November 22, 2010
Trade groups representing US retailers, importers and textile makers are calling on House and Senate leaders to renew the Andean Trade Promotion and Drug Eradication Act (ATPDEA) before it expires at the end of next month.
The groups want the trade pact to be extended for at least two years, and say swift action is "vitally important" to prevent business disruptions for the apparel and footwear industry.
Under ATPDEA, which is currently due to expire on 31 December 2010, US apparel imports from Andean countries Ecuador, Colombia and Peru enter the US duty-free if they use US cotton, yarns, and fabrics.
"The Andean region remains a critical market for US textiles, supporting tens of thousands of US jobs," the US groups say in a letter sent last week to Congressional leaders. "These export markets function primarily because we in turn provide duty free access to the US market for their textile and apparel products when they incorporate U.S.-made yarns, fabrics, fibres, and other textile inputs."
Exports of US yarns were up 74% in the first seven months of 2010 compared with the same period in 2009. And US fabrics have enjoyed nearly 20% year-on-year growth during the same time. But these gains could be at risk if the Andean program is allowed to lapse.
Signatories to the letter include the American Apparel & Footwear Association (AAFA), National Council of Textile Organizations (NCTO), National Retail Federation (NRF), and the US Association of Importers of Textiles and Apparel (USA-ITA).
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