IAF president concerned about clothing exports
15/03/2017
He said these things could lead to greater protectionism and higher import duties, which would have a negative effect on world clothing exports.
Speaking at the opening of the 2017 China-Asia Textile Forum in Shanghai on March 14, he highlighted the withdrawal of the US from the Trans-Pacific Partnership (TPP) free trade deal and the UK’s decision to leave the European Union (EU) as among the key concerns.
“For sure this all leads to uncertainty for entrepreneurs, which is not a good business environment”, Mr Bekke said. “Brands and retailers might start to change their sourcing in anticipation of higher import duties that may never come.”
Mr Bekke added that there is growing pressure for companies across the supply chain to be transparent and accountable when it comes to the living and working conditions of workers in low wage countries.
He also drew attention towards an increasing focus on speed to market, saying this could result in more local manufacturing or re-shoring of production. He said the IAF is monitoring several re-shoring initiatives, including Re-shoring USA, Made in Germany 4.0, Industrie du Futur (France), and La Fabricca del Futuro (Italy).
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