AAFA Weekly Brief
May 28, 2019


Newsletter at-a-glance

AAFA encourages members to testify regarding the proposed tariffs on U.S. imports of clothes and shoes from China. The deadline to request to testify is June 10, so act now! More information is available under AAFA News.

 
Trade
May 27: ... Trump, who is on a four-day state visit, said his goal was to remove trade barriers so as to give U.S. exports a fair footing in Japan. (Source: CNBC)
 
May 27: ... The deal known as the USMCA, which would replace the 25-year-old North American Free Trade Agreement, has yet to be approved by legislatures of the three participating countries - Canada, Mexico and the United States. (Source: Reuters)
 
May 23: ... The proposal, laid out in a Federal Register notice released on Thursday, would let U.S.-based companies seek anti-subsidy tariffs on products from countries found by the U.S. Treasury Department to be engaging in competitive devaluation of their currencies. Currently no country in the world meets that criteria. But it also sets a broader standard by focusing on the “undervaluation” of currencies. (Source: Bloomberg)
 
Centric Software
Supply Chain & Manufacturing
May issue: ... With hands from across the globe now involved in building a pair of blue jeans, how do American workers and companies contribute? If you look in your closet and see only labels like “Made in Mexico” or “Made in Vietnam” you might miss it. But, looking behind the label could yield a true eureka moment. (Source: Fashion Mannuscript, op-ed by AAFA's Steve Lamar)
 
May 27: The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has initiated an independent inquiry to ascertain whether any worker was illegally terminated, in response to a complaint raised by the American Apparel and Footwear Association (AAFA). (Source: The Daily Star - Bangladesh)
 
May 23: Firms looking to shift some production to other parts of Asia face poor infrastructure, shipping delays and increased costs. (Source: Wall Street Journal)
 
Brand Protection
May 28: Two months ago, Amazon.com Inc. halted orders from thousands of suppliers with no explanation. Panic ensued - until the orders quietly resumed weeks later, with Amazon suggesting the pause was part of a campaign to weed out counterfeit products. Suppliers breathed a sigh of relief. Now a larger, more permanent purge is coming that will upend the relationship between the world’s largest online retailer and many of its long-time vendors. (Source: Bloomberg)
 
May 24: ... There’s reason to believe the problem will get worse before it gets better, too. Last June, as the trade war between China and the U.S. was beginning to heat up, several trade associations, including the American Apparel & Footwear Association, joined in writing a letter to President Trump warning that additional tariffs on imported goods could end up indirectly fueling the counterfeit industry. (Source: Footwear News)
 
May 21: A clothing and goods wholesaler from Brooklyn has been charged in U.S. District Court, Providence, with conspiracy to commit wire fraud and trafficking in counterfeit goods in connection with selling more than $20 million dollars worth of Chinese-made counterfeit goods to the U.S. military and other government purchasers, as well as to other companies that supply the U.S. government. (Source: Providence Journal)
 
AAFA News

Calling for tariff testimony: The deadline to submit a request to testify against the tranche 4 tariffs — the tariffs on the additional $300 billion in goods imported from China including apparel and footwear — is June 10. Hearings begin June 17. AAFA encourages all member companies to testify regarding the tariffs and how they would impact your business, jobs, and prices for U.S. consumers. We really can’t overstate the importance of member turnout in making the case against these tariffs. Reach out to Steve Lamar and Nate Herman for more on how to submit. They can provide further advice on how to structure your message and can help amplify your comments by connecting you with your Members of Congress.

AAFA is also coordinating with the Council of Fashion Designers of America (CFDA) to ensure that the administration hears testimony directly from designers. Finally, we encourage members to share your story with the press; reach out to AAFA's Alex Gibson for more on that opportunity. AAFA members can access a recording of our May 20 member-only webinar “The China Tariffs and What Comes Next” in the AAFA Learning Center (login required).

AAFA letters on mass firings in Bangladesh: On Friday, May 24, AAFA sent letters to the Prime Minister of Bangladesh and the President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), raising concerns with mass firings, pending criminal charges against labor leaders, and the future of worker safety in the ready-made garment sector. The letters urge withdrawal of criminal complaints against labor leaders and reinstatement of more than 1,000 workers fired following labor protests over the minimum wage earlier this year. For questions, contact AAFA’s Nate Herman.

AAFA meets with CPSC Commissioners: On May 22, AAFA team members — joined by AAFA Chairman Gary Simmons and Vice Chair Colin Browne — visited with Commissioners Adler and Baiocco at the U.S. Consumer Product Safety Commission (CPSC). Gary and Colin brought their industry experience and insight to the Commissioners to give specific examples of priorities for the apparel and footwear industry, a key community regulated by the CPSC. The Commissioners were gracious in hearing our concerns and strategized how to work together in the future. 

AAFA team members, Board leadership, and interns with CPSC Commissioner Dana Baiocco and
Chief Policy Advisor Dottie Yahr on May 22.

Product Safety next week in NYC: On June 6, AAFA will host our East Coast Product Safety & Compliance Seminar at FIT in New York. CPSC Commissioner Peter Feldman will keynote and investigators from CPSC’s Office of Import Surveillance will provide a show-and-tell in a special Safety at the Ports session. It’s not too late to register! Access the agenda and register here.

See all of AAFA’s latest letters, comments, and testimony here.

Congress and government agencies solicit comments on a range of issues that may affect your business – find a list of comment opportunities here.
 
AAFA Events
June
 
June 6 Product Safety & Compliance Seminar
June 13 Webinar: Sustainable Procurement Programs and ISO20400
June 18 Webinar: Build Online Presence For Customers Not Imposters
June 19 Webinar: Social Compliance Across New Sourcing Countries

Visit our events calendar for all AAFA webinars, scheduled events, and member/committee calls.






Product Safety & Compliance Seminar
Join us next week at FIT
 
 
 

 

 
 

 

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