Fashion made possible by global trade
Fashion made possible by global trade
Fashion made possible by global trade
Advocacy
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Associations Press Congress to Renew GSPÂ During Lame Duck Session
USFIA joined 35 other associations to urge Congressional leadership to prioritize legislative action to renew GSP before the end of this year. The associations write:
Fortunately, much congressional work on GSP renewal legislation is already done. The GSP Reform Act (H.R.7986) incorporates virtually all of the bipartisan GSP provisions from the trade package approved 91-4 by the Senate during the 117th Congress. H.R. 7986 also modernizes the program with updates to review procedures (e.g. expedited review) and “competitive need limitations” (CNLs). For example, the CNL Update Act (H.R.6555) enjoys strong bipartisan support, as did similar bills in the 117th Congress.
GSP renewal is about more than dollars and cents: the United States’ credibility as a trading partner with developing countries is at stake, and countries such as China stand ready to fill the vacuum of abdicated U.S. leadership.
The letter also urges action on AGOA and Haiti HOPE-HELP before those programs expire.
Congress could show global leadership by extending the African Growth and Opportunity Act (AGOA) and the Haitian Hemispheric Opportunity through Partnership Encouragement Act and the Haiti Economic Lift Program Act (HOPE-HELP) along with retroactive GSP renewal. Both programs are scheduled to expire on September 30, 2025 and have strong, bipartisan support. Yet as GSP users and qualifying countries know all too well, bipartisan support may not be enough to avoid a painful lapse in the programs.
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Industry Urges Biden Administration to Facilitate ILA and USMX Contract Negotiations
Organizations representing manufacturers, farmers and agribusinesses, wholesalers, retailers, restaurants, manufacturers, importers, exporters, distributors, transportation and logistics providers, and other supply chain stakeholders sent a letter to President Biden expressing their concerns over the current state of East Coast ports contract negotiations. USFIA signed the letter, alongside 196 other organizations and trade associations.
The letter urges Biden to call together the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) and “work with both parties to resume contract negotiations and ensure there is no disruption to port operations and cargo fluidity if a new contract is not reached by the [September 30] expiration date.”
This administration has certainly stepped in when other supply chain related labor discussions had the potential to impact the national economy. This includes efforts to help the ILWU and PMA resolve their West Coast port labor negotiations, efforts to help the Class I railroads come to agreement with their unions and efforts to resolve contract negotiations between UPS and the Teamsters. While there was an ongoing threat of disruptions during these negotiations, the administration helped to ensure the parties remained at the negotiating table to achieve a final contract. All without a major disruption to the supply chain.
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USFIA and Industry Groups Highlight Importance of Textile and Apparel Supply Chain in Nicaragua 301 Investigation Comments
January 8th was the deadline for comments about the Biden Administration’s 301 Investigation of Nicaragua’s Labor Rights, Human Rights, and the Rule of Law. USFIA was one of the 80 organizations that filed comments with USTR on the economic impact of potential Section 301 tariffs on the U.S. economy; on whether USTR’s investigation would achieve its stated objectives; and on the legal appropriateness of utilizing Section 301 to redress USTR’s worthy objectives.
Here's the summary from our comments:
USFIA strongly condemns the ongoing violations of labor rights and human rights in Nicaragua, and strongly condemns the erosion of the rule of law within the country. As it conducts a Section 301 investigation into the activities of the Government of Nicaragua, USFIA would urge USTR to understand the importance of an integrated Central America textile and apparel supply chain – a supply chain that is important to the health of the U.S. textile and apparel sectors. USFIA would also urge USTR to consider whether tariffs on Nicaraguan-origin apparel would punish the Ortega regime or, in fact, would have the opposite effect of weakening independent institutions within the country. Finally, USFIA would urge USTR to consider whether other statutory authorities would be more appropriate and effective at promoting change for the people of Nicaragua.
The comments filed by other groups paint a picture of the main question facing USTR: Will this investigation target the CAFTA textiles and apparel supply chain?
Here are some of the industry highlights.
Gildan says they are likely “the largest apparel producer in the Western Hemisphere.” In their comments they highlight that Nicaragua is the primary sewing location within their CAFTA-DR regional supply chain. They point out that there is uncertainty that other CAFTA-DR countries could “absorb the repositioning of apparel production presently in Nicaragua.” Gildan has invested heavily in yarn spinning in Nicaragua, which consumes “exclusively U.S.-spun yarns made from U.S.-grown cotton.”
Miliken Textiles is the largest domestic textile manufacturer in the United States. They are concerned about Chinese investment in Nicaragua.
The Chinese-owned and Chinese-invested companies in Nicaragua are operating both at the behest and with the endorsement of Nicaraguan authorities. Based on our analysis of margins and raw material costs, we suspect many of these companies are purposely operating at a loss to deliberately harm US industry, thereby eliminating competition from US companies.
They recommend tariffs on Nicaraguan apparel and textile products:
When imposing remedies at the conclusion of this Investigation, we believe the President should consider imposing tariffs on Nicaraguan imports to the US, specifically on textiles and apparel products.
NCTO provided substantial comments and recommended six steps that the Administration should take, including tariffs against products that do not meet the CAFTA rule of origin. This is a bit surprising, since, as USFIA members know, there are many CAFTA products that do not claim, or qualify for, duty-free treatment but still use U.S.-made yarns and fabrics.
1. Take aggressive action on Nicaragua and its government;
2. Protect CAFTA-DR duty-free qualifies goods from Nicaragua that contain U.S. and regional inputs so as to not create economic harm more broadly;
3. Forcefully sanction or tariff CAFTA non-qualified textile and apparel goods from Nicaragua;
4. Sanction/embargo all Chinese owned textile and apparel investment; and
5. Create a substantive enforcement mechanism that requires a “blacklist” of all companies who are found to be cheating textile/apparel enforcement and/or facilitating labor and human rights abuses.
6. Immediately close the Section 321 de minimis tariff loophole that allows imports to bypass current and future enforcement actions. Unless de minimis is addressed, any trade actions against Nicaragua will be ineffective.
The Nicaragua Solidarity Coalition points out that USTR’s 2023 and 2024 Special 301 Report made no references to “unreasonable or discriminatory foreign government practices that burden or restrict U.S. commerce” in Nicaragua.
It is therefore surprising and disturbing that the USTR should suddenly launch an investigation into Nicaragua, given that it was not on its “watch list” of countries and it appears to hold no evidence of problems that would warrant an investigation.
The Coalition also urges USTR to confine its investigation to “trade and business issues of interest to the US” and not stray into “wider political issues relating to Nicaragua.”
Some of the companies supporting the Coalition are:
- Apex Mills
- Coalition for Apparel Supply Chain Resiliency in Central America
- Cupid Nicaragua
- Darlington Fabrics
- Hornwood, Inc.
- McComb Industries
Council of the Americas (COA)took a strong position to eliminate CAFTA benefits for Nicaragua. COA writes:
It is unseemly that the United States would maintain free trade privileges with Nicaragua. For that’s at bottom what a free trade agreement is: privileged economic status with the United States. And by maintaining such privileges for dictatorial, oppressive Nicaragua, the United States undermines the most basic philosophical underpinnings of bipartisan US trade policy.
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USFIA Joins Global Digital Labeling Letter
The U.S. Fashion Industry Association (USFIA) joined 129 international trade associations and multi-stakeholder organizations today to urge the “supranational, national, and local authorities around the world to modernize their domestic textile, garment, footwear, and related accessories labeling requirements and legally allow and support the use of more sustainable and economic, digital labels for required labeling information.”
“During the past 60 years, a confusing array of labeling requirements – relating to care instructions/symbols, fiber content, importer requirements, and origin of textiles, garments, footwear, and related accessories – have proliferated around the world. Created with the best of intentions to enable consumers to make informed buying decisions, these requirements are now hindering the industry’s efforts to be more sustainable and support the circular economy, including the enhancement of traceability. Industry estimates show that, collectively, these requirements now result in the annual production of approximately 5.7 million miles (about 9.2m km) of label tape – enough to stretch from the earth to the moon, and back, twelve times each year.”
Signatories in this effort represent all aspects of the global fashion and apparel industry, from those working with materials and textiles to industry groups focused on sustainability, including USFIA Partner iHKiB. You can read the letter here.
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USFIA Testifies at AGOA Eligibility Review Hearing
On Monday, the Office of the U.S. Trade Representative held a virtual public hearing on the annual review of the eligibility of sub-Saharan African countries to receive AGOA benefits. USFIA President Julia Hughes testified at this hearing on the important role that the fashion industry has played in fostering sub-Saharan Africa’s long-term economic potential and the impact of Ethiopia’s loss of benefits to the sourcing in the entire region, not just Ethiopia. USFIA supports early renewal for the AGOA program and swift action by USTR to restore AGOA benefits to Ethiopia once the conditions on the ground meet the AGOA criteria. You can read our testimony filed in advance of the hearing here. Gregory Poole, Special Advisor and Former Chief Supply Chain & Sourcing Officer for The Children’s Place, Inc. also advocated for renewing AGOA, pointing to the economic development and employment benefits to the garment industry, which is largely made up of women.
There were also representatives from Mauritius and Somalia testifying at this hearing. Somalia and Mogadishu requested consideration for AGOA benefits this year. Mauritius, as a country that could potentially graduate from the AGOA program, has requested a change to U.S. law that would include a process to negotiate a free trade agreement with the U.S. before graduation from the AGOA program.
“Graduating based on income thresholds may not accurately reflect a country's development, especially for vulnerable small countries that are highly vulnerable to trade shocks due to their limited economic size and exposure to external shocks. This approach could lead to uncertainty and hinder long-term growth,” Mauritian Ambassador Purmanund Jhugroo said. “Alternatively, we propose an approach based on export competitiveness. Instead of graduating a country, we suggest graduating sectors with global competitiveness in the U.S. market relative to U.S. imports. This would encourage countries to build competitive industries and maintain AGOA benefits while developing other sectors.”
In a Federal Register notice that will be posted tomorrow, USTR requests post-hearing comments. The deadline is August 8, 2023 at 5pm EDT.
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USFIA Testifies at ITC Hearing on Apparel Export Competitiveness
USFIA President Julia Hughes and USFIA Washington Counsel David Spooner were among those testifying at the U.S. International Trade Commission hearing on Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States. As a reminder, this investigation covers the competitiveness of the apparel industries in Bangladesh, Cambodia, India, Indonesia, and Pakistan. The hearing lasted for more than nine hours and included witnesses from the countries as well as industry groups. USFIA appeared on the second panel along with Kim Glas from NCTO (witness statement), Eric Gottwald from the AFL-CIO (witness statement), Sophal Ear from the ASU Thunderbird School of Global Management (witness statement), Jason Judd with the Global Labor Institute (witness statement), and Beth Hughes from AAFA (witness statement).
USFIA’s testimony highlighted the key factors that sourcing executives from apparel brands and retailers analyze when choosing suppliers: global risk assessments, sustainability, vertical integration, scale, logistics and the traditional elements of quality, speed and cost.
About
The United States Fashion Industry Association (USFIA) is dedicated to fashion made possible by global trade.
USFIA represents brands, retailers, importers, and wholesalers based in the United States and doing business globally. Founded in 1989, USFIA works to eliminate tariff and non-tariff barriers that impede the fashion industry’s ability to trade freely and create jobs in the United States.
Headquartered in Washington, DC, USFIA is the voice of the fashion industry in front of the U.S. government as well as international governments and stakeholders. With constant, two-way communication, USFIA staff and counsel serve as the eyes and ears of our members in Washington and around the world, enabling them to stay ahead of the regulatory challenges of today and tomorrow. Through our publications, educational events, and networking opportunities, USFIA also connects with key stakeholders across the value chain including U.S. and international service providers, suppliers, and industry groups.
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News
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Resolution to Resume U.S.-Taiwan Relationship Reintroduced in the House
- Information
- 11 February 2025
Fashion Intel & Analysis
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Events
Reports
2024 USFIA Fashion Industry Benchmarking Study
This is the eleventh USFIA Benchmarking Survey and again fashion industry sourcing executives face a litany of challenges. Concern over the economy and inflation, as well as eliminating forced labor, continue to be top concerns in the U.S. fashion industry. This year's respondenents also report an elevated level of concern about the impact of shipping and supply chain disruptions as well as geopolitical tensions.
New for this year is a sharp increase in sourcing executives who are concerned about the protectionist trade policy agenda in the United States, with 45% ranking it a top-5 business challenge, compared with just 15% last year.
Download the complete study here, and see the highlights below:
This year's survey respondents were more optimistic than last year, bucking a 2-year trend.
India is the new rising star for Asian sourcing bases, surpassing Bangladesh for the first time and landing in the top spot for where companies want to expand sourcing.
This year, survey respondents underscore the importance of immediate renewal of AGOA before its expiration in September 2025 and extending the agreement for at least another ten years.
2024 Mid-Year Sourcing Trends & Outlook Report
USFIA's 2024 Mid-Year Sourcing Trends & Outlook Report is out. Members can log-in to the website to download it here.
The top 4 sourcing trends in the mid-year report are:
- China remains the top supplier even with diversification.
- Asian apparel suppliers continue to dominate sourcing.
- Average unit values for apparel continue to fall.
- Despite high duty rates, FTAs and preference programs remain underutilized.
The mid-year report includes a special section with global trade data prepared by Dr. Sheng Lu, professor in the Fashion and Apparel Studies Department at the University of Delaware. Dr. Lu's findings include the latest changes in China's market share of world textile and clothing exports.
Pattern #2: While China remained the world’s largest clothing exporter in 2023, rising geopolitical tensions and Western fashion companies’ ongoing de-risking efforts pose increasing challenges to its export outlook.
Top U.S. Apparel Suppliers YTD 2024 by Quantity
When it comes to apparel, Asian suppliers continue to dominate the U.S. market.
The top seven suppliers ship 76% of total apparel imports. We also see more consolidation of imports from the largest apparel suppliers.
China and Vietnam are the only countries with a double-digit market share, and they supply just under one-half (49.8%) of apparel imports.
Partners
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