Western Hemisphere Textile and Apparel Trade Topics Richard Stetson Maria Dybczak Office of Textiles and Apparel (OTEXA) U.S. Department of Commerce Alston.

Western Hemisphere Textile and Apparel Trade Topics

Richard StetsonMaria Dybczak

Office of Textiles and Apparel (OTEXA) U.S. Department of Commerce

Alston & Bird LLP

October 23, 2012

Who we are…

Office of Textiles and Apparel

Office of Textiles and Apparel (OTEXA)

Develops programs and strategies to improve the competitiveness of the U.S. textile, apparel, footwear, and travel goods industries:– Compile industry data– Research and analysis– Assist in trade negotiations– Execute U.S. textile and apparel trade policy– Help U.S. textile and apparel manufacturers

with exports

Committee for the Implementation of Textile Agreements (CITA)

• The President announced the National Export Initiative (NEI) in his 2010 State of the Union address

• Goal is to Double U.S. exports in five years

Textiles and Apparel -

• World - 35% increase – 2009 >2011

• Western Hemisphere – 37% increase – 2009 >2011

2011 U.S. exports of textiles and apparel

Market Value Percent of trade

World $ 22,405,343,000 100%

Western Hemisphere $ 14,873,895,000 66%

Canada $ 4,991,479,000 22%

Mexico $ 4,898,734,000 21%

CAFTA-DR $ 3,814,837,000 17%

U.S. Imports of Textiles and Apparel

global quotas end (WTO)

Global economic slowdown

Millions $

Year

CBTPA/ATPDEA

2012 Western Hemisphere topicsElastomeric (spandex) provisionPanama FTA, October 31, 2012

Nicaragua TPL - expires December 31, 2014

Mexico - NAFTA verification audits

CAFTA- DR Cumulation

• Woven apparel• Assembly in Central America - Yarn forward rule

of origin with 7 countries (US-CA-MX woven apparel FTA) * thread, narrow elastics, etc apply

• D.R. ineligible - March 1, 2012 • Quota : 100 million SME annually

16% filled YTD• 20 million SME denim annually

• 60% filled YTD

• Reciprocal More Western Hemisphere Topics

CAFTA-DR 'Technical Fixes‘ October 13, 2012

9

• Women’s and girls’ woven sleep bottoms – cut-and-sew

• Filament yarn used as sewing thread (5402)

• Sewing thread, pocketing fabrics, visible lining fabrics, narrow elastics eligible for short supply treatment

• Open sourcing of elastomeric yarn in fabrics on the short supply list

• CBP Guidance (TBT-12-005) More Western Hemisphere Topics

Peru and Colombia

• Bilateral FTAs: U.S. - Peru; U.S. - Colombia

• Yarn forward rule• Short Supply List -18 products • CAFTA-DR Short Supply process (not

yet in effect with Colombia)• No more ATPDEA (only Ecuador)• No accumlation among Peru and

Colombia (for now…)More Western Hemisphere Topics

Accumulation - Peru/Colombia

• Article 3.3, 14. Regional Cumulation - In the light of their desire to promote regional integration, the Parties shall enter into discussions, within six months of the date of entry into force of this Agreement, ….. as a step toward achieving regional integration.

• Peru/Colombia FTA accumulation?• Andean regional (Colombia, Peru,

Ecuador…) accumulation?• Or more countries?• Requires legislation11

More Western Hemisphere Topics

otexa.ita.doc.gov

• Fibers, yarns, fabrics, buttons, buckles, zippers, ribbons, lining, labels, collars, chemicals, and machinery…for the textile, apparel, footwear, and home goods industries.

• Attended by over 16,000 persons, including 8,000 buyers, more than 400 journalists, and 520 exhibitors from 46 countries.

• USA ‘SAMPLE’ BOOTH - We market U.S. textile goods

Contact:

Richard Stetson202-482-2582

[email protected]