U.S. Textile and Apparel Trade Policy Update

Similar documents
Sourcing Outlook for the Fashion Industry. Julia K. Hughes USFIA Washington Trade Symposium July 30, 2015

2016 Americas Forum ABA Section of International Law

Comments in Response to Executive Order Regarding Trade Agreements Violations and Abuses Docket No. USTR

Department of Foreign Affairs and Trade

Plurilateralism: A New Way of Trade Liberalism?

TPP11 Agreement in Principle: Japan s Role in Mega-regional Trade Agreements

U.S. Trade with Major Trading Partners

Charting Mexico s Economy

OFFICE OF INTERNATIONAL TRADE

Presentation by Economy Under Review - Chile

Helping Tennessee Companies Export

tariff global business nontariff barriers multinational corporation quota direct foreign investment trade barriers voluntary export restraints

Services Trade: Essential Fuel for U.S. and Global Economic Growth

Textile Policy Update. SPESA EXECUTIVE CONFERENCE November 8, 2017

Introduction to Free Trade Agreements. Monica Banken

Elephants in a bazaar?

Total Imports by Volume (Gallons per Country)

Influences of Quotas, Tariffs and Bilateral Trade agreement on Post 2005 Apparel Trade

STANDARDS ANDTRADE. Eileen Hill Team Leader for Standards International Trade Administration U.S. Department of Commerce

Trans-Pacific Partnership

IMPLICATIONS OF THE TERMINATION OF THE AGREEMENT ON TEXTILES AND CLOTHING (ATC) FOR LATIN AMERICA AND THE CARIBBEAN

EU Trade Policy and CETA

PubPol 201. Module 1: International Trade Policy. Class 1 Outline. Class 1 Outline. Growth of world and US trade. Class 1

Trade Policy Outlook for 2014 The EU Dimension

International Trade Agreements and Emerging Markets

Total Imports by Volume (Gallons per Country)

Belize FedEx International Priority. FedEx International Economy 3

Belize FedEx International Priority. FedEx International Economy 3

Legal Review of FTA Tariff Negotiations

What s Next for FTAs: Colombia, Panama and Korea

The Trans-Pacific Partnership Agreement And New Trade Agreements Will Change The World Of Trade

Total Imports by Volume (Gallons per Country)

FREE TRADE AGREEMENTS ANALYSIS

Economic Impact of Canada s Participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

FedEx International Priority. FedEx International Economy 3

Invest. Colombia. Textile & Apparel Industry. September Hard-Working, Commited, Talented

Michigan s Economic Future and MEDC Initiatives

US-Korea FTA Impact on Textiles and Apparels

India s Trade Policy and Global Trade Initiatives

ENHANCING TRADE AND INVESTMENT, SUPPORTING JOBS, ECONOMIC GROWTH AND DEVELOPMENT: OUTLINES OF THE TRANS-PACIFIC PARTNERSHIP AGREEMENT

CRS Report for Congress

St. Martin 2013 SERVICES AND RATES

Total Imports by Volume (Gallons per Country)

The Importance of CJK FTA for the Development of Trilateral Cooperation

Thailand and TPP 30 November 2012 Apiradi Tantraporn, Executive Chairperson The International Institute for Asia Pacific Studies (INSAPS), Bangkok

The TPP Agreement: An Opportunity for Delaware. Trade & Investment with TPP Countries Is Good for Delaware. Jobs Exports Investment

U.S. Commercial Service An Exporter s Resource. June 7, 2011 Rebecca Torres, Commercial Officer

Click to edit Master title style. Presented by Sylvia Solf Private and Financial Sector Vice-presidency World Bank Group

Regional Initiatives. Unveiling the Trans-Pacific Partnership: An Analysis of the Full Text. Y. Dong, Q. Su

The TPP Agreement: An Opportunity for Delaware. Trade & Investment with TPP Countries Is Good for Delaware. Jobs Exports Investment

SELA Antenna in the United States

Total Imports by Volume (Gallons per Country)

Total Imports by Volume (Gallons per Country)

Rina Oktaviani Bogor Agricultural University, Indonesia

The Global Summit of Women 2009 Santiago, Chile May 14-16

Supplemental Table I. WTO impact by industry

U.S. Sugar Monthly Import and Re-Exports

Getting to Yes on Expanded US Market Access for the Poorest Countries

Total Imports by Volume (Gallons per Country)

Japan s New Trade Policy in Asia-Pacific

EQUITY REPORTING & WITHHOLDING. Updated May 2016

6.GARMENTS & TEXTILES

Summary 715 SUMMARY. Minimum Legal Fee Schedule. Loser Pays Statute. Prohibition Against Legal Advertising / Soliciting of Pro bono

INVESTMENT IN TEXTILE IN VIETNAM Presented by: Mr. Nguyen Van Tuan Chairman of Vietnam Cotton and Spinning Association (VCOSA)

"Regional Environmental Cooperation in ASEAN: Present and Future Prospects"

Total Imports by Volume (Gallons per Country)

Total Imports by Volume (Gallons per Country)

Total Imports by Volume (Gallons per Country)

Total Imports by Volume (Gallons per Country)

Total Imports by Volume (Gallons per Country)

OTHER COUNTRIES AND AREAS. Chapter 11

Trần Thanh Hải (Mr.) Deputy Director General Agency of Foreign Trade Ministry of Industry and Trade of Viet Nam

Total Imports by Volume (Gallons per Country)

Role of PTAs for Promoting MSMEs Integration in GVCs

Sugar Monthly Import and Re-Exports

CFRED The Trans Pacific Partnership Impact and Implications. Assessing the content from a business perspective

STANDARDS AND TRADE. Eileen Hill Team Leader for Standards International Trade Administration U.S. Department of Commerce

Beyond Bali: prospects for multi- and plurilateral trade negotiations. by György Csáki Szent István University, Gödöllő - HUNGARY

GS Emerging Markets Debt Blend Portfolio

Division on Investment and Enterprise

Sugar Monthly Import and Re-Exports

The TPP Agreement: An Opportunity for Maryland. Trade & Investment with TPP Countries Is Good for Maryland. Jobs Exports Investment

Navigating the Trans- Pacific Partnership

SPECIALISTS IN INTERNATIONAL LAW ON LATIN AMERICA AND THE CARIBBEAN, S.C.

When Good Claims Go Bad! When U.S. Customs Makes You Pay Duty on Duty-Free Merchandise

Session 5: In search of the meaningful market access what are the policy options for LDCs

Non-Agricultural Market Access (NAMA)

C NAS. International Policy Update & Producer Opportunities

Trade Policy in Brazil. What is the Agenda?

BRIEFING ON The TRANS-PACIFIC PARTNERSHIP AGREEMENT (TPPA)

U.S. Trade with Free Trade Agreement (FTA) Partners

Pre-Hearing Statement of Linda M. Dempsey, Vice President, International Economic Affairs, National Association of Manufacturers

Pascal Kerneis Managing Director ESF (European Services Forum)

NPPC Overview. Illinois Pork Producers Association Annual Meeting February 6, 2018

Does One Law Fit All? Cross-Country Evidence on Okun s Law

Public Procurement networks in Latin America and the Caribbean

Canada Jumps on the Bilateral Bandwagon

THE GLOBAL TRADE ENVIRONMENT: MORE THAN JUST TARIFFS ROOM 314 DECEMBER 5, 2018

Fourteenth Report on G20 Investment Measures 1

15.6 M 45% 17,770. The TPP Agreement: An Opportunity for the United States. Overview. What Is the TPP?

Transcription:

U.S. Textile and Apparel Trade Policy Update Kim Glas Deputy Assistant Secretary for Textiles and Apparel International Trade Administration U.S. Department of Commerce USA-ITA January 9, 2013

Agenda Trans-Pacific Partnership CAFTA-DR Fixes/AGOA 3 rd Party Fabric Extension Free Trade Agreements National Export Initiative Argentina, Brazil, and Mercosur

Trans-Pacific Partnership Agreement Successful completion of 15 th negotiating round in Auckland, New Zealand: December 3 12 th Mexico and Canada join TPP negotiations Target completion the end of 2013

TPP: A 21 st -Century Agreement that Promotes Jobs and Sourcing Opportunities Labor and Environmental provisions Promotes trade and investment among member countries and ensures benefits are shared among signatories Forward-looking agreement with aim of future expansion to other partners in the region

TPP Region Has Substantial Textile and Apparel Production Total TPP textile exports - $25.7 billion Total TPP apparel exports - $32.7 billion The four largest TPP textile exporters the U.S., Vietnam, Mexico and Malaysia represent over 80 percent of total TPP textile exports

Exports by TPP Country Textiles Apparel Total United States: $13.8 B $5.2 B $19.0 B Vietnam: $3.8 B $13.2 B $17.0 B Mexico: $2.1 B $4.6 B $6.7 B Malaysia: $2.0 B $4.6 B $6.6 B Canada: $2.0 B $1.3 B $3.3 B Singapore: $851 M $1.2 B $2.1 B Peru: $374 M $1.5 B $1.9 B Chile: $213 M $441 M $654 M New Zealand: $297 M $206 M $503 M Australia: $253 M $235 M $488 M Brunei: $2 M $224 M $226 M Source:: WTO Statistics Database, Time Series on International Trade.

TPP: Textiles and Apparel The Product Specific Rule of Origin (PSR) for textiles is based on the yarnforward concept, where a good qualifies for duty preferences if production occurs in one or more parties to the FTA from the yarn manufacturing stage forward to the end product, however we realize that some products may not be available from TPP partners. Thus, in order to maximize the eligibility of textile and apparel products for duty preference, flexibilities will be considered, such as short supply. A short supply list (SSL) would be structured to identify inputs not available in TPP countries and eligible for use from third countries. The SSL would be structured on a permanent and temporary (3 years) basis.

Current Short Supply Process under NAFTA/CAFTA After FTA implemented, Interested Entities submit requests for review by U.S. Government. NAFTA style: request rule of origin change for specific product that allows sourcing of fiber, yarn, or fabrics from outside region. U.S. first vets domestically, then consults with trading partners. CAFTA style: request that a specific fiber, yarn, or fabric be placed on a list that can be used in any product. Request/offer between businesses with U.S. Government determining based on submitted information whether product is available.

NEW for TPP: Negotiated Short Supply Governments will agree to shorts supply lists of fibers, yarns, and fabrics that can be sourced from outside the region for qualifying products. These lists will be part of the agreement when implemented. There will be NO PROCESS after implementation. No voluminous request/offer communications need be provided. Governments will vet proposed products with their industries and discuss concerns to reach a resolution on which products will be included on the short supply lists.

Changes under TPP Short Supply Simplified Consolidated Logical Efficient

Types of Product Descriptions for TPP Entire HTS classification Example - 5506.3000 acrylic or modacrylic synthetic staple fiber, carded. Subset of HTS classification Example - 100 percent cotton yarn-dyed woven flannel fabrics, made from 14 through 41 NM single ring-spun yarns, classified in 5208.43.0000, weighing 200 grams per square meter or less. Product with a specified end-use Example Fabrics of average yarn number exceeding 93 metric, classified in tariff items 5208.2160, 5208.2280, and 5208.2980, for use in dress shirts classified in HTS headings 6205 and 6206. Composite product with a specified enduse Example 3-layer laminated fabric; waterproof and breathable with DWR coating and laminated with eptfe membrane classified in tariff item 5903.9025; face: weave, twill or plain; back: tricot knit, Warp face: 70-120d; Warp back: 20-40d; Filling face: 60-130d; Filling back: 15-30d; face and back: flat or textured continuous filament. Face 125-180 g/m2; Back: 28-40g/m2 for use in outdoor apparel

Implementation of AGOA 3 rd Party Fabric Extension and CAFTA Fixes! Passed US Congress on August 2, 2012 Signed by the President on August 10, 2012 Fixes took effect on October 13, 2012

The African Growth and Opportunity Act (AGOA) Expires September 30, 2015 Administration committed to working with Congress to extend AGOA beyond 2015 3 rd country fabric provision extended through September 30, 2015 Trade (YTD 2012) - U.S. imports of textiles and apparel from SSA totaled $919.5 million in 2011 (+14.5% from 2010) - Almost 90% of imports receive preferential access to US market under AGOA

CAFTA-DR Update: Technical Fixes 1. Women s and girls woven sleep bottoms 2. Treatment of knit to shape components 3. Clarification of Chapter notes to the short supply list for sewing thread, pocketing fabrics, and visible lining fabrics 4. Treatment of elastomeric yarn in fabrics on the short supply list 5. Classification of knit waistband ribs 6. Monofilament sewing thread

Implementation of Three New FTAs In 2012, 3 FTAs implemented: Korea (March 15, 2012); Colombia (May 15, 2012) and Panama (October 31, 2012) Rule of origin: yarn-forward immediate duty-free if product meets rules of origin Textiles-specific safeguard Customs enforcement provisions Streamlined commercial availability provisions Combined, US exports of textiles and apparel to these markets grew by 13% between 2010 and 2011, to $646.1 million

National Export Initiative (NEI) President Obama announced the National Export Initiative (NEI) in his 2010 State of the Union address, and set the ambitious goal of doubling U.S. exports in the next five years to support millions of jobs here at home.

($Millions) U.S. Textile & Apparel Trade with CAFTA-DR, 2009-2011

U.S. Exports of Yarns and Fabric to CAFTA-DR

Top 10 Markets for U.S. Exports of Textiles and Apparel Ranked by 2011 Value ($Billions) Country 2010 2011 % change Canada $4.5 $5.0 +11.8 Mexico $4.3 $4.9 +13.7 Honduras $1.5 $1.8 +26.4 China $1.2 $1.3 +14.3 Dominican Republic $0.672 $0.818 +21.7 Japan $0.589 $0.642 +9.0 El Salvador $0.435 $0.632 +45.3 United Kingdom $0.543 $0.557 +2.6 Belgium $0.417 $0.428 +2.6 Hong Kong $0.390 $0.427 +9.5 World $19.7 $22.4 +13.6 Source: Office of Textiles and Apparel, Export Market Report.

Export Promotion Success Unprecedented Success! Sourcing in the Americas Summit & Pavilion was featured at MAGIC Sourcing in August of 2011 and 2012 Sourcing in the Americas 2011 and 2012 brought together regional businesses from all industries in the supply chain fiber, yarn, fabric, apparel manufacturers, brands and retailers

Successful Partnerships Sourcing in the Americas Events were a collaborative effort between the Office of Textiles and Apparel (OTEXA), the Office of the U.S. Trade Representative (USTR), multiple major domestic and international trade associations, and various domestic trade show organizers 2011 and 2012 DOC Americas Pavilion featured over 100 companies from the U.S., CAFTA-DR, Colombia, Haiti, Mexico, and Peru

Argentina Trade Restrictions August 21, 2012 - U.S. requested consultations with Argentina concerning measures imposed on imported goods Argentina accepted requests of Australia, Canada, the EU, Guatemala, Japan, Mexico, and Turkey to join the consultations Consultations did not lead to resolution of concerns December 6, 2012 - U.S. requested establishment of WTO Dispute Settlement Panel Specific concerns raised in the dispute: Non-transparent licensing requirements Importers must agree to export products of equal or greater value, invest in production facilities in Argentina, increase Argentinean content in their products, control prices and/or agree not to repatriate profits

Brazil s New Tax Breaks for the Textile Industry On April 3, 2012 the Brazilian government announced tax incentives for the textile sector (and 14 other sectors). The current 20 percent payroll tax will be replaced by a tax on gross revenues that was set at 1 percent for industries. Exports will be excluded from the calculation of revenues.

MERCOSUR Members Allow Duty Rate Increases On December 20, 2011, MERCOSUR 1 Member countries agreed that each member country is allowed to increase import duty rates temporarily to a maximum rate of 35 percent on up to 100 tariff items per member country Effective January 2012; to remain in effect through the end of 2013, with the possibility of extension through the end of 2014 1 MERCOSUR: Argentina, Brazil, Paraguay and Uruguay

OTEXA Website

Thank You Kim Glas Deputy Assistant Secretary Office of Textiles and Apparel Kim.Glas@trade.gov Telephone: (202) 482-3737 OTEXA website: otexa.ita.doc.gov