Home / Knowledge / News / Textiles / TPP, TTIP could alter US textile & apparel trade
TPP, TTIP could alter US textile & apparel trade
03
Jan '14
The ongoing negotiations for two major free trade agreements, the Trans-Pacific Partnership (TPP) and the Trans-Atlantic Trade and Investment Partnership (TTIP), once materialized, could alter the US textile and apparel trade to a large extent, according to experts.
 
Once signed and implemented, the two agreements would increase the number of countries with which the US has free-trade agreements from the current 20 to 54.
 
Besides the US, the TPP encompasses 11 other countries—Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. These countries together have nearly 800 million consumers.
 
From the view of textiles and apparel industry, all eyes in the final document would be on whether a yarn-forward provision has been included or not. Free Trade Agreements (FTAs) generally follow yarn-forward principle, wherein tax benefit is applicable only on those products that are made from yarn sourced from the free-trade region.
 
However, the TPP would be different as it includes countries like Vietnam, a major garment producer and exporter which depends on yarn and fabric from other countries like China and South Korea, which are not part of the TPP negotiations.
 
The elimination of yarn-forward principle would mean that Vietnam would be able to export its garments to the US at lower or zero taxes, although the clothing is made using fabric sourced from other countries. It would mean an indirect extension of the TPP benefits to those other countries for their yarn and fabric. It would also increase the share of Vietnamese apparel in the US market.
 
The TTIP, once concluded, may further change the US textile and apparel trade, as the negotiations are with the 28-member European Union, the largest export market for the US. It is possible that the European retailers may opt to import denim from the US instead of from the Asian countries, once the treaty is in place.
 
While the TPP is expected to conclude this year, the negotiations for TTIP are in the initial stages.
 

Fibre2fashion News Desk - India


Interviews View All

Sachin Sharma, Gem Enviro Management Pvt Ltd

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Headhonchos, Indian textile value chain

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Top executives, Association

Top executives
Association

'Support and Outreach' huge relief for MSMEs

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Rajat Jaipuria,

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

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

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

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


November 2019

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

Follow us on instagram

Follow

Follow Fibre2Fashion On

Follow Fibre2Fashion On


Advanced Search