By Maria Curi

Apparel industry groups are raising concerns about regulatory requirements in the U.S.-Mexico-Canada Agreement they say could harm the industry, keeping companies from expanding their sourcing in Mexico and Canada.

The North American Free Trade Agreement's yarn-forward rule, which the groups had hoped would be eased in a renegotiated deal, was instead “made tougher,” Julia Hughes, president of the U.S. Fashion Industry Association, told Inside U.S. Trade...

Hughes told the U.S. International Trade Commission last week that the yarn-forward rule of origin “already discourages trade in our sector -- and some companies have told us that they don’t claim the duty savings on eligible products from the region because the compliance requirements are simply too onerous and expensive.” The ITC held hearings to inform its study of the economic impacts of USMCA.

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