Western Hemisphere Textile and Apparel Trade Topics Richard Stetson Maria Dybczak Office of Textiles and Apparel (OTEXA) U.S. Department of Commerce Alston & Bird LLP October 23, 2012

Who we are… Office of Textiles and Apparel

Office of Textiles and Apparel (OTEXA) Develops programs and strategies to improve the competitiveness of the U.S. textile, apparel, footwear, and travel goods industries: –Compile industry data –Research and analysis –Assist in trade negotiations –Execute U.S. textile and apparel trade policy –Help U.S. textile and apparel manufacturers with exports Committee for the Implementation of Textile Agreements (CITA)

The President announced the National Export Initiative (NEI) in his 2010 State of the Union address Goal is to Double U.S. exports in five years Textiles and Apparel - World - 35% increase – 2009 >2011 Western Hemisphere – 37% increase – 2009 >2011

2011 U.S. exports of textiles and apparel MarketValuePercent of trade World$ 22,405,343,000100% Western Hemisphere$ 14,873,895,00066% Canada$ 4,991,479,00022% Mexico$ 4,898,734,00021% CAFTA-DR$ 3,814,837,00017%

U.S. Imports of Textiles and Apparel global quotas end (WTO) Global economic slowdown Millions $ Year CBTPA/ATPDEA

2012 Western Hemisphere topics Elastomeric (spandex) provision Panama FTA, October 31, 2012 Nicaragua TPL - expires December 31, 2014 Mexico - NAFTA verification audits

CAFTA- DR Cumulation Woven apparel Assembly in Central America - Yarn forward rule of origin with 7 countries (US-CA-MX woven apparel FTA) * thread, narrow elastics, etc apply D.R. ineligible - March 1, 2012 Quota : 100 million SME annually 16% filled YTD 20 million SME denim annually 60% filled YTD Reciprocal More Western Hemisphere Topics

CAFTA-DR 'Technical Fixes October 13, Womens and girls woven sleep bottoms – cut-and-sew Filament yarn used as sewing thread (5402) Sewing thread, pocketing fabrics, visible lining fabrics, narrow elastics eligible for short supply treatment Open sourcing of elastomeric yarn in fabrics on the short supply list CBP Guidance (TBT ) More Western Hemisphere Topics

Peru and Colombia Bilateral FTAs: U.S. - Peru; U.S. - Colombia Yarn forward rule Short Supply List -18 products CAFTA-DR Short Supply process (not yet in effect with Colombia) No more ATPDEA (only Ecuador) No accumlation among Peru and Colombia (for now…) More Western Hemisphere Topics

Accumulation - Peru/Colombia Article 3.3, 14. Regional Cumulation - In the light of their desire to promote regional integration, the Parties shall enter into discussions, within six months of the date of entry into force of this Agreement, ….. as a step toward achieving regional integration. Peru/Colombia FTA accumulation? Andean regional (Colombia, Peru, Ecuador…) accumulation? Or more countries? Requires legislation 11 More Western Hemisphere Topics

otexa.ita.doc.gov

Fibers, yarns, fabrics, buttons, buckles, zippers, ribbons, lining, labels, collars, chemicals, and machinery…for the textile, apparel, footwear, and home goods industries. Attended by over 16,000 persons, including 8,000 buyers, more than 400 journalists, and 520 exhibitors from 46 countries. USA SAMPLE BOOTH - We market U.S. textile goods

Contact: Richard Stetson otexa.ita.doc.gov