NAFTA Yarn-Forward Apparel Rule of Origin Likely 'Here to Stay,' AAFA Executive Says
NAFTA’s yarn-forward rules of origin for textiles and apparel is probably “here to stay,” American Apparel and Footwear Association Executive Vice President Stephen Lamar said during an interview for Just-Style.com. That doesn’t mean minor changes can’t significantly impact sourcing, he added. “Minor changes could mean that someone who is relying on a particular flexibility or a particular provision all the sudden can’t use it, and so their entire supply chain has to pivot and perhaps move outside of North America entirely,” Lamar said. “So any changes, including very, very minor changes, are ones that you really have to do very cautiously with really a lot of education and understanding of exactly who’s going to be impacted, who may or may not be hurt or who may be helped by them.” Modifying or eliminating these “flexibilities” could make yarn-forward much more difficult to comply with, he said.
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During the same interview, National Retail Federation (NRF) Vice President for Supply Chain and Customs Policy Jon Gold said his group “would love” to see the elimination of yarn-forward. But as it remains, NRF is working to keep NAFTA as least restrictive as possible. He agreed with Lamar that more restrictive rules could drive companies to locate outside of North America.
Lamar also signaled concern about the potential for a U.S. push for higher North American and U.S. content in automobiles and auto parts, citing worries about the same logic being applied to textiles and apparel. AAFA is advocating for a “very cautious approach” when it comes to potentially restrictive rules of origin for autos, he said. “The textile industry also supports the auto industry,” Lamar said. “If you try to carry that logic forward from auto into apparel and perhaps even footwear, then you might see more restrictions there, and then that would, again, undermine the supply chains that are dependent on the region.”