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NCTO, AAFA to review TPP text
06 Nov '15
3 min read
Two of America's major trade bodies, the National Council of Textile Organisations (NCTO) and the American Apparel & Footwear Association (AAFA) have said they would initiate a thorough analysis of the Trans Pacific Partnership (TPP), the text of which has been released by the Office of the US Trade Representative.
In a press release, the NCTO said the release of the TPP text will allow NCTO to begin an exhaustive review of the details of the agreement. NCTO will immediately initiate a thorough analysis of the text to determine its impact on its members, the US textile industry as a whole, and its Western Hemisphere trading partners.
“Based on our generalized understanding of the final agreement reached last month, we believe that many of the US textile industry's key objectives have been met, including a yarn forward rule of origin for most products and reasonable duty phase-outs for sensitive textile and apparel items. While we need to thoroughly familiarize ourselves with the fine details of the agreement, we feel that the US government was able to achieve a well-balanced outcome for all parties, including US textile manufacturers and our partners in the Western Hemisphere,” NCTO said.
The AAFA said free trade agreements have the potential to help US industries, including its members, access new markets, new suppliers, and new customers.
"The Trans-Pacific Partnership agreement represents nearly 40 per cent of the world's economy and could present a tremendous opportunity for our industry. We are hopeful that the final agreement contains provisions to enable our members-as well as the millions of US workers they employ and the billions of customers they serve-to benefit from the deal as soon as it is implemented,” it said in a statement.
AAFA said it looked forward to reviewing the details of the agreement. “Throughout this process, we communicated what's needed to create trade opportunities for the clothing and shoe industry. Now we plan to evaluate those provisions that impact the industry, review the details, and consult with our members," it said.
The much-awaited full text of the 12-nation TPP reveals that many tariffs on US exports of textiles and apparel to the other TPP markets will reduce to zero on day one.
While the TPP requires a “yarn forward” rule of origin to ensure that the benefits of the pact go to workers and businesses in the 12-member countries, the chapter on Textiles and Apparel includes a “short supply list,” which provides TPP partners with flexibilities in cases where the TPP members do not produce enough of a particular fabric or yarn to meet production needs. (SH)
In a press release, the NCTO said the release of the TPP text will allow NCTO to begin an exhaustive review of the details of the agreement. NCTO will immediately initiate a thorough analysis of the text to determine its impact on its members, the US textile industry as a whole, and its Western Hemisphere trading partners.
“Based on our generalized understanding of the final agreement reached last month, we believe that many of the US textile industry's key objectives have been met, including a yarn forward rule of origin for most products and reasonable duty phase-outs for sensitive textile and apparel items. While we need to thoroughly familiarize ourselves with the fine details of the agreement, we feel that the US government was able to achieve a well-balanced outcome for all parties, including US textile manufacturers and our partners in the Western Hemisphere,” NCTO said.
The AAFA said free trade agreements have the potential to help US industries, including its members, access new markets, new suppliers, and new customers.
"The Trans-Pacific Partnership agreement represents nearly 40 per cent of the world's economy and could present a tremendous opportunity for our industry. We are hopeful that the final agreement contains provisions to enable our members-as well as the millions of US workers they employ and the billions of customers they serve-to benefit from the deal as soon as it is implemented,” it said in a statement.
AAFA said it looked forward to reviewing the details of the agreement. “Throughout this process, we communicated what's needed to create trade opportunities for the clothing and shoe industry. Now we plan to evaluate those provisions that impact the industry, review the details, and consult with our members," it said.
The much-awaited full text of the 12-nation TPP reveals that many tariffs on US exports of textiles and apparel to the other TPP markets will reduce to zero on day one.
While the TPP requires a “yarn forward” rule of origin to ensure that the benefits of the pact go to workers and businesses in the 12-member countries, the chapter on Textiles and Apparel includes a “short supply list,” which provides TPP partners with flexibilities in cases where the TPP members do not produce enough of a particular fabric or yarn to meet production needs. (SH)
Fibre2Fashion News Desk – India
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