petitions - Category 447 (Wool Trousers) and Category 620 (Synthetic Filament Fabric). CITA also published a notice on April 26 outlining how it will deal with imports shipped in excess of safeguard quota limits. Under the procedure, shipments in excess of safeguards limits will remain under embargo until one month after the expiration of the safeguard period (December 31, 2005 for all current safeguard quotas except socks, which is October 28, 2005. Thereafter, an amount equal to 5 percent of the base limit will be permitted to enter the market. Each additional month, an additional amount equaling 5 percent of the base limit will be permitted entry. For the latest information on the China safeguard petitions, please see AAFA's China Safeguard Matrix. On the international front, according to published reports, the EU announced July 22 that the 2005 quota on EU imports of sweaters and pullovers filled on July 12. The quota embargoed only one month after the EU and China reached a comprehensive bilateral agreement re-imposing quotas on EU imports on a range of Chinese apparel and textile products through 2007. The bilateral agreement was reached after the EU also threatened to impose safeguards. A group of Canadian apparel workers has also formally submitted petitions to the Canadian government requesting safeguards against Canadian imports of seven types of Chinese apparel. The petitions have only a mixed chance of succeeding since no manufacturer nor any manufacturer group has announced support for the petitions. In response to these efforts, China announced that it has imposed an export control regime on Chinese exports of apparel and textile products subject to US safeguard quotas as well as the new European Union (EU)/China bilateral textile agreement. The controls are similar to the old visa system.
The US House of Representatives will likely vote on the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) this Wednesday or Thursday. The US Senate had already approved CAFTA-DR by a vote of 54 to 45 on June 30 (actual roll call vote). A broad coalition of textile and apparel trade associations representing the entire textile and apparel supply chain, from fabric makers to retailers, from yarn spinners to wholesalers, from cotton growers to fiber manufacturers as well as the entire footwear supply chain, supports Congressional passage of CAFTA-DR as critical to the future of the textile and apparel as well as the footwear supply chain in the United States and in this hemisphere. Because of this fact, AAFA sent letters July 20 to every member of Congress reiterating to them that passage of CAFTA-DR is critical to the US apparel, footwear and textile industries, making this vote a "key" vote for the industry. Meanwhile, a new poll by the Program on International Policy Attitudes at the University of Maryland found that approximately half of all Americans support Congressional passage of CAFTA-DR. Even better, support for the agreement rises to 65 percent if the US government commits "to substantially increase federal spending on programs to help American workers who lose their jobs, and to make sure that Central American countries enforce health and safety standards for their workers." Shortly after the poll was conducted, the US government took a significant step towards responding to the call of the American people by committing to further improve the already strong labor provisions and labor enforcement mechanisms in CAFTA-DR. Further reinforcing the fact that CAFTA-DR is the best deal possible for the US apparel and textile industries, the US government released a policy brief proving that CAFTA-DR contains the most comprehensive anti-transshipment mechanisms ever created, far surpassing any previous trade agreement or preference program. We Need Your Help Now! It is not too late for you, your co-workers, your family or your friends to contact your member of Congress and tell them to VOTE YES on CAFTA-DR. It is very easy to do. Click here to find out how and to learn more about how CAFTA-DR can benefit you and your business.
The European Union (EU) on June 23 announced major changes to its Generalized System of Preferences (GSP) program for EU imports from developing countries. The changes will be implemented July 1. The GSP changes were originally slated for implementation on January 1, 2006, but were accelerated in order to help the tsunami-ravaged countries. Once implemented, the program will allow duty-free or reduced duty access for EU imports of all apparel and footwear from the tsunami-ravaged Indian Ocean region as well as from virtually all other developing countries under more flexible rules of origin. These benefits will be removed, however, if EU imports from a certain country exceeds 15 percent of total EU imports (12.5 percent for textiles and apparel). Hence, EU imports of Chinese apparel and footwear will no longer be eligible for GSP benefits.
On May 1, the European Union began to assess a 15 percent tariff on 10 categories of US-made pants and shorts exported to Europe in retaliation for the so-called Byrd Amendment subsidy, which the U.S. Government pays to US firms who file certain trade remedy cases. In 2003, the WTO ruled the Byrd Amendment subsidy illegal because it gives a direct financial incentive to companies to file marginal cases. Even marginal cases that are quickly thrown out can cost the subjects of those cases hundreds of thousands of dollars to defend against. Under Byrd, firms who file and support anti-dumping and countervailing duty cases are entitled to receive the actual dumping penalties that had been previously paid to the US Government. From 2001 until present, the United States redistributed almost $2 billion to such companies (only 8 individual companies actually received almost half of the disbursements). Until the United States rescinds this provision, the EU and possibly others will be able to impose retaliatory tariffs on US products, including US made apparel and footwear.
In a sign of continued bi-partisan Congressional support for US involvement in world trade, the US House of Representatives on June 9 resoundingly rejected (by a vote of 56 for and 363 against) a resolution that, if approved, would have withdrawn the United States from the World Trade Organization (WTO).
US apparel imports (actual data) increased 13.9 percent in the first five months of 2005 compared with the first five months of 2004 to 8.4 billion SME worth $26.0 billion while US footwear imports (actual data) also rose significantly during the same period, growing 6.0 percent to 1.0 billion pairs worth $7.0 billion. While US apparel imports from Central America and the Dominican Republic grew 8.1 percent in the first five months of 2005, its overall share of US apparel imports continued to decline, falling from 19.7 percent to 18.7 percent, dropping the CAFTA-DR countries to second behind China (24.4 percent) 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 (+115.3 percent) as well as numerous other countries grew significantly during the first five months of 2005, including #4 Bangladesh (+22.0 percent), #6 India (+31.4 percent), #7 Indonesia (+15.4 percent), #10 Cambodia (+12.1 percent), #11 Pakistan (+13.8 percent), #13 Thailand (+10.3 percent), #15 Sri Lanka (+15.6 percent) and #21 Jordan (+33.1 percent). US footwear imports from a number of countries also grew significantly in the first five months of 2005, including #1 China (+8.9 percent), #3 Vietnam (+39.8 percent), #9 India (+33.2 percent), #13 Canada (+74.5 percent), #14 South Korea (+8.3 percent), #16 Colombia (+133.6 percent), #17 Romania (+25.7 percent) and #19 the Philippines (+35.4 percent). US footwear imports from #12 supplier the Dominican Republic, due to a recent change in trade preference rules, grew 32.0 percent during the period, reversing years of significant decline. This growth could possibly provide a preview of the benefits for the region if CAFTA-DR passes Congress.
On June 30, Congressman Jim McDermott (D-WA) introduced legislation to expand and extend the African Growth & Opportunity Act (AGOA), a trade preference program for sub-Saharan Africa. The legislation, H.R.3175, called the Answer Africa's Call Act, would, among other things, extend a provision in AGOA until 2015 that allows apparel made in least developed countries in Africa from third-country yarn and fabric to enter the United States duty-free. In related news, CITA announced that, effective July 18, US imports of handloomed, handmade and folklore apparel from Ethiopia can now enter the United States duty-free under AGOA.
The US House of Representatives on May 23 approved by voice vote AAFA-supported legislation that would strengthen laws against counterfeiters. The Stop Counterfeiting in Manufactured Goods Act (H.R. 32) requires the mandatory destruction of equipment used to manufacture and package counterfeit goods. In addition, it addresses methods that counterfeiters have used to evade prosecution, such as the selling of patch sets or medallions that can later be attached to generic merchandise and given the appearance of a genuine product. The bill now moves to the US Senate where similar legislation has already been introduced to wide bi-partisan support.
The US government announced May 20 that it has dropped its World Trade Organization (WTO) case against Egypt regarding textile/apparel import duties. The United States originally brought the case in early 2004 alleging that Egypt's practice of charging a per garment duty had effectively created tariff rates ranging from 141 percent to 51,296 percent on imported textiles and apparel. In response to the WTO complaint, Egypt dramatically lowered its duties on imports of apparel and textiles. Egypt will now charge a 40 percent duty on imports of apparel, 12 percent on yarns, 22 percent on all kinds of fabrics and 35 percent on imports of home textiles. According to the announcement, the US government has confirmed that Egypt has indeed implemented the new duty levels in practice and has, therefore, withdrawn the case.
The World Trade Organization (WTO) formally announced May 26 that former European Union (EU) Trade Commissioner Pascal Lamy will be the next WTO Director General, beating out former Uruguayan trade envoy Carlos Perez del Castillo. Lamy will become the Director General on September 1, replacing Supachai Panitchpakdi, whose term is ending.
South Africa has proposed a new labeling rule for all South Africa imports of clothes, shoes, travel goods and other textile and apparel products. If imposed, the proposed rule, which would become effective in September 2005, would require that the labels or indelible markings on all imported clothes, shoes, travel goods, etc. include the registration code of the importer as well as the country of origin. Obviously, inclusion of the "SARS importer registration code" on the label or indelible marking would require US exporters to make clothes and shoes containing the compliant markings solely for the South African market and sometimes different sets of product if the exporter is working with more than one South African importer. This requirement would make exporting clothes, shoes, etc. to the South African market cost-prohibitive. You can still comment on the proposed rule. Comments are due July 31.
According to published reports, the US/Morocco Free Trade Agreement (FTA) will now go into effect January 1, 2006 instead of July 1, 2005, as originally expected. Although approved by the US Congress last year, the Moroccan Parliament is not expected to approve the agreement or make the necessary changes in Moroccan law until this fall.
The U.S. State Department has issued new travel advisories/warnings for Afghanistan, Algeria, Ethiopia, Iran, Iraq, Israel, Kenya, Malaysia, Nepal, Somalia and Uzbekistan. Access the latest advisories on State's Web site.
CONGRESS RENEWS BURMA IMPORT BAN/AAFA CALLS FOR WORLDWIDE SANCTIONS On July 19, the US Senate approved, by a vote of 97-1, AAFA-supported legislation renewing a ban on ALL US imports from Burma. The US House of Representatives approved the same bill on June 21 by a vote of 423-2. AAFA applauded the vote, but urged the United States to expand sanctions against Burma beyond the nation's borders (AAFA Press Release). Commenting on the vote, AAFA President & Chief Executive Officer Kevin M. Burke, stated, "This renewal will send a clear and unmistakable message that the United States is not interested in doing business with regimes such as the military regime that brutally enslaves the people of Burma." Burke noted, however, that, "US sanctions alone will not work. Therefore, we urge President Bush to actively seek similar steps from other countries. We hope that we can work together with the Bush administration to press our allies in the region and around the world to impose similar sanctions against this brutal regime. Only when this regime faces a world united against it will freedom truly come to the Burmese people."
According to the latest report in the International Labor Organization's (ILO) ongoing program monitoring labor rights in Cambodia's apparel industry, while a number of violations were found in the 50 factories visited, the report notes that none of the factories had been visited previously. The report's authors fully expected a significant number of the violations to be rectified by the time of the ILO's follow-up visits. In related news, the ILO has announced that, thanks to support from the United States, France and others, the ILO's current monitoring program will continue at least through 2009. Find out the latest news on the ILO's Cambodia monitoring program as well as great resources on Cambodia's labor laws and enforcement at http://www.betterfactories.org/.
The United Nations (UN) Global Compact announced July 15 that 38 percent or 367 of its 977 long-term participating companies have issued annual public reports documenting their progress towards fulfilling the Global Compact's 10 fundamental principles in the areas of human rights, labor standards, environmental stewardship and anti-corruption. The UN Global Compact is a UN/private sector initiative with over 2000 member companies in over 80 countries that requires its participants to embrace and implement the 10 fundamental principles. The UN Global Compact's "Communication on Progress" policy requires that participants – in order to avoid being identified as inactive on the UN Global Compact website – develop an annual disclosure to their stakeholders on implementation actions within two years of joining the Global Compact initiative. The first deadline under this new policy was June 30.
In what many see as push-back against perceived foreign interference, two different Chinese government-affiliated organizations have begun to develop their own CSR standards/codes of conduct. The separate codes are being developed by the China National Textile and Apparel Council (CNTAC) and the China Enterprise Corporation. While the codes resemble US codes of conduct in many ways, they lack certain principles such as freedom of association. It is unclear whether the Chinese, once these codes are developed, will still allow foreign firms to use their own codes of conduct or will instead force them to use one of the Chinese codes.
Social Accountability International (SAI) will hold its next annual conference, titled Beyond Compliance: Innovative Strategies for Responsible Sourcing, will take place September 19, 2005 in New York City. Business for Social Responsibility (BSR) announced that its next annual conference, titled Questioning Assumptions -- Changing Frameworks, will take place November 1-4, 2005 in Washington, DC.
In an unprecedented move, the United Nations High Commissioner for Human Rights (UN Human Rights Commission) announced April 20 that it will appoint a special representative on corporate social responsibility issues. The representative will be charged with developing global standards for corporate responsibility and accountability for corporations with regard to human rights. The source for the authority to create such standards and enforce them remains unclear.
The ILO will hold a special meeting October 24-26, 2005 in Geneva to discuss the impact on global employment from the removal of global apparel and textile quotas. According to the ILO, the textile and clothing industry employs more than 40 million workers worldwide.
AAFA-SUPPORTED COALITION PROPOSES WAYS TO RELIEVE WEST COAST PORT SITUATION The AAFA-supported Waterfront Coalition, which represents US shippers and importers from a variety of industries, recently issued a white paper proposing both short and long-term solutions to the growing congestion at West Coast ports. Among the group's recommendations are encouraging the increased use of alternative West Coast, Gulf Coast and East Coast ports, staggering shipping departure times, moving to a 24/7 work environment, increasing cooperation between the ports, shippers and transportation providers and other short term measures as well as implementing a number of specific port, road and rail infrastructure projects in the long term.
The US Department of Homeland Security's Bureau of Customs & Border Protection announced July 20 that, by the end of this year, every container moving through the Ports of Los Angeles/Long Beach will move through a radiation portal monitor to check for radioactive elements. The move, part of Customs' continuing efforts to secure the nation's ports, could instead create disarray and long delays for cargo moving through LA/Long Beach. Almost half of all ocean-bound freight entering the United States enters through the Ports of LA/Long Beach. Concerns regarding Customs' proposal range from the possibility that Customs will have too few machines and/or staff to handle the volume of cargo and whether Customs' radiation monitors can accommodate on-dock rail to uncertainty surrounding how Customs will handle legitimate cargo that naturally emits trace amounts of radiation. AAFA will continue to track this situation as it develops.
Effective July 1, the Port of Long Beach, CA raised fees by five percent. The increases to the Port’s shipping services fees will include hikes in wharfage, dockage, storage and demurrage. In authorizing the increase, the Port cited sharp increases in infrastructure, environmental and security costs to deal with soaring trade volumes and threats from terrorism. Meanwhile, the Port of Long Beach also announced it has adopted one of the key recommendations of the AAFA-supported Waterfront Coalition (see related article). Effective July 1, the temporary storage period or "free time," provided to inbound cargo has been reduced from five business days to four business days. The reduction in "free time" will help to keep cargo moving smoothly by giving shipping terminals tools to avoid the kinds of backups the Port saw last year. Less congestion will also improve turn times for truck drivers and improve air quality.
On June 24, the World Customs Organization (WCO) approved a Framework of Standards to Secure and Facilitate Global Trade. The Framework represents the WCO's most recent effort to develop a common standard to secure global supply chains against terrorism, criminal activity and commercial fraud while at the same time facilitating legitimate trade flows. The framework features 17 standards relating to the harmonization of cargo information requirements, the development of consistent risk management approaches and the deployment of non-intrusive inspection technologies. The new Framework will eventually apply to all of the WCO's 166 member countries, including the United States.
On June 27, the United States, Canada and Mexico released the first report of the Security and Prosperity Partnership of North America (SPP) initiative. The SPP initiative is aimed at increasing trilateral cooperation on security matters and improving the region's competitiveness in the global economy. New initiatives include a single program for North American trusted travelers, the regular review of transportation and border facility needs, identification of a new round of rules of origin changes (including possible footwear changes) and development of a framework to strengthen regulatory cooperation among NAFTA partners. This complements existing initiatives, including an agreement on harmonized textile and apparel care symbols that is expected to be signed by the end of this month.
At the end of 2004, AAFA, in conjunction with the Travel Goods Association (TGA) and the Fashion Accessories Shippers Association (FASA), successfully reversed US Customs' incorrect decision to reclassify all imported leather goods as goods "with an outer surface of plastic sheeting." The reclassification had effectively doubled the duties on leather goods imports entering through certain US ports. After months of delay, Customs finally issued a directive to the field and a ruling embodying these changes. While both the directive and the ruling clearly state that Customs has now returned to its long-time thickness standard test (if the coating or finish is 0.15mm thick or less, the product is classified as a leather good, if thicker than 0.15mm, it is classified as having an "outer surface of plastic sheeting"), Customs seems to have added a new standard. Unlike the thickness standard, the new "invisible to the naked eye" standard is very subjective and has led to concern that Customs officials could use this additional standard to again incorrectly reclassify quality leather goods as "outer surface of plastic sheeting." Thankfully, however, AAFA has not received any reports of problems since this new standard went into effect. AAFA will continue to monitor the situation.
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).
CITA TERMINATES VISA REQUIREMENTS FOR ALL REMAINING 2004 SHIPMENTS The US inter-agency Committee for the Implementation of Textile Agreements (CITA) announced that, effective July 1, it has terminated all visa requirements for all incoming goods and staged entries of overshipments that are subject to 2004 quotas.
CITA announced April 20, May 11 and July 5 that it has determined that: certain fancy polyester filament fabric for use in boys' suits, trousers and suit-type jackets or blazers, sizes 2T - 20; certain ring spun single yarns of English yarn number 30 and higher of 0.9 denier or finer micro modal fibers; certain 100 percent cotton, 4-thread twill weave, flannel fabrics, of yarn-dyed, combed and ring spun single yarns; certain 100 percent cotton, double faced irregular sateen weave, flannel fabrics, of yarn-dyed, single yarns; and certain 100 percent cotton, 4-thread twill weave and herringbone twill weave, flannel fabrics, of yarn-dyed, ring spun and plied yarns cannot be supplied by the domestic industry in commercial quantities in a timely manner under the Caribbean Basin Trade Partnership Act (CBTPA), the African Growth and Opportunity Act (AGOA) or the Andean Trade Promotion & Drug Eradication Act (ATPDEA). Therefore, US imports of apparel cut or assembled in the Caribbean Basin, sub-Saharan Africa and/or the Andean region from third-country subject yarns and fabrics can enter the United States duty-free. CITA, in the past two months, has also denied two short supply petitions under CBTPA and AGOA, determining that certain coat weight fabrics of 100 percent carded camel hair, 100 percent carded cashmere, or a blend of carded cashmere and wool fibers and certain woven bamboo/cotton fabric can indeed be supplied by the domestic industry in commercial quantities in a timely manner. If CITA had granted the petitions, US apparel imports from the Caribbean Basin and sub-Saharan Africa containing third-country subject fabrics would have entered the United States duty-free. For the latest information on short supply requests, please go to the Sandler & Travis Trade Advisory Service's (STTAS) website.
The CBTPA T-shirt cap, which provides duty-free access for 12 million dozen t-shirts made in Central America and the Dominican Republic with US Yarns, filled in late June. The cap will not reopen until October 1, effectively penalizing US exporters of yarns as well as US T-shirt companies in the region. Although such caps exist in the current CBTPA program, there is no limit on the use of US inputs in CAFTA-DR. A provision was included in the CAFTA-DR, at the request of AAFA, which will provide relief for companies who still use US yarns during this embargo period, provided the CAFTA-DR is approved and the CAFTA-DR partner countries permit retroactivity to January 1, 2004.
NEW STUDY OUTLINES TRADE BARRIERS TO APPAREL & FOOTWEAR EXPORTS The European Union released a new study in June outlining trade barriers to apparel and footwear exports in the world's largest markets. The report found that China, India, Russia and the United States were the most difficult markets to penetrate, while barriers in Egypt, Japan, Mexico and Pakistan also made those markets hard to penetrate. The report outlines in detail the barriers in each market.
A June discussion paper published by the World Trade Organization (WTO) examines possible options for least developed countries (LDCs) to improve their competitiveness in the post-quota world. The report finds that LDCs still maintain some inherent advantages such as cheap labor and preferential access to developed country markets, but they have invested little in the steps they need to take to exploit these advantages, such as projects to improve the ability of LDCs to offer "full-package" production or infrastructure projects to improve movement of product. Multilateral and regional institutions do have programs to help, but the LDCs also seem to have done little to take advantage of this assistance.
The US government released its annual report highlighting foreign trade barriers on March 30. While the report found some progress in lowering trade barriers in China, India and elsewhere, the report blasted these countries for maintaining significant trade barriers to US-made and US-branded products, including lack of intellectual property rights (IPR) enforcement and distribution rights as well as onerous labeling requirements. The report also took Japan to task for its continuing restrictions on imports of leather footwear.
AAFA PUBLISHES NEW APPAREL & FOOTWEAR TARIFF & TRADE GUIDES Do you want to know what tariffs, taxes and other regulations your apparel and footwear will face entering the 50 largest countries/markets worldwide? You can find this information and more in AAFA's new Guides to Apparel & Footwear Tariff and Trade Regulations 2005. These guides are available for purchase in either print or CD/ROM formats. The price for each guide is $149 for AAFA members or $299 for non-members. You can also purchase both the Apparel and Footwear Guides for the special package price of $199 for AAFA members and $399 for non-members. To order, call AAFA at 703.524.1864 or order online through the "Publications" section of AAFA's Website.
7:30 am - 2:00 pm, Union League Club, 38 East 37th Street, New York City Your company has succeeded in putting together a cost-effective, efficient and predictable sourcing strategy to deal with the post-quota and post-safeguard world. All of sudden (as actually happened this month), you learn that Europe has already initiated anti-dumping cases against footwear from China, Vietnam and India. Further, half of your suppliers are named as respondents in the case. Even worse, you learn your product could be facing punitive import duties as high as 100-200% in as little as six to nine months from now! Moreover, you learn that the United States plans to file a similar anti-dumping case or a countervailing duty case on imported clothes. What do you do? How did you not see this coming? Mark your calendar now and plan to attend this exciting event to listen and learn from some of the most preeminent authorities on trade remedy law today. Contact Nate Herman at 703.797.9062 for more details.
In 2004, did you know that US consumers bought a record 2.15 billion pairs of shoes for an average of more than seven pairs of shoes for every man, woman and child in the United States. Did you know that over 98 percent of those shoes were imported? Did you know that, despite record demand, US retail prices for shoes have fallen every year since 1998? Find out more about this and more in AAFA's Shoe Stats 2005 publication, a statistical overview of the US footwear market.
Fashion Institute of Technology (FIT), New York City Counterfeiting is a pervasive global concern affecting the sewn products industry every day. And it shows no signs of stopping, continuing to grow on a worldwide scale, impacting every facet of our industry. This two-day forum tackles the issue from the legislative, regulatory, customs, and brand identity perspectives -- highlighting the problems, introducing available resources and solutions to combat it, and developing a game plan of best practices to protect your brand. Contact Susan Lapetina at 703.797.9055 for more details.
• July 21 - India: Apparel brand licensing in India • July 20 - Central America: Carpets and Other Textile Floor Coverings • July 19 - Egypt: Developments in Egypt’s Textile Industry • July 18 - France: The Swimwear Market • July 15 - Argentina: Used Clothing Banned • July 13 - France: The Lingerie Market • July 11 - Switzerland: Textiles and Fabric Market • July 1 - Costa Rica: Children's Apparel Exports • June 27 - France: Textile & Apparel Commercial Networks • June 23 - India: Textile Machinery Equipment • June 7 - Brazil: Legal Clarification of Agent & Distributor Agreements • May 24 - Turkey: Textile & Apparel Market Summary • May 18 - Central America: Textile Fabrics & Textiles Machinery and Equipment Overview • May 10 - France: Impact of the End of Quotas • April 19 - Turkey: Textile Importers & Dealers • April 12 - Colombia: Yarn Manufacturers & Distributors • March 21 - Brazil: Footwear Sector Overview 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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