California Apparel News

(The photo, above, features California denim brands on display earlier this month at Selfridges in London.)

Last month, the European Union quickly announced and implemented a steep increase in the duty on women’s denim imported from the United States, catching Los Angeles denim manufacturers by surprise with the 26 percent increase, which raised the total duty to 38 percent beginning May 1.

California Representatives Lucille Roybal-Allard, Xavier Beccera, Linda Sanchez and Grace Napolitano entered the debate with a letter sent May 29 to Ambassador Miriam Sapiro, urging the Acting U.S. Trade Representative to end the tariff on American denim and “ensure American denim manufacturers fair access to the European market in all future trade negotiations with the EU.”

The letter warns that the increased duty could put “California manufacturing jobs at risk” and force U.S. companies to move domestic production overseas.

The complete letter is included below and can also be found at Roybal-Allard's website.

Ambassador Miriam Sapiro

Acting United States Trade Representative

Office of the United States Trade Representative

600 17th Street NW

Washington, DC 20508

Dear Ambassador Sapiro:

We appreciate and strongly support the Administration’s efforts to bolster American manufacturing and boost American exports to markets around the world. Recognizing your interest in protecting and growing this critical sector of our economy, we write to express our serious concerns regarding the European Union’s (EU) recent decision to impose new tariffs on women’s jeans. These increased duties will unfairly disadvantage American denim makers, including popular denim brands based in California, and could lead to the loss of valuable manufacturing jobs. For that reason, we respectfully request that you work to end these tariffs and to ensure American denim manufacturers fair access to the European market in all future trade negotiations with the EU.

The first blue jeans were made in California and apparel manufacturing plays an important role in our state’s economy. In recent years, Californian premium denim brands have grown in popularity, both domestically and internationally, and have successfully expanded to new markets in Europe and Asia. Collectively, these brands support thousands of jobs and hundreds of small businesses from sewing contractors to cutting services to dye and wash facilities to textile suppliers. California denim producers have demonstrated that American apparel manufacturers, using American-made materials, can thrive in the intensely competitive global marketplace.

Unfortunately, this California success story has been imperiled by the imposition of new EU tariffs on American women’s jeans. On May 1st, the duties assessed by the EU on this category of products increased dramatically, jumping from 12 to 38 percent. The resulting price increase will push these jeans out of the reach of many European consumers, hurting American denim producers and putting California manufacturing jobs at risk. We fear that unless the new EU duties are rescinded, these businesses may be forced to consider relocating overseas. For these reasons, we strongly encourage you to seek a reduction in these duties and request that you make fair market access for American-made denim and other apparel products a priority in your upcoming trade negotiations with the EU.

We share President Obama’s belief that given a level playing field, American businesses and workers can outcompete anyone. Unfortunately, the EU’s actions have denied American denim makers a fair opportunity to succeed in the European market. Jeans are a quintessentially American product and we strongly believe they should continue be made here in America. We look forward to working with you to address the competitive barriers our denim producers face and to advance our shared goal of revitalizing American manufacturing.

Sincerely,

Rep. Lucille Roybal-Allard

Rep. Xavier Becerra

Rep. Linda Sanchez

Rep. Grace Napolitano

cc: Irving A. Williamson, Chairman, U.S. International Trade Commission