On February 3, 2016, the TPP Apparel Coalition, which includes the United States Fashion Industry Association (USFIA), applauded the signing of the TPP in Auckland, New Zealand. The coalition's statement is available here.

On August 30, 2016, the United States Fashion Industry Association (USFIA) and the Footwear Distributors & Retailers of America (FDRA) published an op-ed in the Washington Examiner about the Olympics, and how Team USA’s big wins emphasize how the United States is a winner in the pool, on the mats, on the courts, and around the track—but not on trade: 

During the Olympics, we are often reminded of the innovation that drives our industries — for example, the Nike Flyknit debut during the 2012 London games, the use of 3D printing to engineer better running shoes for Rio, lighter cleats, more breathable fabrics for soccer and basketball uniforms and sunglasses designed to reduce the effects of wind. 

Yet this clothing and footwear comes at a high price. While the U.S. government taxes all products that cross the U.S. border at just 1.4 percent on average, it places import taxes averaging 11 percent on footwear and 13 percent on apparel. 

This limits the ability of American companies to innovate and drives up the cost of shoes and clothes for hardworking individuals and families. 

Read the op-ed at the Washington Examiner.

On February 12, 2016, USFIA President Julia K. Hughes joined Mara Burr, former Deputy Assistant U.S. Trade Representative for South and Central Asia, in publishing an op-ed in the Sourcing Journal on the broader impact of the Trans-Pacific Partnership (TPP). The op-ed was published during the ASEAN Summit in California, and discusses the geopolitical implications of the historic agreement. The op-ed is available on the Sourcing Journal website. 

Following the announcement that the Trans-Pacific Partnership (TPP) Ministers have concluded negotiations and reached a final agreement, the United States Fashion Industry Association (USFIA) released a statement recognizing the conclusion of the deal and expressing hope that the agreement will benefit the fashion industry:

“The Trans-Pacific Partnership represents an important opportunity for American fashion brands, retailers, importers, and wholesalers, who are already doing significant business in several TPP partner countries,” says Julia K. Hughes, President of USFIA. “On behalf of our members, thank you to U.S. Trade Representative Michael Froman and his team for their many years of hard work to conclude this agreement.” 

“The fashion industry has been eagerly awaiting the completion of this agreement and we look forward to seeing the final text to see how it can benefit our members,” continued Hughes. “We remain hopeful that the TPP will indeed be a high-standard agreement that recognizes the 21st-century global value chain and economic contributions of these companies, which work hard to create high-quality jobs in the United States and affordable, high-quality apparel products for American families,” she concluded. 

According to the 2015 USFIA Fashion Industry Benchmarking Study, which we released in June, we found that our members already source from five TPP partner countries: Vietnam, Peru, Mexico, Malaysia, and the United States. Nearly 80 percent of respondents said they expect the TPP to affect their business practices. However, the level of impact depends on the rules of origin and market access provisions; 83 percent called for abandoning the strict “yarn-forward” rule of origin, and 45 percent hoped the TPP short-supply list would be expanded. 

“We understand the final agreement contains a yarn-forward rule of origin and limited short-supply list, though we remain hopeful it also will include many opportunities for fashion brands, retailers, importers, and wholesalers to expand their global businesses,” concluded Hughes. 

The full statement is available on our website. 

From January 13-15, 2016, the U.S. International Trade Commission (ITC) held three days of hearings on the “Trans-Pacific Partnership Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors.” On the last day of hearings, representatives from major U.S. fashion, footwear, retail, and cosmetics associations testified about the impact of the TPP on the industries. All of the organizations expressed support for TPP, but many also noted the missed opportunities, especially for textiles and apparel. In her testimony, USFIA President Julia K. Hughes expressed the association’s support for “better market access, not just to boost U.S. exports or U.S. imports, but to facilitate global trade.” However,

USFIA continues to believe that the United States should change its negotiating stance to recognize the global value chain and the jobs created by American brands, retailers, and importers. Unfortunately, the TPP falls short. There are certainly benefits in the agreement for USFIA member companies, but the agreement maintains the basic restrictive provisions that have existed since the negotiation of NAFTA in the early 1990s, and which ignore the international scope of the fashion industry… 

From this perspective, USFIA and our members applaud the conclusion of the TPP agreement. Nevertheless, we remain disappointed that the negotiators missed the opportunity to craft an agreement that recognizes the way that fashion brands and retailers do business. The lengthy duty phase-outs for many key products, and the reliance on a yarn-forward rule of origin, limit opportunities for our members to reach new consumers in the TPP countries and limit our opportunities to create jobs in the United States. 

Hughes expanded on the benefits and opportunities in the agreement in her testimony, which is available for download here.

For the latest on the status of the TPP, we encourage you to attend USFIA Fashion Forward: San Francisco on February 12th, where Joshua Teitelbaum, Deputy Assistant Secretary for Textiles, Consumer Goods, & Materials at the U.S. Department of Commerce, will provide an update

According to Hai Quan (Customs) newspaper, US Fashion Industry Association President Julia K Hughes said many US companies were willing to seek supply sources from nations joining the TPP agreement once it took effect.  

Vietnam was ranked highest in terms of its ability to draw new businesses, Hughes said, so she advised Vietnam utilize its new opportunities.

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

By Kristi Ellis

Julia K. Hughes, president of the U.S. Fashion Industry Association, said, “The Trans-Pacific Partnership represents an important opportunity for American fashion brands, retailers, importers and wholesalers who are already doing significant business in several TPP partner countries.”

Hughes said USFIA’s benchmarking study released in June showed its members currently source from five TPP partner countries: Vietnam, Peru, Mexico, Malaysia and the U.S. Nearly 80 percent of respondents said they expect the TPP to affect their business practices.

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

By Kristi Ellis

While many high-volume “sensitive” products will be subject to longer tariff phaseouts, with some having to wait 12 years for duty elimination, many were also granted duty-free treatment on Day One. Of note to women’s wear firms, dresses and skirts in all fabrics, ranging from cotton to rayon and wool, are set to become duty-free on the first day of implementation, according to Julia Hughes, president at the U.S. Fashion Industry Association, who was briefed by top U.S. trade officials at her group’s board meeting in New York on Thursday.

“In our world we live and die season by season,” Hughes said. “If you are talking about 14 years until you see some of the benefits and products going to full duty-free, that’s a long time. What is important right now is what will be immediately duty-free, and dresses and skirts in all fabrics that go duty-free on Day One will help women’s wear companies.”

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

By Kristi Ellis

Julia Hughes, president at the U.S. Fashion Industry Association, said it is a “way to keep the conversation going and I think that is important.”

“It is a very positive step,” Hughes said. “We are all pretty happy to have something positive to talk about. The fact is this is some progress when in some ways these have been the darkest days for trade with the continued antitrade rhetoric from the presidential candidates and indeed from other interest groups as well.”

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

By Kristi Ellis

The percentage of fashion companies expecting to strongly increase sourcing from Vietnam fell significantly, as uncertainty related to the ratification of the Trans-Pacific Partnership trade pact loomed large, a new U.S. Fashion Industry Association survey revealed Wednesday.

The survey included 30 of the largest U.S. retailers, apparel brands, importers and wholesalers, encompassing fashion firms, department stores and lifestyle brands selling a range of products from apparel and accessories to footwear and home goods.

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

By Kristi Ellis

Julia Hughes, president at the U.S. Fashion Industry Association, said: “I won’t claim that we’re optimistic — but it’s not dead. As the campaign plays out over August and as we get into full election season in the fall, we’ll have to see where the dialogue is going. There have been a number of press reports that continue to reiterate the fact it could be doable in a lame duck if there is political will. There is not today, but there could be after the election.”

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

By Kristi Ellis

Julia Hughes, president at the U.S. Fashion Industry Association, said passage of TPP and the Customs conference report are her group’s priorities.

“I think there’s definitely a good chance for TPP to pass this year,” Hughes said. “I still suspect that the best opportunity though will be after the election in the lame-duck session….We support TPP and we anticipate that Congress will approve TPP, but it is a question of what the best timing will be in what will be an incredibly politically charged year.”

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