USTR, AAFA to encourage greater nearshoring of apparel production


The Office of the United States Trade Representative (USTR) is committed to working with the American Apparel and Footwear Association (AAFA) and other stakeholders to encourage greater reshoring and nearshoring of apparel production, and to do so in ways that will North American textile and clothing supply chain.

This commitment was expressed this week during a round table discussion with senior officials from AAFA to discuss how US apparel brands and retailers are creating new economic opportunities in Central America, particularly El Salvador, Guatemala and Honduras, under the Dominican framework Republic-Central America-US Free Trade Agreement (CAFTA-DR).

The round table was jointly chaired by US sales representatives Sarah Bianchi and Jayme White. Michael Pyle, Chief Economic Advisor to the Vice President, also attended.

The Office of the United States Trade Representative (USTR) is committed to working with the American Apparel and Footwear Association (AAFA) and other stakeholders to encourage greater reshoring and nearshoring of apparel production, and to do so in ways that will North American textile and clothing supply chain.

Attendees discussed the recent changes in global apparel sourcing and related opportunities to expand apparel sourcing for the US market from the Western Hemisphere, including Central America.

AAFA member company executives shared their ideas on how US trade policy can encourage US textile and apparel investment and incentivize the production of larger and more diverse apparel products in the CAFTA-DR region.

Ambassadors White and Bianchi underlined the importance of the Agreement’s Rules of Origin (RoO) in promoting investment in textile production and supporting manufacturing jobs in both Central America and the United States.

The roundtable is gaining traction as AAFA represents more than 1,000 world-renowned brands, retailers and manufacturers who together contribute more than $ 350 billion to annual US retail sales. Your decision to promote nearshoring will have an impact on garment manufacturing and export to traditional supplier countries / regions.

As a result of the nearshoring trend, US clothing imports from Honduras, El Salvador and Guatemala increased by 56.27 percent, 54.97 percent and 38.68 percent, respectively, from January to September 2021, according to data from the Office of Textiles and Apparel ( OTEXA.). ). These countries together accounted for 7.73 percent of all US clothing imports in the reporting period. If you also add Mexico, another neighboring country of the USA, the share rises to 11.28 percent or 6.608 billion dollars of over 58 billion dollars in clothing imports from the USA.

Fibre2Fashion News Desk (RKS)


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