st Century TPP Agreement for Apparel April 2013 Learn more about apparel in the TPP at wwwtppapparelcoalitionorg gtgt 1 Who is the TPP Apparel Coalition Learn more about apparel in the TPP at ID: 459183
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Slide1
Toward a 21st Century TPP Agreement for Apparel
April 2013
Learn
more about apparel in the TPP at
www.tppapparelcoalition.org
>>
1Slide2
Who is the TPP Apparel Coalition
Learn more about apparel in the TPP at www.tppapparelcoalition.org >> 2Slide3
Who is the TPP Apparel Coalition
The TPP Apparel Coalition includes American retailers, apparel brands, apparel manufacturers, and importers, and
the many
millions of American workers
the industry employs.
The
TPP Apparel Coalition
is comprised of US-headquartered
companies that together
employ
3
million
associates
globally, including 2 million associates in the United States, and aggregated total sales of $528 billion. Coalition member companies design, market and sell products manufactured in and imported to the United States.We also market and sell products throughout the TPP countries.
Learn more about apparel in the TPP at www.tppapparelcoalition.org >> 3Slide4
Yarn Forward Has a Dismal Track Record in U.S. FTAs: U.S. Apparel Imports from Yarn Forward FTAs have declined while U.S. Apparel Imports from Other Countries Have Grown
Learn more about apparel in the TPP at www.tppapparelcoalition.org
>> 4Slide5
Yarn Forward Can’t Work for Vietnam: Vietnam has d
iversified textile suppliers (but only about 2 percent come from current TPP countries).
Learn more about apparel in the TPP at
www.tppapparelcoalition.org
>>
5
Note: Vietnam records textile imports from the following current TPP countries:
Australia, Canada, Malaysia, Mexico, New Zealand, Singapore, and the United States. Slide6
Vietnam Will Need Actual Market Access to the United States to make a deal: 73 percent of all duties collected by the U.S. in 2012 were collected on woven and knit apparel.
Learn more about apparel in the TPP at www.tppapparelcoalition.org
>> 6
Total Duties Collected - $1.75 Billion (Vietnam accounts for 70% of All Duties Collected ($2.501 billion) from
current TPP Countries)
Source
: Annual 2012 Data, U.S. International Trade Commission's (ITC) Trade
Dataweb
- http://dataweb.usitc.gov
Distribution of Duties on U.S.
Imports From Vietnam
-
2012
Slide7
Yarn Forward Hasn’t Worked for CAFTA-DR: U.S. textile exports are uneven while U.S. apparel imports are way down.
Learn more about apparel in the TPP at www.tppapparelcoalition.org >>
7Slide8
Yarn Forward Hasn’t Worked for NAFTA: U.S. textile exports and apparel imports grew at first, but have declined over the last decade.
Learn more about apparel in the TPP at www.tppapparelcoalition.org >>
8Slide9
Recent Studies Highlight Substantial U.S. Value Added in U.S. Apparel Imports: Moongate
Associates calculates U.S. value added for imported apparel equals 70 percent
Learn more about apparel in the TPP at www.tppapparelcoalition.org
>>
9
Courtesy:
Moongate
Associates
Value-added as a portion of retail apparel purchase
LOW RETAIL PRICE
Company/product response
HIGH RETAIL PRICE Slide10
A typical apparel global value chain: 3 million U.S. jobs support apparel production, design, distribution, and sales.
Learn more about apparel in the TPP at www.tppapparelcoalition.org >>
10
Courtesy:
Moongate
AssociatesSlide11
U.S. Textile Industry Doesn’t Need Yarn Forward to Export: U.S. textile exports have soared to Vietnam (even without an FTA or yarn forward rules).
Learn more about apparel in the TPP at www.tppapparelcoalition.org >>
11Slide12
U.S. Textile Industry Doesn’t Need Yarn Forward to Export: U.S. textile exports have soared to China (which now ranks as the 2
nd largest market for U.S. yarn and 3rd largest market for U.S. fabric).
Learn more about apparel in the TPP at
www.tppapparelcoalition.org
>>
12Slide13
Yarn Forward Is An “All or Nothing Rule”:
If the entire supply chain can’t line up with each style, each order, and each season, no trade occurs.
Learn more about apparel in the TPP at
www.tppapparelcoalition.org
>>
13
Commonly covered components and operations in yarn forward rules in current US FTAsSlide14
Yarn Forward Requires Heavy Documentation:
If a single document is missing, the entire order fails to qualify.
Four inches of documents
per style is too much.
Learn more about apparel in the TPP at
www.tppapparelcoalition.org
>>
14Slide15
Our Conclusion
Learn more about apparel in the TPP at www.tppapparelcoalition.org >> 15
The 20-year old Yarn Forward Rule Can’t Work for a 21
st
Century Trade Agreement
.
It doesn’t drive exports or imports under U.S. FTAs
It no longer works for the agreement (NAFTA) for which it was tailor-made.
It doesn’t support the 3 million U.S. jobs that depend on global apparel supply chains.
Supply Chains in the ASEAN region extend beyond TPP.
Vietnam, for example, only sources 2 percent of its yarns, fibers, and fabrics from other TPP countries.
Flexible approaches will be needed to ensure trade and investment and bring TPP parties to the table.
U.S. textile exporters successfully export to Asian and Latin American markets and don’t need yarn forward to compete and export.Slide16
Thank you.
For more information, visit www.tppapparelcoalition.org
Learn more about apparel in the TPP at
www.tppapparelcoalition.org
>>
16