Fashion
US, Canadian, Mexican trade bodies urge US govt to extend USMCA
NCTO expressed strong support for preservation of the current exemption of USMCA-qualifying trade from International Emergency Economic Powers Act (IEEPA) tariffs imposed to curb the flow of illicit fentanyl and illegal migration, while also calling for a similar exemption for qualifying trade under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) currently subject to IEEPA reciprocal tariffs, in public comments submitted to the US Trade Representative’s (USTR) office.
Welcoming the review of the US-Mexico-Canada Agreement (USMCA), the US National Council of Textile Organizations recently urged the US administration to strengthen and extend the trade deal.
Meanwhile, AAFA and nine other fashion and retail trade bodies from the US, Canada and Mexico also wrote to the USTR requesting him to preserve the trilateral pact and extended it for 16 more years.
Meanwhile, the American Apparel & Footwear Association (AAFA) and nine other fashion and retail trade bodies from the United States, Canada and Mexico also wrote to the USTR requesting him to preserve the trilateral agreement and extended it for 16 more years.
“The USMCA’s clear, predictable rules of origin have been critical for our industries, and we believe overly burdensome and complex requirements would create unnecessary barriers and increase costs for businesses and working families,” they wrote.
“Further, maintaining duty-free access for USMCA-qualifying goods and avoiding additional tariffs, including under Section 232 of the Trade Expansion Act of 1962, for such goods is essential to enhancing supply chain integration and ensuring the region remains globally competitive,” the trade bodies said.
“We also urge the Administration to provide sufficient advance notice and clear compliance guidance prior to making any changes to the agreement,” they said.
The US textile industry ships $12.3 billion, or 53 per cent, of its total global textile exports to Mexico and Canada—by far the largest export markets for American textile producers. Those component materials often come back as finished products to the United States under the USMCA.
Key areas outlined by the NCTO for improvement of the USMCA include preserving and strengthening the agreement’s yarn-forward rule of origin, by limiting harmful exceptions to the rule, such as tariff preference levels and single transformation rules that weaken regional supply chains and disadvantage US manufacturers, and strengthening USMCA customs enforcement cooperation.
Fibre2Fashion News Desk (DS)