US: Garment industry backs ’yarn forward’ rule in TPP pact
just-style.com | 18 July 2011
US: Garment industry backs ’yarn forward’ rule in TPP pact
By MJ Deschamps
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-subsidised 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.
