‘Yarn forward’ gives big boost to US textile exports

07/03/2014
A policy called ‘yarn forward’ has helped the US increase its textile exports by more than 40% in the last ten years. Export revenues increased from $12.7 billion in 2003 to $17.9 billion in 2013.

The North American Free Trade Agreement (NAFTA), which the US has shared with its neighbours Mexico and Canada since 1994, makes detailed provisions for trade in textiles and apparel, with ‘yarn forward’ as the main principle for its rules of origin. It means that the yarn used to make fabric must originate in a NAFTA country.

It’s on this basis that Canadian outdoor apparel brand Gildan recently announced investments worth around $250 million in total in two new yarn-spinning facilities in North Carolina. The new facilities will create approximately 500 new jobs in the region.