With
the imminent signing of three FTAs by the US with Panama, Colombia and South
Korea, there has been open conflict of interests of those in garment and
textile sectors in the US, with the US retail and garment sector on the one
side and the textile industries on the other. The US Congress has recently
approved the FTAs but the arguments rage on as to whether this will give
a much-needed boost to the ailing US economy - or simply kick it
when it's down.
Broadly
speaking, the dividing lines are drawn up depending on how international the
industry's interests are. So retailers and the apparel and footwear sectors are
broadly positive, encouraged at the prospect of increased trade opportunities
in areas with huge growth potential like south-east Asia and Latin America.
"This is a major step toward free and open trade and the creation of jobs
for American workers," said National Retail Federation (NRF) President and
CEO Matthew Shay.

"Limits
on international trade have been allowed to hold back our nation's economy for
far too long, and tearing down those barriers is one of the keys to economic
recovery." Similarly, American Apparel & Footwear Association (AAFA)
president and CEO Kevin Burke claimed the passing of the FTAs "reaffirms
our competitiveness in the global marketplace". He added: "The
benefits these agreements have for more than 4m US apparel and footwear workers
and our consumers are quite clear." By opening these three important
markets to two-way permanent trade flows, we gain access to more than 100m new
consumers while continuing to deliver quality and affordable product right here
at home."
That's
the case in favour, and the AAFA backs it up with figures. Since 2002, it says,
US cotton exports to Colombia have more than quintupled, while yarn and fabric
exports have doubled, creating a market worth about US$300m. Similarly, US
apparel exports to Korea have also increased by five times over the past
decade, making the country the fourth largest market for US-made finished
apparel behind Canada, the UK and Japan.
Textile
Industry Protests
Textile
workers, however, are less than convinced. Nearly 27,000 worker petitions were
delivered to Members of Congress in the run-up to the FTA vote, calling for the
Korea FTA to be scrapped. The reason, said the National Council of Textile
Organisations (NCTO), was the removal of "critical" enforcement
measures, creating an "easy gateway" for low-priced Chinese goods to
be illegally shipped through Korea and on to the US.
Furthermore, NCTO
President Cass Johnson argued that the phase-out schedule provided Korean
exporters with greater access to the US, while domestic textile companies would
have to wait years for equal access in Korea. "We want to ensure that free
trade agreements actually support increasing exports and increasing textile
jobs in this country," said Johnson. "We will strongly support
agreements that provide an equal playing field for the beneficiary country, but
will strongly oppose those that don't."