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Trade war pushes firms from PRC to GSP nations: statistics

May '19
Pic: Coalition for GSP
Pic: Coalition for GSP
Evidence continues to grow that the nearly year-long US-China trade war is pushing companies to source more from generalised system of preferences (GSP) countries like India, Thailand, Cambodia, Indonesia and Turkey, according to the Coalition for GSP, a group of US firms and trade and consumer bodies educating policymakers and others about GSP benefits.

The May 10 increase in tariffs on $200 billion in imports from China and the announcement that new tariffs on the remaining $300 billion worth imports could come soon will only accelerate the trends, the coalition said on a website that it runs.

Shifting trade from China to these countries does not appear to be a by-product of recent actions, but instead one of President Donald Trump’s explicit goals, and it is working.

GSP saved US companies $105 million in March, an increase of $28 million (36 per cent) from March 2018 and the second highest level on record. In the first quarter of 2019, GSP saved US companies $285 million. That is $63 million more than the first quarter of 2018.

Products hit by Section 301 tariffs when imported from China account for 90 per cent of increased GSP imports in 2019. Overall, GSP imports rose by about $760 million, with $672 million coming on products on China Section 301 lists. GSP imports of products on those Section 301 lists increased by 19 per cent, while GSP imports of other products increased by just 5 per cent.

For India, 97 per cent of increased 2019 GSP imports are on the China Section 301 lists. GSP imports on Section 301 lists increased by $193 million (18 per cent), while imports of everything else increased by just $7 million (2 per cent).

Similarly for Turkey, 97 per cent of increased 2019 GSP imports are on the China Section 301 lists. GSP imports on Section 301 lists increased by $40 million (13 per cent), while imports of everything else increased by just $1.2 million (less than 1 per cent).

For the Philippines, GSP imports of products on China 301 lists growth helped offset declining GSP imports of all other products. South Africa, Brazil, and Egypt saw similar increases in Section 301-affected products offset losses of other products.

Not only would terminating GSP for India, Turkey, or others under review hurt many US companies and workers that have relied on GSP for years, it also would reduce viable sourcing options for companies looking to buy less from China in response to Section 301 tariffs, thereby undermining President Trump’s own objectives. (DS)

Fibre2Fashion News Desk – India

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NITI Aayog
The Top Form Brassiere Manufacturing Company Limited
Tommy Hilfiger
Vianney Textil Hogar S.A. De C.V.
Recron Polyester from Reliance Industries Limited
OVS Hong Kong Sourcing Ltd.
Gokaldas Exports Limited
Boardriders Asia Sourcing Limited
Rosset ;& Cia Limited
Esprit Europe Services GmbH
Rayonese Textile Inc., Division de Culp Inc.
Lululemon Athletica Inc
Sportmaster Ltd.
International Textile Manufacturers Federation
Aramark Uniform ;& Career Apparel, LLC
Hirdaramani International Export Private Limited
Midas Clothing Limited
Tchibo GmbH
G-Star Raw C.V.
Benetton Group
MAS Active / MAS Kreeda / MAS Bodyline
Gatsby Africa
Sateri (Jiujiang) Fiber Co.,Ltd
Gap International Sourcing Limited
T.T. Limited
Seasalt Limited
Cat Tuong Real Estate Group Joint Stock Company
Under Armour Global Sourcing Ltd
Green Fibre
Hela Clothing Pvt Ltd
Restoque S.A.
Calvin Klein
Grasim Industries Limited
Reiter India Private Limited
Desigual - ABASIC, S.A.
Amazon China
John Varvatos
IKEA of Sweden AB
Groz-Beckert East Asia LLP
Etam Group Strategy Hong Kong Limited
Arvind Limited
Alison Hayes Romania
SHAHI Exports Pvt Ltd
C;&A Sourcing International Ltd
Gloria Jeans
J ;& P Coats
IDH – The Sustainable Trade Initiative
Deckers Outdoor (Guangzhou) Consultant Co., LTD.
Lisa S.P.A.
The LYCRA Company Singapore  Pte. Ltd
Sportswear Company Spa
Phong Phu international JSC (PPJ)
Landmark Group
Varner AS Retail
Alix Partners
Chori Company Limited
H;&M Hennes ;& Mauritz (Far East) Ltd
Maceton Limited
Lenzing Aktiengesellschaft
Truetzschler India Private Limited
Bluestem Global Sourcing Limited
Page Industries Limited (Bangalore)
Helly Hansen Far East Ltd
Guess Europe Sagl,
Vardhman Textile Ltd
PVH Corporation
Tory Burch Hong Kong Ltd
KAS Direct Sourcing
Aquarelle Clothing Limited
LC Waikiki
Eastman Chemical Company
Chico’ FAS
Brandix Lanka Limited

January 2022

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