Canadian apparel sector hails FTA with Jordan execution

25 Sep '12

2 min read

The Canadian Apparel Federation (CAF) welcomed the announcement earlier by International Trade Minister Ed Fast that the Canada - Jordan Free Trade Agreement will come into force on October 1, 2012.

According to CAF Executive Director Bob Kirke, “We support this agreement as it promises to create new business opportunities for Canadian apparel manufacturers. With this announcement, Jordan becomes one of the few developing countries that enjoys free trade with both the United States and Canada, and as a result is becoming an important production center for Canadian firms," he added.

The association noted that the agreement contains commercially viable rules of origin for apparel. Product specific rules or origin are contained in all free trade agreements, and determine whether goods produced in one of the countries qualify for free trade. “Our industry wants to see rules of origin in trade agreements that are practical given the circumstances of our trading partners, and this agreement does so,” he said. In previous agreements a so-called "yarn forward" rule of origin for apparel (which was introduced in the NAFTA) has severely limited the benefits of various trade deals Canada has signed in previous years.

The Canada – Jordan FTA contains a single-transformation or "cut and sew" rule of origin for apparel – meaning that apparel qualifies for free trade if it is cut and sewn (or knit to shape) in either Jordan or Canada from raw materials sourced from anywhere in the world. Similar rules are contained in Canada's existing agreement with the European Free Trade Association (EFTA), and CAF has requested that Canada adopt such rules in its upcoming negotiations with Japan.

The Federation also urged the Canadian government to move forward with other agreements of importance to the industry (especially the Canada-Europe Comprehensive Economic and Trade Agreement (CETA) and the Trans Pacific Partnership (TPP) which Canada is likely to join later this fall. In both cases the industry is looking for commercially viable rules which will allow all partners to benefit from increased trade.

The Canadian Apparel Federation (CAF) is the national association for Canada's apparel industry. CAF represents the industry on import, export and regulatory issues. CAF is made up of firms from across the country, and represents the entire industry - from small suppliers to national brands and vertically integrated retailers.

Canadian Apparel Federation (CAF)

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