Fashion made possible by global trade
Fashion made possible by global trade
Fashion made possible by global trade
Advocacy
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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 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.
Learn More About USFIA Learn About the Fashion Industry Attend Our Events
News
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Waging a Global Trade War Alone: The Cost of Blanket Tariffs on Friend and Foe
- Information
- 11 October 2024
Fashion Intel & Analysis
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Economists Project Gradual Recovery for Global Goods Trade
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- 11 October 2024
Fashion Intel & Analysis
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CBP Extends Comment Period on Proposed Forced Labor Portal/Case Management System
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- 11 October 2024
Fashion Intel & Analysis
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CBP Modifies WRO for Disposable Gloves Produced by Malaysia’s Brightway Group
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- 11 October 2024
Fashion Intel & Analysis
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USTR Shares Highlights from Ambassador Tai Interviews about the Trade Agenda with AP and AFP
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- 09 October 2024
Fashion Intel & Analysis
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CBP Shares Hurricane Helene and Milton Response Plans
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- 09 October 2024
Fashion Intel & Analysis
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The Hill Op-Ed: Donald Trump’s tariff plan could bring us back to the 1930s
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- 08 October 2024
Fashion Intel & Analysis
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USMX and ILA Begin Long Road to New Master Contract
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- 08 October 2024
Fashion Intel & Analysis
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
USFIA Premier Partner
USFIA Customs Broker Partner
USFIA Sourcing Partner
USFIA Technology Partner
USFIA Supply Chain Leader
USFIA Corporate Social Responsibility Sponsor
