OTEXA Highlights U.S. Textile and Apparel 2008 Trade Statistics, Preference Programs

Highlights of the presentation include the following statistics and information (partial list):

2008 Textile & Apparel Imports Decreased 11%, Same Top Ten Shipper Countries

According to OTEXA, in 2008¹, U.S. textile and apparel imports:

Decreased 11.2%. Imports of textiles and apparel to the U.S. were $86.7 billion in 2008, representing an 11.2% decrease from 2007's level of $96.4 billion.

List of top ten shippers unchanged. The top ten textile and apparel shippers to the U.S. were the same in 2008 as they were in 2007 (though in 2007, Vietnam was fourth and Mexico was second). The top ten shippers in 2008 were: (1) China; (2) Vietnam; (3) India; (4) Mexico; (5) Indonesia; (6) Bangladesh; (7) Pakistan; (8) Honduras; (9) Cambodia; and (10) Italy.

OTEXA adds that China, Vietnam, India, DR-CAFTA, and NAFTA together account for over 60% of U.S. imports of textiles and apparel.

2008 Textile and Apparel Exports Decreased 5%, Same Top Ten Market Countries

According to OTEXA, in 2008¹, U.S. textile and apparel exports:

Decreased 5.3%.Exports of U.S.-made textiles and apparel were $15.2 billion in 2008, representing a 5.3% decrease from the 2007 level of $16.0 billion.

List of top ten markets the same. The top ten markets for U.S. textile and apparel exports were the same in 2008 as they were in 2007 (though in 2007, China was sixth and El Salvador was fifth). The top ten export markets in 2008 were: (1) Canada; (2) Mexico; (3) Honduras; (4) Dominican Rep.; (5) China; (6) El Salvador; (7) Japan; (8) United Kingdom; (9) Germany; and (10) Belgium.

U.S. Preference Programs and Textiles and Apparel

OTEXA highlights the textile and apparel-related features/provisions of the following U.S. trade preference programs:

Andean Trade Promotion and Drug Eradication Act (ATPDEA). ATPDEA entered into force October 1, 2002 and expires December 31, 2009. It provides duty-free/quota-free treatment to apparel, footwear and textile luggage manufactured in ATPDEA beneficiary countries and includes the following features/provisions:

Apparel using fabrics/components formed or knit-to-shape in the U.S. from U.S or Andean yarns;

Apparel using llama, alpaca or vicuna fabrics/components formed or knit-to-shape in the region;

Apparel using Andean fabrics/components, subject to a cap;

Bras cut and assembled in the U.S. or the region, subject to a value requirement;

Handloomed, handmade & folklore articles;

Textile luggage assembled from U.S. yarns/fabrics;

Footwear must meet certain regional value content (non-U.S./non-ATPDEA footwear uppers not permitted);

Special rules for findings and trimmings, certain interlinings, "de minimis," and certain nylon filament yarn;

Commercial availability provision (NAFTA short supply and designated short supply)

Caribbean Basin Trade Partnership Act (CBTPA). CBTPA entered into force October 1, 2000 and expires September 30, 2010. It provides duty-free/quota-free treatment to apparel, footwear and textile luggage manufactured in CBTPA beneficiary countries and includes the following features/provisions:

Apparel of U.S. yarn/fabric, cut in U.S.;

Apparel of U.S. yarn/fabric, cut in U.S. and further processed;

Apparel of U.S. yarn/fabric/thread, cut in beneficiary country;

Apparel of U.S. yarn/regional fabric/fabric knit-to-shape, subject to a cap;

Qualifying articles include (i) non-underwear t-shirts of U.S. yarn; (ii) bras cut & assembled in U.S. or beneficiary country, subject to value requirement; (iii) handloomed, handmade and folklore articles; (iv) textile luggage made from U.S. fabric; (v) footwear must meet certain regional value content (non-U.S./non-CBTPA footwear uppers not permitted);

Special rules for findings & trimmings, certain interlinings, "de minimis," elastomeric content, and certain nylon filament yarn; and

Commercial availability provisions (NAFTA short supply and designated short supply).

African Growth and Opportunity Act (AGOA). AGOA entered into force October 1, 2000 and expires September 30, 2015. It provides duty-free/quota-free treatment to certain textile, apparel, footwear and textile luggage manufactured in qualifying sub-Saharan African (SSA) countries and includes the following features/provisions:

Allows lesser developed beneficiary countries (LDBC) to use third-country yarns/fabrics, subject to a cap until 2012;

Allows for the use of SSA yarns/fabrics, subject to a cap until 2015;

Handloomed, handmade folklore articles and ethnic printed fabrics (Category 9), designated as such by CITA;

Textile and textile articles produced entirely in a LDBC (Category 0);

Non-textile travel goods and footwear must meet regional content value;

Apparel benefits contingent on SSA country having in place effective visa system & enforcement/verification procedures;

Has "tariff snapback" in event that surge in imports of eligible articles causes serious damage/threat thereof to domestic industry;

Commercial availability provision; and

SSA exporters who engage in illegal transshipment are denied preferential benefits for five years.

Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II).HOPE II extends through September 30, 2018 the duty-free treatment provided under HOPE I for certain imported textiles and apparel wholly assembled or knit-to-shape in Haiti and includes the following features/provisions:

Allows for third-country yarns and fabrics, and co-production with the Dominican Republic;

Amount of goods receiving preferential treatment subject to rule of origin requirements and a cap;

Extends duty-free treatment (without cap limitation) to: (i) brassieres, luggage, headwear, sleepwear and articles covered by DR-CAFTA's "single transformation" rule; (ii) apparel accompanied by an earned import allowance certificate that reflects amount of credits equal to total square meter equivalents (SMES) provided under the Earned Import Allowance Program; and (iii) apparel made from yarns and fabrics in short supply.

(See presentation for further information, including details of statutory programs such as the DR-CAFTA "2 for 1" Earned Import Allowance, the Haiti "3 for 1" earned import allowance program, and the cotton and wool tariff rate quota (TRQ) programs.)

¹2008 statistics are only for the 11 month period from January-November 2008.

OTEXA presentation (dated 02/05/09) available at http://otexa.ita.doc.gov/Presentations/Post_Quota_World_Webinar.pdf