Senate Bill Proposes Easing Duties on Philippine Apparel
About 75 percent of all fabric exported from the United States goes to apparel factories in Mexico and Central America, regions that are part of free-trade agreements.
But a new Senate bill introduced March 25 would expand some free-trade benefits to apparel factories in the Philippines, with the intention of someday negotiating a free-trade agreement with that island nation.
The bill, known as The Save Our Industries Act of 2010 (S. 3170), would give 100 percent duty exemption to certain clothing sewn from U.S. fabric and 50 percent duty exemption from clothes made of U.S. yarns.
The idea behind the bill, introduced by Sen. Kit Bond (D–Mo.) and co-sponsored by Sen. Daniel Inouye (D–Hawaii), would be to boost U.S. textile exports, which totaled only $20 million in 2008, to the Philippines.
Any U.S. fabric used would have to be dyed, printed or finished in the United States to qualify.
Some of the articles that would qualify for duty exemption include cotton and manmade-fiber shirts and blouses, trousers and shorts, and swimwear and bras.
Also, certain third-party fabric and yarns would be available for duty-free status if they are in short supply.
The bill has been sent to the Senate Finance Committee to be studied.—Deborah Belgum
