By Marie O'Mahony

In a recent benchmarking survey carried out by the United States Fashion Industry Association (USFIA), 68.4% of (US) respondents said that they did not use the short supply list mechanism because there were not enough products on the list, making it too limited. A further 21.1% did not use it because they said that the documentation requirements were too complicated. In contrast, the Canada-EU CETA rules of origin quotas for apparel and textiles provides for limited reciprocal origin quotas expressed as volume classified by category. Some flexibility is built into the system, so that for instance if more than 80%”” assigned the product is used during a calendar year, then that quota allocation will then be increased for the following calendar year. Time will tell just how much difference Canada-EU CETA will make to trade between Canada and the European Union, but the industry is certainly optimistic.

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