Apparel Industry 'Decimated' Without USMCA, Industry Groups Say at Hearing
While apparel industry groups have gripes with USMCA, they prefer it to be preserved as it currently stands rather than risk the uncertainty of renegotiation.
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Katherine White, vice president of the National Council of Textile Organizations, told government officials at an Office of the U.S. Trade Representative-hosted panel on Dec. 3 that if USMCA ceases to exist, the domestic textile industry "would be decimated." The supply chains through North America "have become quite critically integrated," she said, making it "imperative" that the Trump administration preserve the agreement.
Beth Hughes, vice president of the American Apparel and Footwear Association, said that while there are "some things that could be changed if there was the opportunity," her organization is "not interested in reopening or renegotiating the agreement." Changes she would like to see include labor requirements, issues with duty drawback, and strengthening of intellectual property enforcement.
Julia Hughes, president of the U.S. Fashion Industry Association, said that her organization would "normally" be advocating for loosening the yarn forward rule of origin for USMCA, as that is a "consistent policy for our association," but when it comes to USMCA renewal, "we really need predictability, particularly in these uncertain times."
Sung Chang, vice president of the Retail Industry Leaders Association, emphasized the need for the agreement to remain trilateral, because his organization's members operate across all three countries. He said that "what we have under the USMCA" and the benefits it brings, "we want those preserved to best serve communities."