ITC Issues Report on Probable Effects of Proposed Modifications to NAFTA Rules of Origin for Certain Textile Articles
The International Trade Commission (ITC) has issued its report for investigation numbers NAFTA-103-7 and NAFTA-103-8 concerning proposed modifications to the North American Free Trade Agreement (NAFTA) rules of origin for five types of textile articles.
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As requested by the U.S. Trade Representative (USTR), the ITC has provided advice on the probable effects of the proposed NAFTA rules of origin modifications for the five subject textile articles on (1) U.S. trade under the NAFTA, (2) total U.S. trade, and (3) domestic producers of the affected articles. If adopted, the proposed rules of origin would apply to U.S. imports from and exports to the NAFTA parties.
Overview of Proposed NAFTA Rule of Origin Modifications for Certain Textile Articles in HTS Chapters 51, 54, 55, 56, and 58
According to the report, the following are the proposed modifications to the NAFTA rules of origin for the following textile articles in HTS Chapters 51, 54, 55, 56, and 58 and the probable effects on U.S. total trade, U.S. trade under NAFTA, and U.S. production:
1) Gimped nylon yarn
The ITC states that the proposed rule of origin change would allow gimped nylon yarn to be made from nylon filament yarn formed outside North America and still be an originating good for NAFTA purposes.
Affected HTS heading: 5606
Probable effect:
U.S. total trade - negligible (imports and exports)
U.S. trade under NAFTA - increase (imports and exports)
U.S. production - increase
2) Woven fabrics of viscose rayon filament yarns
The proposed rule of origin change would allow woven fabrics of non-NAFTA viscose filament rayon yarns to qualify as originating goods.
Affected HTS heading: 5408
Probable effect:
U.S. total trade - increase (imports and exports)
U.S. trade under NAFTA - increase (imports and exports)
U.S. production - negligible
3) Yarn spun from acid-dyeable acrylic tow
The proposed rule of origin change would allow yarn to be made from acid-dyeable acrylic tow formed outside North America and still be an originating good for NAFTA purposes.
Affected HTS subheading: 5509.31
Probable effect:
U.S. total trade - negligible (imports and exports)
U.S. trade under NAFTA - increase (imports and exports)
U.S. production - increase
4) Woven fabrics of combed cashmere or combed camel hair yarn
The proposed rule of origin change would allow fabrics made in the U.S. or Canada to use non-originating combed cashmere and combed camel hair yarn, classified in HTS 5108.20.60.
Affected HTS numbers: 5112.11.60 or 5112.19.95
Probable effect:
U.S. total trade - no effect (imports), increase (exports)
U.S. trade under NAFTA - no effect (imports), increase (exports)
U.S. production - increase
5) Woven pile fabrics containing dry spun acrylic fiber
The proposed rule of origin change would allow woven pile fabrics that contain non-originating dry-spun acrylic fibers to qualify as originating goods.
Affected HTS subheading: HTS 5801.35
Probable effect:
U.S. total trade - increase (imports), no effect (exports)
U.S. trade under NAFTA - increase (imports), no effect (exports)
U.S. production - negligible
(See ITT's Online Archives or 09/10/04 news, 04091020, for BP summary of the institution of these two investigations.)
ITC press release (04-110, dated 10/27/04) available at http://www.usitc.gov/ext_relations/news_release/2004/er1027bb1.htm
ITC report (Inv. No. NAFTA-103-7 and NAFTA-103-8, ITC Publication 3729, dated October 2004) available at http://hotdocs.usitc.gov/docs/pubs/103/pub3729.pdf