Domestic and Importer Textile Orgs Argue Their Positions for TPP Talks
The TPP Apparel Coalition and National Council of Textile Organizations have issued their position statements for the Chicago round of TPP negotiations taking place on September 6-15, 2011. These talks will include a forum where nearly 250 stakeholders representing business and other groups will be able to provide input to the negotiations.
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(See ITT's Online Archives or 09/12/11 news, 11091216, for BP summary of the U.S. Trade Representative citing progress on market access, and legal texts in the Chicago round of TPP negotiations.)
TPP Apparel Coalition Says Yarn Forward Rule Unworkable in Today’s Supply Chain
The Trans-Pacific Partnership (TPP) Apparel Coalition, which includes U.S. retailers, apparel brands, apparel manufacturers, and importers, states that restrictive rules such as the “yarn forward” style rule of origin are unworkable in today's global value chains. According to the Coalition, past free trade agreements with TPP countries have shown that such an "all or nothing" approach does not spur new U.S. exports or new apparel trade.
The Coalition has issued its goals for the TPP, which include the liberalization and simplification of rules of origin, integration of textile and apparel products into market access negotiations, implementation of immediate and reciprocal duty-free treatment, etc.
(The yarn forward rule of origin requires that the yarn production and all operations "forward" (i.e., fabric production through apparel assembling) occur in a TPP country, unless excepted.)
NCTO Says Yarn Forward Rule Would Prevent 3rd Parties from Taking Advantage of TPP
NCTO has reissued its position on the TPP negotiations, which again states that the TPP textile text is particularly important because of the inclusion of Vietnam in the talks (the second largest apparel exporter to the U.S.). NCTO is particularly concerned that Vietnam, using primarily Chinese yarns and fabrics, exports the same type of apparel that U.S. sectors make and send to the U.S.
NCTO states that a “yarn forward” rule would help ensure that third parties, such as China, do not take advantage of the agreement. Strengthened customs enforcement rules would also be essential in a final agreement. NCTO also urges USTR to ensure that AGOA, DR-CAFTA, NAFTA, and other trade programs aren't compromised during the negotiations.
(See ITT's Online Archives or 09/12/11 news, 11091212, for BP summary of the U.S. Business Coalition urging for a final TPP agreement to be reached by the November APEC Leader's meeting.
See ITT's Online Archives or 06/02/11 news, 11060222, for BP summary of 52 Congressmen sending a letter to USTR recommending a yarn forward and other rules for the U.S. textile and apparel industry in the TPP.)
TPP Apparel Coalition press release announcing a website on Chicago round is available here and its position on the TPP negotiations is available here.
NCTO letter is available via email by sending a request to documents@brokerpower.com; 09/13/11 updated press statement on its and others presentations to the TPP available here.