Textile Development Memo for June 14, 2011

In This TDM:

• Ways & Means to Hold Mock Markup Next Week of Three Pending FTAs
• ProgressiveEconomy Paper Highlights Importance of Reducing Tariffs on Apparel and Footwear
• USTR Says Colombia Meets June 15 FTA Labor Milestone

By Sadie Bargeron

In 2018, the Fashion Benchmarking Study of 2018 reported that China accounted for 11-30% of companies’ total sourcing value in the US, in comparison to a previous 30-50%. In short, these tariffs are causing fast-fashion brands to diversify their supply chains.

Click here to read the full article on ORDRE’s website.

By Arthur Friedman

Six major trade associations in the U.S. and Canada are urging the Bangladesh government to eliminate import duties on safety equipment, which would vastly bring down the costs related to remediation in garment factories and improve factory safety.

Executives with the American Apparel & Footwear Association, National Retail Federation, Retail Industry Leaders Association, U.S. Fashion Industry Association, Canadian Apparel Federation and Retail Council of Canada wrote to Prime Minister Sheikh Hasina Wazed and said, “The elimination of these duties would greatly accelerate the current efforts to improve worker safety in Bangladesh.”

Click here to read the entire article on the WWD website.

By Kali Hays

For now, Canada and Mexico, the other countries involved in NAFTA, are exempt from the steel and aluminum tariffs.

But the macro effects of the tariffs are also a concern and a spokeswoman for the U.S. Fashion Industry Association said, “We know these tariffs will be catastrophic for the U.S. economy and jobs.”

“We’re not being partisan or subjective, it’s trade policy 101, and we can expect widespread net job loss in the U.S. as a result, according to early studies, not to mention regressive taxes on American consumers,” the spokeswoman said. “While our members don’t import a lot of steel and aluminum, these tariffs could result in disastrous consequences for them.”

Click here to read the entire article on the WWD website.

U.S. tariffs on imports from China will disrupt the global supply chain in the fashion industry and damage the entire sector, the head of a U.S. fashion industry association said.

"From feathers to textiles to furniture, we see disruption and uncertainty in the industry," Julie Hughes, president of the United States Fashion Industry Association (USFIA), told Xinhua during a recent interview. "In most cases, there are no alternative sources of supply for U.S. companies."

Click here to read the entire article on the Xinhua website.