February 13, 2013 - New Report – U.S. Workers Play Critical Role in Today’s U.S. Apparel Global Value Chains

February 13, 2013 - Study Finds U.S. Workers Contribute Substantially to U.S. Apparel Imports

September 17, 2012 - TPP Apparel Coalition Continues to Press Negotiators for Flexible Apparel Rules
 
May 1, 2012 - AAFA Welcomes Warner Letter on TPP Negotiations

March 9, 2012 - TPP Apparel Coalition Advocates for Modern TPP in Australia

September 15, 2011 - TPP Talks Offer Great Potential to Promote U.S. Jobs and U.S. Exports

September 8, 2011 - TPP Apparel Coalition Launches Web Site to Kick Off Chicago Round

June 27, 2011 - TPP Apparel Coalition Calls for Market-Opening Apparel Agreement




Policy Position

TPP Apparel Coalition Position Statement

TPP Apparel Coalition Customs Proposal

How to Assess the Ability of a Short-Supply Process to Promote Trade and Investment in Apparel in the TPP



Fact Sheets

Documents Necessary to Verify Yarn Forward Claims.
March 2014

Common Myths about the Trans-Pacific Partnership and the Yarn Forward Rule of Origin
March 2013


Flexibility Briefs
Last Updated: August 2013

The United States has considerable experience with flexibilities in its free trade agreements (FTAs) and trade preference programs.   Many of these flexibilities are included in agreements that are based around a yarn forward concept, reinforcing the notion that flexibilities are needed to facilitate trade and investment in a restrictive yarn forward environment.  The following 7 papers of 7 briefs review some of those flexibilities and discuss the apparel industry’s experiences with them: 

Cut and Sew

Tariff Preference Levels (TPLs)

Regional Value Content (RVC)

Short Supply (Commercial Availability)

Export Matching

Cumulation

Fabric Forward

Charts
Last Updated: May 2015

Many have argued that a “Yarn-Forward” rule promotes trade,  particularly U.S. textile exports. The reality is much different. Further, many argue that U.S. textile exports can’t compete without a “Yarn-Forward” rule. However, some of the fastest-growing, and largest, markets for U.S. textiles are with countries that the United States does not have a free trade agreement with a “Yarn-Forward” rule.  The charts below provide a statistical underpinning separating the rhetoric from the facts.
 
U.S. Apparel Imports from Free Trade Agreement (FTA) Countries vs. Rest of World (ROW)
This chart shows that “Yarn-Forward” rules have not generated new trade, as many claim. Instead, the chart shows that “Yarn-Forward” rules in U.S. free trade agreements (FTAs) have stifled apparel trade.

CAFTA-DR – U.S. Apparel Imports and U.S. Yarn & Fabric Exports
The U.S./Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) has long been held up as the poster-child as to how “Yarn-Forward” works. This charts dispels the myths, showing that U.S. apparel imports from the CAFTA-DR countries have fallen while U.S. yarn and fabric exports to the CAFTA-DR region have barely changed since CAFTA-DR went into effect.

NAFTA– U.S. Apparel Imports and U.S. Yarn & Fabric Exports
The concept of “Yarn-Forward” was created in under the North American Free Trade Agreement (NAFTA). Even though the NAFTA region (Mexico and Canada) remains the largest market for U.S. yarn and fabric exports, that market hasn’t really benefitted from or grown under the “Yarn-Forward” rule. Meanwhile, U.S. apparel imports from the NAFTA region continue their long-term decline.

U.S. Yarn & Fabric Exports to China
Many claim that U.S. textile manufacturers can’t compete without a “Yarn-Forward” rule. This chart explores how U.S. textile manufacturers, making the most innovative and highest quality yarns and fabrics in the world, can compete in any market, including the one market where there will never be a “Yarn-Forward” rule – China. U.S. yarn and fabric exports to China have more than quintupled over the last decade. In fact, in direct contrast to much of the rhetoric, the Chinese market hits the tri-fecta for the U.S. textile industry – China is the #1 market for U.S. cotton (not pictured), the #2 market for U.S. yarn, and the #3 market for U.S. fabric.

U.S. Yarn & Fabric Exports to Vietnam
U.S. textile manufacturers can compete against anyone in the world, even in the TPP region. This chart shows that U.S. yarn and fabric exports to Vietnam, a TPP partner, continue to grow, continuing a meteoric rise in exports over the last decade. A “Yarn-Forward” rule is not only unnecessary for U.S. textile manufacturers to compete in the TPP region, but would actually hurt U.S. textile manufacturers, as U.S. yarn and fabric are combined with yarn and fabric from other countries to make apparel in Vietnam, apparel that would NOT qualify under a “Yarn-Forward” rule.

U.S. Yarn & Fabric Exports to Malaysia
Again, U.S. textile manufacturers can compete against anyone in the world, even in the TPP region. This chart shows that U.S. yarn and fabric exports to Malaysia, a TPP partner, continue to grow at a rapid rate. A “Yarn-Forward” rule is not only unnecessary for U.S. textile manufacturers to compete in the TPP region, but would actually hurt U.S. textile manufacturers, as U.S. yarn and fabric are combined with yarn and fabric from other countries to make apparel in Malaysia, apparel that would NOT qualify under a “Yarn-Forward” rule.

U.S. Yarn & Fabric Exports to Japan
As with China, U.S. textile manufacturers can compete against anyone in the world, even in a market like Japan that is also a major manufacturer of high-end textiles. This chart shows that Japan has always been a big market for U.S. yarn and fabric exports and is now growing. Again, a “Yarn-Forward” rule is not only unnecessary for U.S. textile manufacturers to compete in Japan, but would actually hurt U.S. textile manufacturers, as U.S. yarn and fabric are combined with yarn and fabric from other countries to make apparel in Japan, apparel that would NOT qualify under a “Yarn-Forward” rule.

U.S. Apparel Exports to Japan
As avid buyers of anything Americana, Japan presents a great opportunity for U.S. apparel manufacturers. Already, Japan is the 2nd largest market for U.S.-made finished apparel, and growing. Again, a “Yarn-Forward” rule is not only unnecessary for U.S. apparel manufacturers to compete in Japan, but would actually hurt U.S. apparel manufacturers, as most current U.S. apparel exports to Japan would NOT qualify under a “Yarn-Forward” rule, as most U.S.-made apparel for the commercial market is made from a combination of U.S. and foreign yarns and fabrics.

Breakout of Duties Paid by Vietnam
This chart demonstrates that ¾ of all duties paid on Vietnam’s exports to the United States are on apparel. Further, Vietnam’s exports to the United States are subject to the third highest duties paid on U.S. imports from any country. That means that for Vietnam to open its market to U.S. manufacturers, U.S. farmers, and U.S. service providers, and for Vietnam to agree to 21st century commitments on labor, the environment, data privacy, and other key issues, Vietnam must get in return real market access for its #1 export – apparel. And, as Vietnam has made abundantly clear, “yarn-forward” is NOT real market access for apparel.

Vietnam Textile Imports from TPP and Other Key Suppliers
This chart demonstrates that Vietnam relies on a number of suppliers from around the world for its textile inputs, most of whom are not participants in the current TPP negotiations.  In fact, only 12.1% of Vietnam’s total imports of textile inputs came from TPP countries in 2012, the most current data available.



Reports

Study Finds U.S. Workers Contribute Substantially to U.S. Apparel Imports
Authored by: Moongate Associates

Preliminary findings from economist’s report showing 70-80% of the retail value of an imported product stays in the United States supporting U.S. workers, U.S. businesses, and the U.S. economy
Authored by: Moongate Associates

Trade Patterns and Global Value Chains in East Asia: From Trade in Goods to Trade in Tasks
Authored by: World Trade Organization and Institute of Developing Economies



Presentations

In Support of a Modern Trade Agreement
May 2013  |  Given by: Target Sourcing Services

Toward a 21st Century TPP Agreement for Apparel
April 2013  |  Given by: TPP Apparel Coalition

U.S. Government PowerPoint Outlining Short Supply Concept
January 2013  |  Given by: U.S. Government

Toward a 21st Century TPP Agreement for Apparel
December 2012  |  Given by: TPP Apparel Coalition

TPP Opportunities for the Global Apparel Value Chain
October 2011   |   Given by: USA-ITA

Apparel Value Chains and Opportunities to Create Jobs in the TPP
September 2011   |   Given by: Target

Achieving 21st Century Terms of Trade for Apparel and Footwear in the TPP
June 2011   |   Given by: American Apparel & Footwear Association

TPP Apparel Coalition
June 2011   |   Given by: TPP Apparel Coalition

Trans-Pacific Partnership Agreement: A Case Study
June 2011   |   Given by: Levi Strauss & Co.

Customs Procedures and Utilization of FTAs
June 2011   |   Given by: Target

Overview of Garment 10 Joint Stock Company
June 2011   |   Given by: Garment 10 Joint Stock Company

The Supply Chain Structure for the Apparel Industry and the Role of TPP
March 2011   |   Given by: Levi Strauss & Co.



February 3, 2016 - TPP Apparel Coalition Applauds Signing of the TPP

July 23, 2015 - Bipartisan Letter from 23 House Members Urging Commercially Meaningful Provisions for Apparel

July 21, 2015 - TPP Apparel Coalition Letter Advocating Commercially Meaningful Provisions 

November 6, 2014 - 

Thirteen industry groups, from Australia, Canada, Malaysia, Singapore, Vietnam and the U.S., joined together in support of the Coalition principles for the TPP apparel text

December 3, 2013 - Letter from 12 U.S. Senators to President Barack Obama

November 21, 2013 - Letter from 44 U.S. Representatives to President Barack Obama

September 19, 2012 - U.S. Textile Associations Joint Letter to U.S. Trade Representative Ron Kirk Opposing THA TPP Proposal

September 7, 2012 - U.S. Agriculture Community Letter to U.S. Government on Importance of Vietnam in TPP to U.S. Agriculture and the Need to Negotiate a Comprehensive TPP Agreement
 
May 1, 2012 - Letter from 15 U.S. Senators to President Barack Obama

October 25, 2011 - Letter from 30 U.S. Representatives to U.S. Trade Representative Ron Kirk

September 9, 2011 - Letter from Senator Ron Wyden (D-OR) to U.S. Trade Representative Ron Kirk