Global Trade Outlook - Lenzing...
Transcript of Global Trade Outlook - Lenzing...
„ Top importing locales (apparel & non-apparel)
‟ China, Vietnam and CAFTA
Trade Overview
„ 42% of tariffs collected come from textiles and apparel
„ U.S. is largest consumer of apparel in world and continues to grow
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Legislated by Congress, trade preference programs provide duty-preference to certain textile and apparel products from designated beneficiary countries that meet the program’s rules.
African Growth and Opportunity Act (AGOA)
2000-2015 Andean Trade Promotion and
Drug Eradication Act (ATPDEA)
Expired in July 2013
Caribbean Basin Trade Partnership Act
(CBTPA) 1983-2020
Jordan/Egypt Qualifying Industrial Zones (QIZs) 1997/2005-no expiration date
Haitian Hemispheric Opportunity through Partnership
Encouragement Act / Haiti Economic Lift Program (Haiti
HOPE/HELP)
2006-2020
Preference Programs
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Qualifying Countries • Benin • Botswana • Burkina Faso • Cameroon • Cape Verde • Chad • Ethiopia • The Gambia • Ghana • Kenya • Lesotho • Liberia • Malawi • Mali • Mauritius
• Mozambique • Namibia • Niger • Nigeria • Rwanda • Senegal • Sierra Leone • South Africa* • South Sudan • Swaziland • Tanzania • Uganda • Zambia
*South Africa does not qualify as an LDC and is ineligible for 3rd party fabric provision
African Growth & Opportunity Act (AGOA)
Of the 46 members in AGOA, 25 members are eligible under the apparel provision
The apparel provision allows qualifying apparel products to enter the U.S.
duty-free and quota-free
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„ AGOA due for renewal in 2015
‟ USTR Froman has called for a review of the program to assess how we can improve and expand its reach
„ Apparel and textiles has been a key success
‟ 22% of total non-energy related exports come from textiles and apparel
AGOA Review
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0
200
400
600
800
1000
1200
2007 2008 2009 2010 2011 2012
Value of imports (
in m
illions US
D)
AGOA apparel imports (under apparel provision)
• Based on year-to-end calculations, the value of 2013 imports already exceeds every year except 2007
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Source: OTEXA. Based on year-to-end Nov. 2013 data.
$318 $299
$178
$50 $45
$0
$50
$100
$150
$200
$250
$300
$350
Lesotho Kenya Mauritius Swaziland Sub-total (non-top 4)
Value of exports (
in m
illions US
D)
Top apparel exporting AGOA members
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Egypt Qualifying Industrial Zones (QIZs)
„ Encompasses 15 designated industrial zones with more in discussion
„ The rules of origin: 35% of the product’s value is manufactured in Egypt, of which 10.5 percent must be of Israeli origin
• The rule of origin is the same for all products, including textiles and apparel.
• Jordan QIZ’s were superseded by the FTA
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„ CBTPA represents the second comprehensive expansion of the Caribbean Basin Initiative (CBI).
„ 8 designated Caribbean countries are currently eligible for CBTPA benefits.
Caribbean Basin Trade Partnership Act (CBTPA)
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„ The Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II) allows duty-free access to the U.S. market for certain Haitian-made apparel and other articles
„ Goal: Foster stability and economic development
„ Expands the benefits from the original 2006 HOPE Act
„ Haiti is required to establish an independent labor ombudsman with monitoring, evaluation and technical support from the International Labor Organization under the TAICNAR program (Technical
Assistance Improvement and Compliance Needs Assessment and Remediation Program)
Haiti – HOPE II
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Duty-free treatment for the following: ‟ up to 200 million square meter equivalents (SME) of knit apparel (with
some t-shirt and sweatshirt exclusions, which utilize CBTPA) and 200 million SMEs of woven apparel without regard to the country of origin of the fabric or components, as long as the apparel is wholly assembled or knit-to-shape in Haiti. Certain textile made-ups are also eligible.
‟ knit or woven apparel under a “two for one” earned import allowance
program
„ Haitian goods to enter the United States duty-free if shipped either directly from Haiti or through the Dominican Republic.
Haiti – HOPE II & HELP
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Preference Program
Qualifying Products Additional Information EIF
Egypt QIZs 35% QIZ added value, of which 10.5% must
come from Israel Added Value may originate in QIZ country,
Israel, or the U.S. Egypt 2004
AGOA
Apparel made in designated LDCs can be
made of 3rd-party yarns or fabrics* Apparel made of U.S. or sub-Saharan
African yarns and fabrics Apparel made of yarns and fabrics in Short
Supply
Specific Cap for 3rd party yarn ‟ 3.5% of preceding year’s total apparel imports*
2000
Preference Programs
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Preference Program
Qualifying Products Additional Information EIF
CBTPA
• Apparel sewn from fabric made and cut in the U.S. of U.S. yarn
• Apparel of U.S. fabric made of U.S. thread cut and sewn using U.S. thread
• Knit Apparel • T-Shirts • Brassieres • Certain other apparel*
Knit Apparel subject to TRQ of 970 million SMEs
T-Shirts subject to TRQ of 12 million dozens Qualifying Countries: Barbados, Belize, Guyana,
Haiti, Jamaica, Panama, St. Lucia, Trinidad and Tobago
(99% of CBTPA comes from Haiti)
2000
HOPE II /HELP
• Apparel wholly assembled in Haiti which satisfies value requirement (50% through 2014)
• All woven apparel wholly assembled in Haiti
• Certain other apparel and luggage*
Most categories of apparel imports are subject to a quantitative limit, excepting Brassieres, luggage,
and some other apparel categories
HOPE II 2008;
HELP 2010
Preference Programs
16 *Additional qualifying apparel under CBTPA can be found at http://otexa.ita.doc.gov/AGOA-CBTPA/Title_II.doc
A summary of CBTPA qualifying goods is available at http://otexa.ita.doc.gov/AGOA-CBTPA/summary_sheet.pdf
‟ Panama (EIF October 2012)
‟ Colombia (May 2012)
‟ Korea (March 2012)
‟ Peru (February 2009)
‟ Oman (January 2009)
‟ Bahrain (August 2006)
‟ CAFTA-DR
El Salvador (March 2006)
Honduras/Nicaragua (April 2006)
Guatemala (July 2006)
Dominican Republic (March 2007)
Costa Rica (January 2009)
‟ Morocco (January 2006)
‟ Australia (January 2005)
‟ Singapore (January 2004)
‟ Chile (January 2004)
‟ Jordan (December 2001)
‟ NAFTA (January 1994)
‟ Israel (September 1985)
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Free Trade Agreements (FTAs) ‟ Rules of Origin
Country Exceptions to Yarn Forward Additional Information
Australia Limited Cut-and-Sew* 7% de minimis exception*
Bahrain Limited Cut-and-Sew* 7% de minimis exception*
TPL -- 65 million sme for Cotton and MMF(expires in 2016)
CAFTA-DR
Knit Fabric ‟ Fiber Forward Wool ‟ Fabric Forward
U.S. Formed Fabric of Foreign Yarn ‟ Value Added Rule
10% de minimis exception* TPL ‟ 100 million sme for Nicaragua*
1.1 million sme for Costa Rica* (TPLs expire after 10 years)
Cumulation ‟ 100 million sme for Mexico* 2 x1 Earned Import Allowance program for the DR*
Free Trade Agreements
19 * AU & Bahrain - For a list of qualifying goods, see http://web.ita.doc.gov
Free Trade Agreements (FTAs) ‟ Rules of Origin
Country Exceptions to Yarn Forward Additional Information
Chile Yarn Forward 7% de minimis exception*
TPL ‟ 3 million sme (reduced to 2 million sme in 11th year of agreement)*
Israel 35% value-added rule Under the value added rule, fibers, yarns and/or fabrics can come from anywhere as long as 35% of the value of the product is added
in Israel.
Jordan 35% value-added rule Same as Israel
Morocco Yarn Forward
7% de minimis exception* TPL ‟ 30 million (expires in 2016, with reductions in the TPL
beginning in year five) Limited Cotton Cumulation*
Oman Yarn Forward 7% de minimis exception*
TPL ‟ 50 million sme for Cotton and MMF apparel (expires in 2019)
Free Trade Agreements
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Free Trade Agreements (FTAs) ‟ Rules of Origin
Country Exceptions to Yarn Forward Additional Information
NAFTA
MMF Sweaters ‟ Fiber Forward Certain Men’s Dress Shirts ‟ Cut & Sew
Women’s Fine Cotton Underwear & Nightwear ‟ Cut & Sew
Brassieres ‟ Cut & Sew
7% de minimis exception* Extensive TPL regime that varies by product and is different for
Mexico and Canada*
Peru
Brassieres ‟ Cut & Sew Knit Fabric ‟ Fiber Forward
Nylon Filament Yarn ‟ Can be sourced from Mexico, Canada, or Israel
Viscose Rayon Filament Yarn ‟ Can be sourced from anywhere
10% de minimis exception* Narrow Elastic Fabric, Visible Lining Fabrics, Sewing Thread and
Pocketing Fabrics must be sourced within the region
Singapore Brassieres ‟ Cut & Sew
Linen/Silk Apparel ‟ Cut & Sew 7% de minimis exception*
TPL ‟ 25 million sme, expired in 2012
Colombia
Brassieres ‟ Cut & Sew Knit Fabric ‟ Fiber Forward
Nylon Filament Yarn ‟ Can be sourced from Mexico, Canada, or Israel
Viscose Rayon Filament Yarn ‟ Can be sourced from anywhere
10% de minimis exception* Narrow Elastic Fabric, Visible Lining Fabrics, Sewing Thread and
Pocketing Fabrics must be sourced within the region
Free Trade Agreements
21 *NAFTA TPLs - For a breakout of TPLs, see
http://web.ita.doc.gov/tacgi/fta.nsf/FTA/NAFTA?opendocument&country=NAFTA
Free Trade Agreements (FTAs) ‟ Rules of Origin
Country Exceptions to Yarn Forward Additional Information Textile Safeguard
Korea Yarn Forward
7% de minimis exception* Rule of origin excludes certain components ‟ sewing thread,
narrow fabrics and pocketing fabrics -- that are required under CAFTA-DR and important to U.S. producers.
No
Panama
Yarn Forward Nylon Filament Yarn ‟ Can be sourced from Mexico, Canada, or
Israel Certain Socks ‟ Sewn & Assembled
from U.S. knit-to-shape Certain Guayabera-Style Dresses and
Shirts ‟ Cut & Sew
10% de minimis exception* Narrow Elastic Fabric, Visible Lining Fabrics, Sewing Thread and
Pocketing Fabrics must be sourced within the region Yes
Free Trade Agreements
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„ Central America is the second largest textile export market for U.S. (after NAFTA)
„ In 2010, nearly 70 percent of U.S. imports of apparel under CAFTA-DR were sewn from regional fabric and yarn.
„ End of 2014 expiration of Nicaragua Tariff Preference Limits (TPLs)
CAFTA - DR
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0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
_CAFTA-DR _NAFTA Peru Korea, South Colombia
Millionen
US apparel imports by FTA area (2013, year end)
Australia Brunei Chile
New Zealand Singapore Peru United States Vietnam
Malaysia
Mexico
Canada Japan
„ High-standard FTA with 12 participating countries ‟ 21st century agreement addressing IPR, labor and environmental issues
„ Framework for the future ‟ High-standard, addresses non-traditional trade issues
‟ Created to allow for the inclusion of new members
„ Timeline
‟ Expect to conclude negotiations early 2014
TPP
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TPP
„ Apparel imports from TPP members make up 17% of total U.S. imports and are the fastest growing markets
„ Increases market access for exporters in growing markets for U.S. textiles and apparel
„ Streamlines foreign regulatory processes in TPP markets to facilitate greater participation by U.S. companies
„ Promotes regional integration and assures that benefits of the agreement accrue to other partners when possible
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TPP & Bilateral Opportunities
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„ Rising costs in Asia
„ US advantages in Yarn Production
‟ Low energy costs
‟ Positive and secure investment climate
„ Globally competitive
‟ Integrates US supply chain more closely with partners
„ Supports US jobs
‟ 1,860 jobs created in past 6 months
„ In the context of yarn forward, investment in textile manufacturing has been shifting back to the US
„ Primarily in Southeast region
„ $753 million just in the last 6 months
„ TPP has potential to further spur domestic investment
Company Company Nationality Investment Location(s) Investment Amount Estimated Job Creation
Gildan Canada Salisbury, NC Mocksville, NC Clarkton, NC
$250 million 500-700 jobs
Parkdale USA Raburn Gap, GA $85 million 210 jobs
Shrivallabh Pittie Group India Screven County, GA $70 million 250 jobs
Gulf Coast/Zagis USA Mexico Bunkie, LA $130 million 300 jobs
Keer China Lancaster County, SC $218 million 500 jobs
TPP & domestic investment
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Source: OTEXA. Based on year-to-end Nov. 2013 data.
0,00
2000,00
4000,00
6000,00
8000,00
10000,00
12000,00
14000,00
CanadaMalaysia
MexicoPeru
VietnamTPP total
Value (in m
illions US
D)
U.S. Apparel Imports by TPP members
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„ While we believe that a yarn forward rule is the best way to promote regional integration, encourage investment and create sustainable supply chains, we realize that some products may not be available from TPP partners.
„ Thus, in order to maximize the eligibility of textile and apparel products for duty preference, we have created a completely new way to establish products in short supply and allow their importation as “cut and sew”
Short supply concept
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• NAFTA style: request rule of origin change for specific product that allows sourcing of fiber, yarn, or fabrics from outside region. U.S. first vets domestically, then consults with trading partners.
• CAFTA style: request that a specific fiber, yarn, or fabric be placed on a list that can be used in any product. Request/offer between businesses with U.S. Government determining based on submitted information whether product is available. Any availability can potentially remove a product from consideration.
Current short supply process: NAFTA & CAFTA
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• Governments will agree to shorts supply lists of fibers, yarns, and fabrics that can be sourced from outside the region for qualifying products. These lists will be part of the agreement when implemented
• Products must be “commercially available” to meet market needs.
• No voluminous request/offer communications need be provided
• Governments have vetted proposed products with their industries and discuss concerns to reach a resolution on which products will be included on the short supply lists
• The countries will work together to determine if products are in short supply on a temporary or permanent basis
New for TPP: Negotiated SSL
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„ Example - 5506.3000 ‟ acrylic or modacrylic synthetic staple fiber, carded.
Entire HTS classification
„ Example - 100 percent cotton yarn-dyed woven flannel fabrics, made from 14 through 41 NM single ring-spun yarns, classified in 5208.43.0000, weighing 200 grams per square meter or less.
Subset of HTS classification
„ Example ‟ Breathable, waterproof, laminated, Man Made Fiber wovens with DWR finish used in Men's or boys', women's, or girls coats, anoraks (including ski-jackets), windbreakers and similar articles
Product with a specified end-use
Qualifying product descriptions
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„ Launched summer of 2013
„ Would include the 28 EU member states
„ Comprehensive trade and investment agreement aimed to increase international competitiveness and boost growth
„ Potential to add 13 million jobs in both the US and EU
„ Third round of negotiations held in Dec. 2013
TTIP
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„ Textiles
‟ Negotiations so far focused on regulatory issues
‟ Indicated interest in negotiating specific sectoral commitments in textiles
‟ Rules of origin have been discussed generally
TTIP
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95.002
221.544 224.577
398.894 403.951
0
100.000
200.000
300.000
400.000
500.000
W & G Slacks,Shorts,Pants Waste & Tow, Staple Filament Yarn Felts & Other Non-Woven Speclty & Indstrl Fabs
in m
illions US
D
Top 5 US exports in textiles and apparel to EU (28)
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2.052
1.912
1.746
1.158
1.042
0
500
1.000
1.500
2.000
2.500
apparel non-apparel MMF products MMF non-apparel wool products
in m
illions US
D Top 5 EU imports in textiles and apparel
to US
United States Trade Representative Executive Office of the President
Gail W. Strickler
Assistant U.S. Trade Representative for Textiles & Apparel
(202) 395 – 3026
[email protected] http://www.ustr.gov/trade-topics/textiles-apparel
http://otexa.ita.doc.gov/
http://www.cbp.gov/
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