AAFA Weekly Brief
June 11, 2019


Newsletter at-a-glance

In the past few days, Mexico tariffs were suspended indefintely and the deadline to request to testify on the next round of China tariffs closed. For the latest details on the current trade environment and AAFA activities, see AAFA News.

 
Trade
June 10: ... In a wide-ranging telephone interview on “Squawk Box,” Trump defended his threats to slap tariffs on Mexico and China, which he said are putting the U.S. “at a tremendous competitive advantage.” “The China deal is going to work out. You know why? Because of tariffs,” Trump told co-host Joe Kernen. “Right now, China is getting absolutely decimated by companies that are leaving China, going to other countries, including our own, because they don’t want to pay the tariffs.” (Source: CNBC)
 
June 6: ... While Trump said on Thursday that talks with China were ongoing, no face-to-face meetings have been held since May 10, the day he sharply increased tariffs on a $200 billion list of Chinese goods to 25%, prompting Beijing to retaliate. (Source: Reuters)
 
June 5: ... The American Apparel & Footwear Association, which represents brands including New Balance and Adidas, has warned the US government that the withdrawal of India's GSP benefits would leave companies with "no choice but to return to sourcing from China." It added that tariffs on Chinese imports meant that "American consumers will pay far higher prices for their travel goods as a result." (Source: BBC)
 
Centric Software
Naylor Association Solutions
Supply Chain & Manufacturing
June 9: ... Vietnam said on Sunday that it found dozens of fake product-origin certificates and illegal transfers by companies trying to sidestep U.S. tariffs on everything from agriculture to textiles and steel. It was one of the first times an Asian government has publicly alleged such misbehavior since trade tensions between the world’s two biggest economies escalated this year. (Source: Bloomberg)
 
June 7: U.S. Army clothing experts are testing new, extreme cold weather gear that's designed to be lighter, better-fitting and more effective in colder conditions than the current layering system. (Source: Military.com)
 
June 4: ... as companies have been working to diversify their supply chains for the past decade — mainly due to rising costs in China — the looming threat of tariffs has led some to escalate these plans, according to Stephen Lamar, executive vice president of the American Apparel & Footwear Association. (Source: WWD - login required)
 
Brand Protection
June 11: ... The rise of online shopping has certainly kept Elliott busy. Over the last five years, the [Canadian Anti-Fraud Centre] has helped 42,000 victims of counterfeit fraud recover nearly $15 million. In 2018 alone, more than 12,000 victims recovered about $4.2 million. (Source: Yahoo Finance)
 
June 10: Counterfeit goods worth around €112bn were imported into the EU in 2016, says the EU Intellectual Property Officer (EUIPO), a sizeable uptick from the level seen in an earlier study. (Source: Securing Industry)
 
Naylor Association Solutions
AAFA News
Mexico tariffs "indefinitely suspended": On Friday, President Trump “indefinitely suspended” the proposed 5 percent tariffs on U.S. imports from Mexico that the administration had planned to implement this week. This came after AAFA and the National Council of Textile Organizations (NCTO) sent a joint letter to the President urging him not to impose tariffs on trade with Mexico. AAFA had also joined a letter with more than 100 other trade associations on this topic.
 
China tariff update: Yesterday was the deadline to request to testify in Washington regarding the proposed tariffs on $300 billion worth of U.S. imports from China, including all apparel and footwear items. Testimony will begin on June 17 and AAFA's President and CEO Rick Helfenbein has requested to testify on behalf of the industry. If your company is testifying, AAFA is happy to help fine-tune your remarks - please contact Steve Lamar or Nate Herman.
 
Last week, AAFA also joined a letter with the Americans for Free Trade coalition, raising concerns with the exclusion process for the third tranche of tariffs on U.S. imports from China, which includes all travel goods and was increased from 10% to 25% in May.
 
GSP under attack: In recent weeks, the administration has removed preferential treatment for India and Turkey under the Generalized System of Preferences (GSP) program. Indonesia and Thailand are also under review. As these countries are key sources of travel goods for the U.S. market, AAFA members are encouraged to contact their Members of Congress regarding the importance of the program to your supply chains. For assistance, please contact Steve Lamar or Nate Herman.

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.
 

Member Welcome: Tennessee Apparel

Tennessee Apparel was founded in 1901 as a Tennessee Corporation and manufactured work clothing for a number of years before converting practically its entire production capability to the manufacturing of military clothing. The company has been manufacturing predominantly for the military since 1957 and has produced in excess of fifty (50) million items of clothing for the military.

 
AAFA Events
June
 
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.






AAFA’s Traceability Seminar heads to
Target’s headquarters in Minneapolis
August 7
 

 

 
 

 

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