OTEXA identifies top export markets for U.S. textile and apparel

The Office of Textiles and Apparel (OTEXA) recently released its 2012 Going Global Report, which identifies 15 top export markets for U.S. made textiles and apparel. The report also includes statistical profile of these 15 countries, including their GDP per capita, GDP growth and bilateral trade with the United States in recent years.

It is interesting to note that the top export markets for textile and for apparel are very different. Wonder why? Please think about the “stages of development theory” we discussed in class.

HS code refers to the “Harmonized tariff schedule” (HS), a classification system for commodities. Textile and apparel are covered by HS code chapter 50-63. Detailed list can be found at http://www.usitc.gov/tata/hts/bychapter/index.htm

The report can be downloaded from here

Advertisements

WTO Public Forum 2012: “Is Multilateralism in crisis?”

For your reference. Many issues are relevant to textile and apparel sectors (for example: global value chain, trade and job, trade facilitation, competition policy, intelletrual property right protection, green economy, pluralism/regionalism as well as trade and development).  

This year’s WTO Public Forum will debate:

  • formulating new approaches to multilateral trade opening in areas such as trade facilitation;
  • addressing 21st-century issues and identifying areas in need of new regulations;
  • looking at the role of non-state actors in strengthening the multilateral trading system

The session will cover the following sessions

  • Global value chain: implications for trade policy
  • Trade and job
  • The multilateral trading system in the 21st century: interaction between trade and competition policy
  • Plurilaterals and Bilaterals: Guardians or Gravediggers of the WTO?

This year’s Ideas Workshops will cover:

  • How to ensure green economy policies are implemented in a co-ordinated manner rather than at cross-purposes?
  • The future of the WTO dispute settlement system.
  • Rethinking trade-related aspects of intellectual property in today’s global economy.

WTO’s first ever Youth Ambassadors, selected by separate video and essay contests, will discuss the topic “How can trade promote development?”

US: Yarn-forward rule row flares up again

polyester-yarn-import-175429_189210

A row has flared up again over the yarn-forward rule of origin in US free trade agreements after The Hosiery Association (THA) called for a knit-to-shape, assembly-only exception for socks and hosiery in the Trans-Pacific Partnership (TPP).

Three textile trade associations have now written to US Trade Representative Ron Kirk expressing their “strong opposition” to the proposal.

The American Manufacturing Trade Action Coalition (AMTAC), National Council of Textile (NCTO) Organizations, and American Fiber Manufacturers Association (AFMA) say any such move “conflicts with the US textile industry’s longstanding support” of a yarn-forward rule of origin for textiles and apparel.

The yarn-forward rule requires all stages of production – from yarn spinning to fabric formation and final garment assembly – to be done either in the United States or in an FTA partner country to qualify for duty-free treatment.

US textile groups say the rule is “long-established” and “logical” because the value of a finished item comes from its components, rather than from its final assembly.

But American retailers, apparel brands, manufacturers and importers argue it is too restrictive, hinders new trade and investment in the sector, and renders most existing trade ineligible for preferential tariff treatment.

The Hosiery Association wants the TPP pact – currently being negotiated by the US, Vietnam, Brunei, Chile, New Zealand, Singapore, Australia, Malaysia and Peru – to allow hosiery producers to source yarns for man-made fibre socks and hosiery outside the TPP region in all instances except in the case of 100% cotton and polyester products.

But “this proposal would be a massive blow to US and other TPP producers who manufacture acrylic, nylon and various other types of man-made fibre yarns,” the textile groups say.

“In short, the THA proposal allows yarns currently made in large quantities in the United States to be sourced from third parties, notably China,” the letter says.

Technology is driving a revolution in manufacturing

A latest comment made by the Economist on Peter Marsh’s book The New Industrial Revolution.

As metioned in our class, globalization does not mean “made in China” or “off-shore production”, but rather a much freeer movement of goods, services, capital and labor around the world, thanks to the economic growth, lowered trade & investment barriers and advancement of technologies.

In today’s global economy, “any firm, anywhere, can hook up to a global supply chain. A product may be designed in one country and assembled in another, using components from dozens more. Even a small local manufacturer can use the best suppliers the world has to offer.”

This concept is associated with the “new international division of labor” concept, which we will discuss this coming Tuesday.

Garment-Factory Fire in Pakistan Kills 300 Trapped Behind Locked Doors

In the class, we just mentioned that the conditions under which our clothing were made significantly vary from country to country. Compared with the vidoes we watched yesterday, the story covered by the news is such a sharp contrast.

However, we may also want to think: despite the far-from pleasant working environment, why pepole in Pakistan are still willing to work there? As a consumer or professional in the US fashion apparel industry, what we can do to help improve the working conditions as shown in the picture? and what role can international trade play in helping developing countries like Pakistan to achieve economic development?

As reported by the New York Times article :

“Textiles are a major source of foreign currency for Pakistan, accounting for 7.4 percent of its gross domestic product in 2011 and employing 38 percent of the manufacturing work force. Pakistani cotton products are highly sought in neighboring India and form the backbone of a burgeoning fashion industry that caters to the elite. President Asif Ali Zardari’s government has often called on the United States to drop tariff barriers to Pakistani textile imports, which it says would be preferable to traditional aid.”

We will gradually touch these critical issues in the later part of the course. Stay tuned.

Apparel Market: Landscape of Change

An article from the Textile World Highlights:

  • The global apparel retail industry grew by 3.4% in 2011 to reach a value of $1,175,353.1 million. In 2016, the global apparel retail industry is forecast to have a value of $1,348,098.8 million, an increase of 14.7% since 2011.  Americas accounts for 36% of the global apparel retail industry value.
  • Technlogy is changing consumers’ shopping behavior as well as preferences (such as redefining value of products). The internet, smartphones and social networking are driving the apparel industry to a greater extent than ever before.
  • “Made in USA” is attracting consumers, however, to be more accurate, it means “source in the Western Hemisphere” rather than moving manufacturing totally back in the U.S.. However, in order to have “near sourcing” happen, addtional trade liberalization is required to remove the so much constraints.  
  • Supply chain transparancy and cooridnation is with growing significance to the success of business in the apparel companies.
  • The only constant in the apparel industry is change (enviorment, business model, product innovation, technology…).

Re-shoring US apparel making tough but not impossible

This recent comment from Just-style argues that re-shoring U.S. apparel manufacturing may become likely given China’s quickly rising labor cost. However, another two points mentioned by the article deserve more attention: one is that in order to make “made-in-USA” apparel competitive, industry leaders believe that tariffs and trade barriers on imported yarns and fabrics need to be much lowered. The question is, how realistic this “goodwill” can become true, considering the attitude of the US textile sector on the matter and their political influences. Second, although there might be some demands for sewing jobs in the U.S., these occupations are very low paid. The article admits that except immigrant, propably few Americans today (even those unemployeed) would like to take them (and have the qualified skills).  Then, does re-shoring really matter for college graduates in the fashion apparel program?  

To read the full article, click here