USFIA - United States Fashion Industry Association

Associations Press Congress to Renew GSP 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.

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.

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.

USFIA Files Comments in Favor of Digital Labeling Petition

Last week, USFIA filed comments with the Federal Trade Commission (FTC) in support of AAFA’s petition to allow digital care labels and the proposed regulatory language suggested. Our comments highlight that this is a global industry with different labeling requirements for different markets.

Digital labeling would allow firms to provide detailed product information for multiple countries in a readily accessible manner, such as using a simple QR code or other digital tools, resulting in reduced labels and label size. This approach also would enable firms to provide updated information to consumers, something which is not realistically available under the current system.

Finally, it is sometimes the case that over time labels become illegible. The likelihood of that happening with a digital label is diminished. Allowing the use of digital labels would establish a more harmonized approach to labeling as other countries, such as the EU, Singapore and Australia, have proposed or enacted digital labels.

Most of the comments filed were in support of AAFA’s petition, including those from USFIA members Ralph Lauren and Taiwan Textile Federation, as well as the U.S. Chamber of Commerce, the PoliticallyInFashion Council, the National Cotton Council of America, and several apparel brands.

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.

USFIA Joins Industry Letter and Files Comments on Nicaragua

Yesterday USFIA filed comments with the Office of the U.S. Trade Representative on the Administration’s proposed Section 301 actions against Nicaragua and joined an industry letter to USTR Jamieson Greer urging caution and consideration for any actions taken again the country. In the submission, USFIA acknowledges the Trump Administration’s efforts to target the regime of Nicaraguan President Daniel Ortega but notes that Ortega has made efforts to diminish the country’s apparel sector. The comments also note the importance of Nicaragua to Western Hemisphere textile and apparel supply chains to CAFTA and jobs in the U.S. USFIA writes, “USFIA would encourage USTR to avoid sweeping measures that could risk further destabilizing the region. USFIA would also urge USTR to provide U.S. apparel and retail brands ample time to adjust to any measures adopted pursuant to Section 301.”

USFIA Joins Industry Letter Asking Trump Administration to Stop Stacking Tariffs on Consumer Products

Yesterday USFIA joined with thirteen other industry associations asking the Trump Administration to stop charging multiple tariffs on consumer products. As USFIA members know, one garment or pair of shoes can be charged the MFN tariff, a 301 tariff (from the first Trump Administration) and today's IEEPA tariffs.

We hope that the Administration will take a fresh look at the policy and will decide to not assess additional tariffs on consumer products.

"We support the administration’s policy to “unstack” tariffs in certain cases to ease the financial and compliance burden on industries and consumers. This includes the Section 232 steel and aluminum and auto tariffs, along with the negotiated agreements with Japan and the European Union (EU). The EU framework also capped tariffs on pharmaceuticals to prevent downstream impacts.

"However, whether other sectoral tariffs are meant to stack on applicable MFN, reciprocal, and Section 301 tariffs or be capped at the highest rate remains unclear. In the market today, as an example, the stacked standard and reciprocal tariffs are as high as 52 percent on some babies’ clothes, and as high as 87.5 percent on certain children’s shoes. Our associations seek clarity on this policy to unstack these tariffs. We support the administration’s existing policy for certain goods that face multiple tariffs and its finding that “such stacking exceeds what is necessary to achieve the intended policy goals” [1]. We request that you apply that same policy to consumer products manufactured or imported by our member companies."

USFIA Joins Letter to Congress Requesting Support for Buy American Cotton Act

USFIA joined a group of 76 organizations in a letter organized by the National Cotton Council for Members of the House of Representatives yesterday asking them to cosponsor the Buying American Cotton Act (H.R.7230), which was introduced by Greg Murphy (R-NC) and Terri Sewell (D-AL) on January 22, 2026. The legislation “establishes market-based incentives for these end-stage retailers to sell apparel and other goods produced, in whole or in part, from U.S. cotton.” The letter notes that it would increase demand for U.S. cotton and improve cotton supply chain efficiencies through these incentives. The coalition includes trade associations and a dozen major brands, including several USFIA members.

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.

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.