The American Apparel and Footwear Association (AAFA) recently wrote to US Trade Representative Katherine Tai, drawing her attention to pressing trade issues affecting their sector like high tariffs, lapse of two critical trade preference programmes, the ‘on-again, off-again’ nature of the African Growth and Opportunity Act (AGOA) programme and strict rules of origin in the Western hemisphere.
The punitive tariffs resulting from the Section 301 investigation on China have emerged as a huge cost burden with severe consequences. These have resulted in price increases for US consumers, American job losses and other irreversible economic damage to the United States, the AAFA letter said.The American Apparel and Footwear Association recently wrote to US Trade Representative Katherine Tai, drawing her attention to pressing trade issues like high tariffs, lapse of two critical trade preference programmes, the 'on-again, off-again' nature of the African Growth and Opportunity Act programme and strict rules of origin in the Western hemisphere.#
“We do not believe these tariffs align with the worker-centric trade policy agenda of the Biden Administration. While we urge the swift removal of all punitive tariffs, we understand that a thorough China policy review is underway. In the meantime, given the urgency of this matter,…we are requesting the elimination of tariffs on reusable surgical and isolation gowns and medical scrubs, the retroactive extension for product exclusions that expired in 2020, and the implementation of a new, more transparent product exclusion process,” AAFA president and chief executive officer Steve Lamar wrote.
“We appreciate the tariff suspensions on the Airbus-Boeing dispute, but it is critical that the parties reach an accord within this time frame to prevent further harm to unrelated industries. We also welcome the administration’s commitment to participate in the multilateral process at the Organization for Economic Cooperation and Development (OECD). A negotiated agreement in this situation in the next few months is crucial as several countries have indicated they will impose a DST [digital services tax] this summer in the absence of an international framework,” he wrote.
Two critical trade preference programmes—the generalized system of preferences (GSP) and the Miscellaneous Tariff Bill (MTB)—lapsed at the end of 2020, imposing a tax increase on American workers, consumers and businesses at a time when they can least afford it.
AAFA requested Tai to support Congress for the swift reauthorisation and retroactive renewal of both programmess to minimise the damage.
Companies are poised to diversify out of China with Africa being a logical geographic region for reinvestment for many. The ‘on-again, off-again’ nature of the AGOA programme before the ten-year renewal has proven extremely disruptive, ultimately preventing the industry from taking full advantage of the first 15 years of the programme, AAFA wrote.
The certainty gained from renewing AGOA this year for another 10 years would give companies clarity on the timeframe they need to develop a vertical, responsible and competitive industry in Africa up to and past 2025, it added.
Fibre2Fashion News Desk (DS)
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