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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

Sourcing

  • 2023 Sourcing Trends and Outlook Report

    This week, the U.S. Fashion Industry Association published our tenth annual Sourcing Trends and Outlook report (available free of charge to USFIA members and affiliates), covering five main trade data trends and providing a peek into the “crystal ball” at the future of textile, apparel, and fashion sourcing and trade policy. 

    This year’s top trend: While China remains the major supplier to the U.S. market, they are no longer a dominant supplier. This finding tracks with the American Chamber of Commerce in China’s 25th annual China Business Climate Survey report that we covered last week. The AmCham China report found that, for the first time, companies are less willing to invest in China and China’s strategic priority is declining.

    Picture1

    So, if China is no longer a dominant supplier in the U.S., who is challenging them? 

    TĂĽrkiye is the new top supplier of U.S. fabric imports, with a 15% share by quantity. China ranks as the number two supplier, shipping 13% of U.S. fabric imports by quantity. 

    If there is a success story from the COVID-19 pandemic, it’s the Turkish textile and apparel industry’s agility, allowing it to meet the nearshoring and flexibility in production with no-stock that the “new normal” required of the global apparel supply chain. U.S. imports from TĂĽrkiye grew rapidly during the pandemic, going from the tenth largest supplier of textiles and apparel in 2020 to the sixth largest in 2021 and now the third largest in 2022. 

    Picture2

    USFIA’s Sourcing Partner, IHKIB, also shared the priorities for the Turkish apparel industry in 2022 and 2023. Here’s what they had to say:

    The Turkish apparel industry is also far ahead of its competitors in many areas including sustainability and an eco-friendly approach to production. Now, with the announcement of the European Green Deal, another traditional competitive feature of the industry will fit to the emerging sustainable global apparel supply chain: good-quality durable apparel goods with less resource-consuming, but still stylish, materials!

    The apparel industry of TĂĽrkiye has recently announced the roadmap towards sustainability and green production, including digitalization and the establishment of a circular supply chain in apparel with our esteemed international partners. All the efforts of the industry are to increase the added value in production, the sustainable design and fashion capability of the industry, and rise the unit export price in apparel exports.

    Interested in our other top sourcing trends, like where to find new sourcing opportunities? Our Sourcing Trends and Outlook report is free to all USFIA members and affiliates. Contact us to join today!

  • African Growth & Opportunity Act (AGOA)

    IThe African Growth & Opportunity Act (AGOA) was enacted in May 2000 to expand U.S. trade with Sub-Saharan Africa and stimulate the economies of the participating countries. Each year, the President of the United States is eligible to determine the countries eligible for AGOA benefits, which include trade preferences that essentially allow goods produced in the eligible countries to enter the United States duty-free.  There are currently 40 countries eligible for AGOA benefits. The three most recently eligible countries are Cote d’Ivoire, Guinea, and Niger, all of which held democratic elections.

    The AGOA program has brought significant benefits to the participating countries, but it is scheduled to expire very soon in September 2015. The program includes a “third-country fabric benefit,” which allows apparel producers in AGOA-eligible countries to use third-country fabric and still get duty-free treatment in the United States. The benefit was initially scheduled to expire on September 30, 2012, two years before the expiration of the program. On August 2, 2012, Congress passed legislation renewing the benefit until September 2015, when the program expires. The legislation also adds South Sudan as a beneficiary country under AGOA. More information on the legislation is available from the House Ways & Means Committee here.

    President Obama signed the legislation on Friday, August 10, 2012. The AGOA extension and the Burma sanctions extension are effective immediately. The CAFTA-DR fixes will go into effect 60 days after the publication of the Presidential Proclamation and the notification of the Organization of American States (OAS), on or around October 15, 2012.

    USFIA Position

    The United States Association of Importers of Textiles & Apparel (USA-ITA), now USFIA, was an active voice in the effort to renew the AGOA third-country fabric benefit. 

    On March 9, 2012, USA-ITA (now USFIA) joined a group of apparel and retail associations in sending a letter to the leadership of the U.S. Senate Finance Committee and the U.S. House Ways & Means Committee calling for the renewal of the Third-Country Fabric Provision of the African Growth & Opportunity Act (AGOA). The letter explains that the provision “helps U.S retailers achieve lower costs and diversify their supply chains,” as well as “solidifies a broader strategic partnership with the United States based on development through trade.” 

    On June 13, 2012, USA-ITA (now USFIA) joined a multi-industry group of trade associations and other business organizations in sending a letter to the leadership of the U.S. Senate Finance Committee and U.S. House Ways & Means Committee again calling for quick renewal of the Third-Country Fabric Provision of AGOA, along with passing the CAFTA "fixes." The letter identifies consequences of not renewing AGOA: 

    Moreover, the impact is by no means limited to sub-Saharan Africa. In fact, the delay in renewing this non-controversial measure, which is at the core of the AGOA apparel provisions, has already forced many U.S. companies to shift their 3rd and 4th quarter 2012 orders to other countries to avoid uncertainties. 

    The delay in renewing this provision is increasingly sending the wrong message to African countries on the eve of the largest annual U.S.-Africa summit — the AGOA Forum, which will be held in Washington on June 14-15. Inaction is difficult to justify given that the Third Country Fabric provision has proven beneficial to U.S. businesses and non-controversial in both Congress and in the U.S. business community.

    Regardless, as uncertainty grows over renewal, African apparel producing countries have already experienced a 30% drop in apparel orders since January 2012. This decline in orders has already led to the loss of thousands of jobs in Africa, with hundreds of thousands more hanging in the balance.

    On July 25, 2012, USA-ITA (now USFIA) also sent letters to U.S. Senators Tom Coburn (R-OK) and Robert Menendez (D-NJ), urging them to drop their holds on the AGOA extension. 

  • Asia-South Pacific Trade Preferences Act

    The Asia-South Pacific Trade Preferences Act (S.1443) is a bill that would provide duty-free, quota-free benefits to 13 of the world’s least-developed countries (LDCs) in Asia and the South Pacific, including Afghanistan, Bangladesh, Cambodia, East Timor, Maldives, and Nepal. U.S. Senator Dianne Feinstein (D-CA) introduced the bill on July 28th, 2011, and it has been referred to the U.S. Senate Finance Committee. During the Asia Pacific Economic Cooperation (APEC) meetings in Hawaii in November 2011, Senator Feinstein urged Congress to expand trade benefits for these LDCs. “We should help these countries help themselves by opening the U.S. market to their exports as we have done for other developing countries in the past,” she said in a statement.

    On February 28, 2013, Senator Dianne Feinstein introduced the Asia-South Pacific Trade Preferences Act of 2013 and it was sent to the Senate Finance Committee for review.

    USFIA Position

    The United States Fashion Industry Association (USFIA), formerly the United States Association of Importers of Textiles & Apparel (USA-ITA), is a strong supporter of removing barriers to trade, and specifically supports the Asia-South Pacific Trade Preferences Act because it would address current gaps in U.S. trade preference programs and create a foundation for sustainable trade partnerships with some of the poorest developing countries.

    On February 17, 2012, USA-ITA (now USFIA) joined fellow apparel and retail associations in sending a letter to Senator Feinstein expressing support for the bill and urging her to advance it in Congress. 

    On February 28 2012, Senator Feinstein circulated the letter with a “Dear Colleague” letter urging her colleagues to co-sponsor the bill, available here.

  • Industry Roundtable with USTR

    On December 19, 2013, USFIA President Julia K. Hughes, Washington Counsel David Spooner, and member companies participated in an industry roundtable discussion with Florie Liser, Assistant U.S. Trade Representative for Africa, and Gail Strickler, Assistant U.S. Trade Representative for Textiles & Apparel, to discuss impact and recommendations for extension of the African Growth & Opportunity Act (AGOA) in 2014.  

  • U.S. and African Companies Call for Immediate Renewal of AGOA

    USA-ITA joins with several other industry groups, including the ACTIF (African Cotton and Textile Industries Federation), in asking U.S. Congress to take action as soon as possible to renew the African Growth and Opportunity Act (AGOA). AGOA is scheduled to expire on September 30, 2015. In 2012, Congress waited to renew AGOA until the last minute, creating uncertainty that forced some companies to cut back on orders.  The coalition hopes that this time the Congress will act early and extend the duty-free benefits for a longer time.  The groups ask for the following:  

    1.       Immediate Renewal of AGOA.  
    2.       Long-term Renewal of AGOA, at least fifteen years.  
    3.       Extend Third Country Fabric benefits for the same length of time as full AGOA extension.  
    4.       Grant Third Country Fabric Benefits to All AGOA beneficiaries

    To read the full statement, click here.

  • USA-ITA Attends AGOA Breakfast on Capitol Hill

    On August 1, 2013, USA-ITA (now the United States Fashion Industry Association) attended a breakfast on Capitol Hill hosted by House Africa Subcommittee Ranking Member Karen Bass (D-CA). The breakfast featured discussions on President Obama’s recent trip to Africa and what to expect from the upcoming AGOA forum, as well as the AGOA Ambassadors’ report. Of particular note, U.S. Trade Representative for Africa Florie Liser, who has spoken at USA-ITA events in the past, welcomed the views of all AGOA stakeholders and discussed the importance of apparel and footwear in particular. She said the Administration recognizes the need for seamless renewal, adding that she has heard from buyers that the industry needs expedited renewal and certainty in order to continue sourcing from the AGOA region. Additional speakers included Grant T. Harris, Special Assistant to the President & Senior Director for African Affairs at the White House; Stephanie Peters, Director of Federal Government Affairs for Microsoft; and the Ambassadors of Nigeria and Mauritius. All speakers, as well as attending Members of Congress including Charlie Rangel (D-NY), Gregory Meeks (D-NY), and Sheila Jackson Lee (D-TX), stressed the importance of quick renewal of AGOA and continued support of our trading partners in Africa. 

  • USFIA Calls for Immediate Renewal of AGOA

    On July 31, 2014, the United States Fashion Industry Association (USFIA) posted a statement calling for the immediate, long-term renewal of the African Growth & Opportunity Act (AGOA), as well as long-term renewal of the third-country fabric provision and extension of the third-country fabric provision to all AGOA beneficiaries. The statement is available here.

  • USFIA Contributes to USITC Report on AGOA

    The United States International Trade Commission (USITC) has released a report titled, “AGOA: Trade and Investment Performance Overview.” The report describes, reviews, and analyzes the trade and investment performance of African Growth & Opportunity Act (AGOA) beneficiary countries from 2000 to 2013. Of particular note, “The report’s findings suggest that AGOA’s impact on foreign direct investment (FDI) has been strongest in the apparel industry. Overall, the program’s trade benefits and eligibility criteria appear to have motivated AGOA beneficiary countries to improve their business and investment climates. AGOA has had a positive impact on FDI inflows, particularly in the textile and apparel sector in Kenya, Lesotho, Mauritius, Swaziland, and Botswana, and also in South Africa’s automotive industry. Some studies, however, suggest that reciprocal trade agreements may have certain advantages over unilateral trade preference programs such as AGOA.”

    USFIA contributed information to the report (page 322):

    In a written submission, Julia Hughes, President, United States Fashion Industry Association

    (USFIA), said that USFIA represents textile and apparel brands, retailers, importers, and wholesalers based in the United States. She indicated that she would concentrate on two of the investigations, Nos. 332-542, AGOA: Trade and Investment Performance Review, and 332-545, U.S. AGOA Rules of Origin: Possible Changes to Promote Regional Integration and Promote Exports to the United States. USFIA member companies, according to Ms. Hughes, continue to source from textile and apparel producers in SSA. Ms. Hughes noted that these companies want to maintain partnerships on the African continent and she made the following recommendations: (1) AGOA should be renewed on a seamless basis as soon as possible and no later than 2014; (2) AGOA should be reauthorized for a 15-year period; (3) the third-country fabric provision should be renewed for the full duration of the AGOA renewal; (4) all AGOA beneficiary countries should benefit from AGOA’s third-country fabric provision; and (5) trade capacity building programs should be expanded.

  • USFIA Files Comments on AGOA Eligibility Review

    On September 2, 2016, the United States Fashion Industry Association (USFIA) and other apparel and retail associations filed comments on the African Growth and Opportunity Act (AGOA) eligibility review. We said that we support the renewal of AGOA benefits for all countries that are currently eligible for benefits. Our statement is available here

  • USFIA Files Comments to USITC on AGOA

    On January 21, 2014, the United States Fashion Industry Association (USFIA) filed comments with the U.S. International Trade Commission (USITC) for their investigation on trade and investment performance as well as possible changes to the African Growth & Opportunity Act (AGOA). In our comments, drafted with assistance from USFIA Washington Counsel David Spooner with Squire Sanders, we recommend prompt and long-term renewal; long-term renewal and expansion of the Third-Country Fabric provision; and expanded trade capacity-building programs.

  • USFIA Joins Letter to USTR on AGOA

    On March 25th, the United States Fashion Industry Association (USFIA) joined other industry associations in sending a letter to Florie Liser, Assistant U.S. Trade Representative for Africa, following up on our recent industry roundtable on the African Growth & Opportunity Act (AGOA). The letter provides the results of the member industry survey about additional elements or benefits the U.S. could provide to incentivize additional investment in AGOA countries, and the impact if AGOA is not renewed in a timely manner and for a long term. The letter is available here.

  • USFIA Joins Letter Urging House to Support Trade Preferences Legislation

    On June 3, 2015, the United States Fashion Industry Association (USFIA) joined a coalition letter urging the House to pass the Trade Preferences Extension Act of 2015. This legislation was approved by the Senate 97 to 1 in May. The legislation includes a 10-year extension of the African Growth & Opportunity Act (AGOA), retroactive renewal of the Generalized System of Preferences (GSP), extension through 2025 of the Haiti trade preferences program, and HTS breakouts for certain performance outerwear and athletic footwear. The letter is available here

  • USFIA Joins Letter Urging House to Support Trade Preferences Legislation

    On June 3, 2015, the United States Fashion Industry Association (USFIA) joined a coalition letter urging the House to pass the Trade Preferences Extension Act of 2015. This legislation was approved by the Senate 97 to 1 in May. The legislation includes a 10-year extension of the African Growth & Opportunity Act (AGOA), retroactive renewal of the Generalized System of Preferences (GSP), extension through 2025 of the Haiti trade preferences program, and HTS breakouts for certain performance outerwear and athletic footwear. The letter is available here

  • USFIA Joins U.S. & African Companies in Call for Immediate Renewal of AGOA

    On August 13th, the United States Fashion Industry Association (USFIA) joined 6 other fashion and retail associations in the United States and Africa in releasing a statement calling for immediate renewal of the African Growth & Opportunity Act (AGOA). In the statement, the groups also call for long-term renewal of at least 15 years, as well as long-term renewal of the third-country fabric provision and application of the provision to all AGOA beneficiaries. The statement will be posted on all organizations' websites and distributed to the media, as well. Following the recent U.S.-Africa Leaders Summit in Washington, D.C., AGOA continues to be a top priority for USFIA and many of our members and we will remain engaged on the issue. The full statement is available here and our press release is available here.

  • USFIA Meets with CNTAC in New York City

    USFIA Chairman Michael Singer of Macy’s and USFIA President Julia Hughes participated in the opening ceremony for the China Textile and Apparel Trade Show at the Javits Center in New York City. They met with CNTAC Vice President Xu Ying Xin to discuss the impact of the current trade uncertainty on sourcing partnerships between the United States and China. They also toured the TexWorld show floor and attended a fashion show sponsored by the Shenzhen Underwear Association. Click here to read more about it.

  • USFIA Meets with Indonesian Trade Minister

    United States Fashion Industry Association (USFIA) President Julia Hughes met with the Indonesian Trade Minister and a delegation of textile and apparel companies visiting Washington, D.C. The delegation was visiting to discuss enhanced trade opportunities with the United States, especially with expanded sales of U.S. cotton to the Indonesian industry. The Indonesian government officials were also meeting with Trump Administration officials to make the case for Indonesia keeping its Generalized System of Preferences (GSP) status.

  • USFIA Publishes Op-Ed on AGOA in Apparel Magazine

    On July 29, 2014, USFIA President Julia K. Hughes published an op-ed in Apparel Magazine on the need to renew the African Growth & Opportunity Act (AGOA) immediately and for the long term. An excerpt:

    At a time when Congress seemingly can't agree on anything, AGOA is a non-controversial program with nearly universal support as one that's good for business in the U.S. and good for economic growth in sub-Saharan Africa. Unfortunately the clock has been ticking for the program, which is scheduled to expire on Sept. 30, 2015, but Rep. Nunes' statement and the scheduling of the long-awaited hearings are signs it finally could be renewed.

    But while there's still one year left, time has all but run out before the fashion industry will slow down orders in advance of the scheduled expiration, so let's hope it's renewed quickly.

    "The only way we can continue to source in sub-Saharan Africa is if the duty-free status is maintained," explains the head of international trade and customs at one of the United States Fashion Industry Association's (USFIA) member companies, a small importer and manufacturer of niche women's and children's apparel, who shared the company's story of sourcing in AGOA and the problems that will arise if the act is not renewed soon.

    Currently, 40 sub-Saharan African countries are eligible for the program, which has the purpose of facilitating the region's economic growth and integration through two-way, duty-free trade with the U.S.

    The program includes a provision called the third-country fabric benefit, which allows apparel producers in most beneficiaries to use third-country fabric (or, fabric from any other country in the world) and still get duty-free treatment in the United States. According to the U.S. International Trade Commission (USITC), in 2013, 98.48 percent of apparel imported into the U.S.from AGOA-eligible countries was duty free. This is a significant savings for companies sourcing in a region that would otherwise be cost-prohibitive, while also providing jobs and economic opportunities in the region.

    But many companies have already taken action to either reevaluate their sourcing plans, or even pull out from the region because they simply can't afford to do business there without the duty savings, which are still uncertain, at best.

    The entire op-ed is availabe on the Apparel Magazine website.

  • USFIA Urges House to Quickly Approve AGOA Renewal

    On May 18th, the United States Fashion Industry Association (USFIA) joined a coalition statementurging quick, long-term renewal of the African Growth & Opportunity Act (AGOA). The signatories included U.S. fashion and retail advocacy groups as well as the African Cotton & Textile Industries Federation (ACTIF). As you know, the Senate passed AGOA renewal, and the House is expected to consider it, soon. The statement is available here, and was sent to press, too.

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

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:

 2024 USFIA Benchmarking Report Figure 1-1B


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 USFIA Benchmarking Report Figure 3-9

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:

  1. China remains the top supplier even with diversification.
  2. Asian apparel suppliers continue to dominate sourcing.
  3. Average unit values for apparel continue to fall.
  4. 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.

 China market share of global textile and apparel exports

https://www.datawrapper.de/_/ERwSE/

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.

Chart displaying Top U.S. Apparel Suppliers YTD 2024 by Quantity

 

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