Home / Knowledge / News / Apparel/Garments / Will 'Buy American' policy impact Sri Lankan garment exports?
Will 'Buy American' policy impact Sri Lankan garment exports?
Apr '09
The 'Buy American' clause proposed by President Obama, urging the purchase of locally produced products is stirring up a controversy. This indicates the protectionist thinking that is slithering into the US administration.

The stimulus package also mentions that uniforms for a particular government department can be purchased only if they are 100% US made.

This has raised an alarm in the minds of worldwide economic analysts, as this policy has the potential of taking an ugly turn and may be even for the worse and could even more impact global economies.

Earlier the same protectionist strategy practiced during the 1930's had caused a major downturn in worldwide economies and resulted in a breakdown of foreign trade as other countries tried to retaliate with their own protectionist policies.

Sri Lanka is one of the most significant and dynamic country in the global apparel market. Garment industry in Sri Lanka retains a dominant position and contributes nearly 40% to its industrial production.

With the advent of the economic crisis in US, the heat is being felt by the garment companies in Sri Lanka, which led to a 5.5 percent decline in exports during 2008. The slump is continuing currently.

To ride the tide, many existing Sri Lankan companies had to go for a cut in their prices so as to remain competitive.

Obama's reign may be a turning point in the U.S. trade policy, making the industry critics to contemplate and debate about the impact of the billions of dollars worth of global apparel and textile trade.

While the rest of the world looks at US for an economic turnaround, Sri Lankan apparel industry faces the key challenge of losing its competitive edge in the apparel exports due to the policies of the US Government.

Click here to read the complete article.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 26th Jul 2017

Q1 2018 revenue at Raymond soars 14%

The consolidated revenue of Raymond Limited for the first quarter of...

Textiles | On 26th Jul 2017

Textile Corp of America to create 1000 jobs in Tennessee

Textile Corporation of America Inc, a leading textile manufacturer,...

Textiles | On 26th Jul 2017

Leather & footwear industry expecting incentive package

India’s leather and footwear industry is anticipating an incentive...

Interviews View All

Hannah Lane

Encouragement from brands will motivate supply chains to become more...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Planning to Take the Leap towards

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search