• Linkdin

Interview with Kevin Burke

Kevin Burke
Kevin Burke
President and CEO
AAFA
AAFA

We've said many times that "free trade agreements" are not fully "free trade".
Kevin Burke, the president and CEO of American Apparel and Footwear Association (AAFA) speaks about issues related to the industry during an interview with Fibre2Fashion Correspondent Manushi Gandhi. Synopsis: Headquartered in Arlington, Virginia, American Apparel and Footwear Association (AAFA) was formed in August 2000 to promote the business of apparel and footwear. It was formed by the merger of: 1. The American Apparel and Manufacturers Association (AAMA) and 2. Footwear Industries of America(FIA). Kevin Burke is associated with AAFA since last 13 years. He has an experience of more than 30years as a government relations professional. Mr. Burke has previously led government relations efforts for Food Distributors International, the American Bakers Association, and the National Broadcasters Association. He received a a bachelor's degree from the State University of New York at Brockport.He also holds master's degree in public administration in 1983 from the American University in Washington D.C. Excerpts:

What steps have been taken by AAFA to encourage as well as enforce ethical business practices in the apparel making industry?

We believe that all workers in the global apparel and footwear industry should be treated with fairness and respect. To that end, AAFA has aggressively led educational and training programs all around with the world on important topics like product safety, chemical management, fire and worker safety, environmental compliance and more. We also work to build consensus and share industry best practices on these complex challenges.
 

The recession of 2009 had reduced the purchasing power of the US. This reduced the apparel imports. What is the latest status of apparel imports in your land?

As the world experienced the economic downturn, it did have a negative impact on U.S. apparel and footwear sales. Since then, we have seen the market rebound considerably. The U.S. market is now back to pre-recession consumption levels, and we are finding more growth opportunities each day as our economy strengthens.

The area under cotton cultivation has declined. How has this disturbed the demand and supply chain of apparels?

U.S. exports of apparel, textile products, yarn, fabric, and cotton almost all rose significantly in 2011. Reflecting the resurgence in U.S. apparel manufacturing, U.S. apparel exports grew in 2011, with all of the top export markets for U.S.-made finished apparel experiencing significant increases. While the 2012 data is not yet available, we anticipate a continuation of these trends. U.S. exports of yarn and fabric in 2011 rose in virtually all of the top 10 markets, with notable movement upward in Canada, Mexico, the CAFTA-DR region, and China, the biggest customers for U.S. textiles.China is now the # 2 market for U.S. yarn and the # 3 market for U.S. fabrics. U.S. cotton exports in 2011 surged in every single top 10 market.China remained the largest market for U.S. cotton, buying nearly 1/3 of all U.S. cotton exports.

What is the total number of members associated with your organisation? Why is it important for an apparel businessman to have AAFA membership?

Representing more than 425 members and 1,000 world famous brands, the American Apparel & Footwear Association (AAFA) is the trusted public policy and political voice of the apparel and footwear industry. Its management and shareholders, its four million U.S. workers, and its contribution of $350 billion in annual U.S. retail sales. AAFA stands at the forefront as a leader of positive change for the apparel and footwear industry. With integrity and purpose, it delivers a unified voice on key legislative and regulatory issues. The association enables a collaborative forum to promote best practices and innovation. Our comprehensive work ensures the continued success and growth of the apparel and footwear industry, its suppliers, and its customers.

What kind of competition the US apparel industry expecting from other nations across the world?

U.S. brand names are the best in the world. As the industry continues to compete in the global market, a variety of market access make global growth challenging. AAFA has worked with its members to develop new member resources to better navigate these market access issues, like labeling requirements and intellectual property protections. Our country profiles cover these market access issues for 13 countries, and we have more profiles set to be released soon.

How far do you think that free trade practices actually exist in the world? Do you feel that they are just limited to agreements on papers?

We’ve said many times that “free trade agreements” are not fully “free trade.” Many times, free trade agreements are limited in scope to protect a domestic interest. We face these challenges in the current Trans-Pacific Partnership (TPP) negotiations, especially as these talks relate to flexible rules of origin for apparel products. AAFA and others continue to negotiate for flexible rules of origin that satisfy our 21st century business model.

Why the US is a preferred market for the luxury apparel brands? Do you see any change in this outlook of these brands?

As the global economy continues to improve, consumers are returning to their high-level tastes and preferences for high-end goods. The real growth opportunity for luxury brands is the global market. China may be the fastest growing market for U.S. and European luxury brands.

Do you feel that reigning textile and apparel giants may loose their market in the near future?

China continues to be the largest supplier of apparel and footwear to the U.S. market. We expect that to hold true for the next several years. However, countries like Vietnam, Indonesia, and Bangladesh continue to grow their market share each year. How each of these countries addresses quality, capacity, infrastructure, and safety challenges will impact their future success in the global market.

America is one of the largest importers of textiles. Why so? Why not produce it locally for apparels made in the US?

In short, Americans love fashionable, affordable, and safe clothes and shoes. We spent about $350 billion on nearly 20 billion new garments and 2 billion pairs of shoes last year. In fact, the United States represents just five percent of the world’s population, but we buy 25 percent of the world’s clothes and shoes. In 2012, more than 97 percent of the apparel and 98 percent of the footwear sold in the United States was produced globally. At the same time, last year marked the first ever growth in U.S. domestic manufacturing for the commercial market. “Made in the USA” is growing in popularity in the United States. We also see that the “Made in the USA” label is extremely popular in countries like China, the United Kingdom, and more.

What will be the significance of apparel sector in the total trade practices of the US in the year 2013-2014?

This upcoming year will be a year of positive growth for the U.S. apparel and footwear industry. As the TPP negotiations continue and the new Trans-Atlantic Trade and Investment Partnership between the United States and the European Union begin, we will soon realize many trade opening and harmonization opportunities. We also hope to have several trade liberalizing initiatives passed, including the Affordable Footwear Act, the U.S. OUTDOOR Act, the Generalize System of Preferences Update Act, and the SAVE Act as soon as possible.
Published on: 06/06/2013

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.