OTEXA Released the 2013 Going Global Report

 

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The Office of Textiles and Apparel (OTEXA) under the U.S. Department of Commerce recently released the 2013 version of the Going Global Report, which identifies both the largest and the fastest growing export markets for U.S.-made textiles and apparel (T&A) products from 2006 to 2012. Among the 15 largest export markets, six are based in America, five are located in Asia and the rest are from Europe.  

What should be particularly noted is that Vietnam is identified as the top fastest growing export market for U.S. made textiles by the report. In 2012, the U.S. textile exports to Vietnam increased 54.3% from 2011, totaling $66.2 million. However, according to the statistics from the U.N. Comtrade, by 2011,  only 0.6% of Vietnam’s textile imports came from the United States, whereas the leading textile suppliers to Vietnam, including China, Japan and South Korea, are all based in Asia. This raises the question as to whether the Trans-Pacific Partnership (TPP), if concluded, is able to “break” the current regional production & trade pattern in Asia and positively promote the vertical collaboration between Vietnam and the United States for T&A production and trade.

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The on-going restructuring of the U.S. textile and apparel industry in response to the changing nature of today’s global economy has resulted in a significant shift in the U.S. T&A trade policy in the past few years, moving away from restricting imports to promoting exports in the global marketplace. As the report puts it:

“The growth of the global economy provides U.S. firms with greater opportunities to seek out new markets and customers and to expand their businesses. Moreover, with increased competition from overseas, companies are looking to diversify their client base and find new ways to grow. The supply chain for textiles and apparel has become increasingly global, to include North America, Latin America, Europe, Africa and the Asia Pacific region. Customers, suppliers, manufacturers, and assemblers are located throughout the world, and represent new potential partners for U.S. firms looking to expand abroad. “

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Author: Sheng Lu

Professor @ University of Delaware

3 thoughts on “OTEXA Released the 2013 Going Global Report”

  1. I find this article interesting as we were discussing importing, exporting, and globalization in class on Tuesday. Although globalization can be portrayed as a bad thing, especially here in the US, this article emphasizes the point that it is not. I agree that with the global economy growing faster and faster each day, the US has many potential partnerships that we could pursue and be successful with.

    1. It is good to realize globalization does not mean “one way importing” for the United States. As the third largest exporters in the world, the US also benefit from globalization and US actually plays a critical role promoting the freer movement of goods, services and capital in the world, such as the establishment of the “Bretton wood” system after WWII. For TMD/TM students, I hope you can realize that in today’s world, the business model for apparel company is “produce everywhere” and “sell everywhere”.

  2. I agree that the growth of the global economy is providing US companies with the ability to seek out new markets and customers and expand businesses. It does not seem like the US will be restricting imports any time soon, for even though it sounds like a simple solution to our country and industry’s economic problems, we are already one of the largest importing countries in the world. This means a sudden halt would drastically effect our own market, as well as various other market economies throughout the world. By setting up negotiations such as the TPP, we could secure trade between emerging economies such as that of Vietnam, which would benefit both countries involved in the trade. We can trade products that we specialize in, such as textile products, with countries that produce apparel, and in return, import the finished apparel products. This would help in stimulating both participating country’s economies.

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