US: Garment industry backs “yarn forward” rule in TPP pact
20/07/2011 152
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The US garment industry is supporting a "yarn forward" rule of origin proposed by the US Trade Representative (USTR) during the latest round of the Trans-Pacific Partnership (TPP) agreement negotiations.
Nine Pacific Rim nations are formally involved in the multi-lateral trade talks, including the US, Vietnam Brunei, Chile, New Zealand, Singapore, Australia, Malaysia and Peru.
However, Vietnam presents a "special case", with its "non-market economy and its large state-owned and state-subsidized textile and apparel enterprises," says Cass Johnson, president of the National Council of Textile Organizations (NCTO).
And because its clothing industry imports cheap yarn and fabric, he is backing a USTR proposal that yarns; fabrics and garments must be made in the same country to receive TPP duty free benefits. Otherwise, said Johnson US textile producers would be put at a competitive disadvantage.
"We believe that the yarn forward rule of origin is the best option for the United States, [and] TPP partners," a USTR official told just-style.
July 18, 2011
Source: just-style.com
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