FTAs and preference programs remain underutilised. The top FTAs and preference programs among respondents—CAFTA-DR, NAFTA, and the U.S.-Jordan FTA—are utilized by more than 50 percent of respondents. The fourth-ranked program, AGOA, is utilized by 37 per cent of respondents.
The US fashion industry is a critical stakeholder in the Trans-Pacific Partnership (TPP), as close to 80 per cent of respondents expect implementation will impact their business practices. However, the restrictive rules in the agreement limit the potential.
Respondents currently source from five TPP partners: Vietnam, US, Peru, Mexico, and Malaysia. According to the study, 72 per cent of respondents indicated they will source more textiles and apparel from TPP partners after the implementation of the agreement. Additionally, 48 per cent expect to strategically adjust or redesign their supply chain based on TPP. But the restrictive rules limit TPP’s potential. In fact, 45 per cent of respondents say the TPP Short-Supply List should be expanded, and comments indicate the proposed “yarn-forward” Rule of Origin is a major hurdle to the industry realizing real benefits from TPP.
For companies to increase sourcing from the African Growth and Opportunity Act (AGOA), long-term renewal as well as renewal of the “third-country fabric” provision are critical, the study found.
Respondents currently source from five AGOA beneficiaries: Mauritius, Kenya, Lesotho, Madagascar, and South Africa. Around 37 per cent believe AGOA’s renewal will benefit their companies while 26 per cent will source more from AGOA if the program is renewed for a longer term.
American fashion companies continue to express interest in expanding sourcing in the US in the next two years as they further diversify their sourcing. However, the study found no evidence that companies are shifting their business models back to manufacturing. (SH)
Fibre2fashion News Desk – India
Textiles | On 24th Jun 2017
Applied DNA, provider of DNA-based supply chain security,...
Apparel/Garments | On 24th Jun 2017
Global information company the NPD Group has launched Trend Tracker,...
Textiles | On 24th Jun 2017
Cotton USA has announced the successful close to its first innovation ...
Bridalwear is not about reds and whites anymore
Global Organic Textile Standard
‘GOTS is a very efficient supply chain management tool, especially for...
Studio Priyanka Rajiv
‘To reinvent the age-old tradition of embroidery to suit demographics and...
InvestKonsult Sweden AB
Investkonsult Sweden AB has been buying and selling second-hand textile...
Biovation II LLC
Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...
Coating at a fibre level is a practice not usually seen in the...
Yash P. Kotak
Bombay Hemp Company
One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...
Aditi Somani specialises in luxury fusion wear with international cuts and ...
Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...
Fashion | On 20th Jun 2017