New Trade Legislation Takes Effect
Apparel groups praised the recent bundle of laws that expand the possibility of sourcing in Africa and Central America.
Julie Hughes, president of the U.S. Association of Importers of Textiles and Apparel in Washington, D.C., was supportive of the various fixes to the Dominican Republic– Central America Free Trade Agreement that were approved by Congress on Aug. 2. These fixes included corrections that all monofilament- sewing thread must be produced in the United States or the DR-CAFTA region for apparel to qualify for duty-free entry.
She also gave high marks for extending through September 2015 the third-country fabric provision under the African Growth and Opportunity Act. This extension means that the 41 AGOA member countries can import fabric from outside the region, cut and sew it, and then ship it to the United States for duty-free entry. The Republic of South Sudan was added to the group.
"U.S. apparel brands and retailers are thrilled that Congress has finally renewed the AGOA third-country fabric benefit and enacted the DR-CAFTA technical fixes," Hughes said. "These two provisions will help create and maintain jobs in the apparel industry both in the United States as well as in our trading partner countries, especially in Africa."
The American Manufacturing Trade Action Coalition noted that the sewing-thread fix was negotiated at a February 2011 ministerial meeting of DR-CAFTA countries.
This was after the original trade agreement said that apparel and textile home furnishings had to be assembled using sewing thread made in the region. However, an inadequate historical definition of sewing thread was inserted that did not cover single multifilament synthetic yarn used as sewing thread. The outdated definition failed to recognize the fact that new technologies have rendered single multifilament yarns strong enough for use when making apparel and home furnishings.
"U.S. sewing-thread manufacturers have been pressing for this fix since the implementation of the DR-CAFTA more than six years ago. We are very pleased it passed," said AMTAC Executive Director Auggie Tantillo. "American sewing-thread manufacturers lost business to producers from China and elsewhere in Asia because of this loophole. By closing it, we are confident that U.S. thread producers can begin to recapture market share in the DR-CAFTA region, leading to more jobs and increased U.S. exports." More than 1,800 people are employed in sewing-thread manufacturing in the United States, AMTAC said.
Also, Congress extended for three years the ban on imports from Myanmar, also known as Burma. The ban will remain in place until at least July 2013, when an annual review will take place. Import restrictions were placed on Myanmar in 2003.—D.B.
