Impact of the Trans-Pacific Partnership on Textile and Apparel Trade in the Pacific Rim

TPP on T&A trade in the pacific rim

Citation: Lu, S. (2013). Impact of the Trans-Pacific Partnership on textile and apparel trade in the Pacific Rim. World Trade Organization Focus, 20(5), 67-77.

For questions, please contact the author: shenglu@mail.uri.edu

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Author: Sheng Lu

Professor @ University of Delaware

12 thoughts on “Impact of the Trans-Pacific Partnership on Textile and Apparel Trade in the Pacific Rim”

  1. From our class discussions and from assignment 4, it seems to me as though the US will only be losing in terms of it’s textile and apparel industries with the adoption of the TPP, especially with Vietnam involved in this potential trade policy. My question is what are the major benefits from the TPP that the US will gain as a result of this negotiation? Also, what is more valuable to the US – NAFTA or the TPP? It seems to me that if this trade negotiation passes, the US will only be losing out on NAFTA and their relationship with Mexico and the CBI. I suppose I think the losses are larger than the gains for the US with the TPP.

    1. Good question. There are many reasons why the US decides to join the TPP. Economically, TPP can open many new export markets for US made goods AND SERVICES. The gains will far exceed the potential loss in the US T&A industry which only accounts for less than 0.3% of the US GDP. Remember the rule: Bad for the greater good; Sectoral interests vs the national interests. Even within the T&A industry, not everybody is unhappy about TPP: think about importers and many apparel companies that rely heavily on global sourcing. In terms of NAFTA and CAFTA countries, the effect is mixed. But again, it varies sector by sector. Politically, TPP is an important tool to realize the pivot asia strategy. If you are interested in you can take a look at this fact sheet: http://www.ustr.gov/about-us/press-office/fact-sheets/2011/november/united-states-trans-pacific-partnership

  2. Although TPP has some negative affects, I do understand what Sheng is saying about how the positive aspects of TPP outweigh the negative points making it a good decision for the US. It is clear that TPP will further expand the global market in the T&A industry. From this research it seems that it is possible to have little to no manufacturing in the T&A industry done domestically within the next twenty years.

  3. After reading this, along with assignment 4, I can really see how Vietnam joining could negatively effect the US involvement in the TPP. Although, they would be a great asset for them to have, it would negatively bring down our trade with boarding and abroad countries, which is something the US currently cannot afford. The TPP will expand trade as Brianna mentioned above, and I do agree with her statements about the TPP. It is going to be a burden for the US not to domestically manufacture, when that is something they want to promote on a higher level.

    1. actually there was a heated debate around 2010-2011 on whether Vietnam should be allowed to join the TPP negotiation. the us textile industry represented by NCTO strongly opposed it, but becuase other sectors saw Vietnam as a lucrative export market for their products. Eventually the export-oriented sectors pervailed. But again, manufacturing is just part of the US T&A industry.

  4. After reading this article, completing assignment 4, and doing some research online I have learned a lot about the TPP and why Vietnam could be a concern to the U.S. when negotiating TPP. Vietnam is a particular concern to the U.S. textile industry in the TPP negation because Vietnam is the second largest textile and apparel manufacturer within the TPP region, and mainly sources its yarn and fabrics from China and other Asian nations. This is concerning because China and other Asian countries are not included in the TPP. “The U.S. yarn-forward rule led to a negotiating impasse with Vietnam, which has sought a more flexible rule of origin that would enable the use of textile inputs from outside the TPP region to make qualifying apparel.” (Assignment 4) Vietnam seldom uses U.S. made textile inputs, and is geographically close to China. I agree with the previous comments above, and even though the TPP has some negatives they are outweighed by the positives.

    1. now after learning that, when the TPP is eventually reached, based on the specific clauses included in the agreement, hopefully you can evaluate its potential impact on the future landscape of the US T&A industry

  5. After reading this article and completing assignment four I think that Vietnam joining the TPP could be a major concern U.S. Although there would be many good things that Vietnam could bring like Katie mentioned I do not think that this would be a positive outcome for the United States. There is more losing than gaining for the United States. Although like other students mentioned it will further expand global trade, there are many positives and negatives to the TPP.

  6. Overall the results of the implementations look negative for the US with a trade deficit increase. So why would the US agree to be implemented with the TPP? As the article does say this ‘game changer’ will bring ‘winners’ and ‘losers.’ The only ones to seem to be winners are the Vietnamese.

    1. TPP covers more than just T&A, just like the US economy. Other export oriented sectors (both manufacturing and service) may reach more clients overseas beacuase of TPP. On the other hand, trade deficit may no longer explain “winners” and “losers”, becuause the current trade statistical system does not reflect added value. Just like an ipad which is globally made. Although most of the profit goes to apple Inc, becuase it is assembled in China, it is counted as China’s trade surplus when exported to the U.S.

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