Transpacific Partnership to impact textiles and apparel
The twelve countries debating the Transpacific Partnership (TPP), which covers about 40% of the world economy, have agreed to terms after five days of talks in Atlanta, US.
The deal will more than likely mean that tariffs on exports of clothing from Vietnam to the US will plunge. Chinese and Taiwanese groups have been investing in the sector in Vietnam to capitalise on the benefits.
The US-based National Council of Textile Organizations said it is “anxious to learn the exact details of the final agreement”.
In 2014, textile and apparel exports from the TPP countries to the US totalled $19 billion. NCTO president Augustine Tantillo said “Due to the sheer volume of trade covered by this agreement, it was critical that the final terms strongly reflect our input. This included the need for TPP to establish a yarn-forward system as the basis for rule-of-origin determinations and the setting of multi-year tariff phase-outs on sensitive textile and apparel products. Based on our debrief with the US government in Atlanta we believe that, in great part, these key objectives were met.”
The Footwear Distributors and Retailers of America (FDRA) echoed the sentiment.
FDRA President Matt Priest commented: “We are extremely pleased and excited. The US footwear industry paid $2.7 billion in duties last year alone, more than $450 million on exports from TPP partner countries. TPP has the potential to provide a once-in-a-generation opportunity for the industry that could strengthen job creation and help drive innovation.
The American Apparel & Footwear Association also welcome the development. “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."
Companies including Patagonia disagree with the TPP.
The 12 nations are the US, Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Image courtesy of the port of Vancouver.
