Apparel Coalition Study Says 70% of Value-Added for Imported Clothes is From U.S.
Despite the fact that most apparel sold in the U.S. is manufactured overseas, more than 70% of the added value of that apparel is done in the U.S., according to a study sponsored by the Trans-Pacific Partnership Apparel Coalition. The coalition said the study (here) "showcases the substantial contribution that millions of American workers make to apparel manufactured overseas."
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The study said the U.S. value added was largely in the design and marketing, compliance with U.S. rules, shipping and sales. It said "the global value chain for apparel relies on a full range of highly-skilled and highly-compensated American workers in blue-collar and white-collar jobs that contribute to the design, development, production, importation, distribution and sale of apparel in the United States."
The report also said that removing or reducing tariffs on apparel "under a trade agreement would lower prices to consumers and thus increase demand and therefore jobs and profits all along the apparel global value chain including in the United States."
Responding to the report, coalition member Frank Hugelmeyer, president of the Outdoor Industry Association, said the study "confirms what our recreation economy research indicates -- that the overwhelming majority of outdoor apparel products' value is found here in the United States and benefits American businesses, communities and families." Julia Hughes, president of the U.S. Association of Importers of Textiles & Apparel, agreed the study shows "these imports not only enable consumers to afford high-quality apparel products, but also create high-quality jobs in the United States."
The study shows that the "isolationist perspective that is the underpinning of U.S. apparel trade policy is outdated and counterproductive," said Sandy Kennedy, president of the Retail Industry Leaders Association. National Retail Federation President Matt Shay said it shows that "labels identifying clothing or any other product as made outside the U.S. are largely meaningless."