Home / Knowledge / News / Textiles / Report on barriers faced by US SME textile exporters
Report on barriers faced by US SME textile exporters
17
Jul '10
The United States International Trade Commission (USITC) recently published a report on barriers and opportunities experienced by small and medium-sized export enterprises. The report presents US SMEs' views on barriers to exporting, strategies to overcome those barriers and other trade costs, and policy recommendations to increase US exports.

It recounts the views of US SMEs on the US economy as a whole and on seven specific industries in the agriculture, manufacturing, and service sectors. The seven industries are apples, wine, chemicals and nanotechnology, textiles and apparel, medical devices, computer services, and professional services. They were selected because SMEs are well represented and highly competitive in all of these industries.

SMEs also cited their difficulty in collecting foreign receivables as a major constraint to exporting. For example, some SMEs have lost business because banks and export credit agencies refuse to extend credit based on foreign receivables.8 Representatives of SMEs in several industries also noted that payment terms tend to be longer when dealing with exports.

For example, SMEs in the textiles industry generally receive payments for domestic sales within 30 days, but payments for foreign sales typically take 90–100 days, and the longer payment terms are reportedly difficult for a small company with limited working capital to handle. This longer payment cycle reportedly is another factor that makes it more difficult for SMEs to obtain financing from domestic banks or the Ex-Im Bank.

As regards US Domestic Laws and Regulations, domestic textiles and apparel SMEs also noted that they must comply with U.S. regulations that are often more costly to implement than those of their counterparts abroad.

One key issue cited by SME exporters of agricultural goods and second hand textiles is the problem of container shortages. Issues with labeling regulations were cited as problems for SMEs in industries as diverse as chemicals, nanotechnology, textiles and apparel, and across the agriculture sector. Some labeling regulations can reportedly prevent an SME from entering new export markets altogether, due to concerns that proprietary formulas or ingredients may be divulged.

As regards foreign tarrifs, US exporters of secondhand textiles stated that they face restrictions imposed by up to 31 countries, some of which ban such imports outright while others have adopted high tariffs to discourage such trade. Given that the primary markets for secondhand textiles are outside the United States, the industry is particularly concerned about such barriers.

In connection with Foreign Government Support Programme, representatives of the textiles and apparel industries cited foreign government support programs for their domestic industries as important impediments, making US exports less price-competitive vis-à-vis locally produced goods in a number of countries.

SMEs also report that foreign governments support exports by their firms to a greater extent than the US government, through low-cost loans; marketing support, including support to appear at international trade fairs; free trade missions; and tax incentives. According to industry and government sources, foreign governments heavily subsidize their companies' participation in trade missions and trade fairs related to a wide variety of industries.


Must ReadView All

Courtesy: Pexels

Fashion | On 23rd Jun 2018

Nigerian bank launches N1 bn fund for fashion entrepreneur

Nigeria’s Bank of Industry has set aside 1 billion Naira (N) to...

Courtesy: Tayal

Textiles | On 23rd Jun 2018

Tayal textile factory in Algeria starts exports to Turkey

Algeria’s largest textile factory, the joint Algerian-Turkish company ...

Courtesy: Manhattan Beachwear

Fashion | On 23rd Jun 2018

Manhattan Beachwear in global partnership with BCBG Group

Manhattan Beachwear, the largest swimwear manufacturer in the US, has ...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Giorgio Mantovani
Corman S.p.A

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Judy Frater
Somaiya Kala Vidya

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

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search