Blog: Is CAFTA losing momentum?
Leonie Barrie | 1 July 2005
Does yesterday’s narrow vote by the US Senate in favour of CAFTA signal serious trouble for the pact when it gets to the House of Representatives? That at least is what US trade groups are saying. Admittedly they have fought a long, hard campaign against the trade agreement, but they do point out that: “This vote should have been a blowout, especially considering that the US Senate traditionally is strongly supportive of free trade and that CAFTA opponents put almost no resources into lobbying that body.”
Apparently the 54 to 45 vote represents the low water mark for any free trade agreement (FTA) considered by the US Senate. The previous closest vote was a 61 to 38 vote for NAFTA, while the Chile FTA passed 65 to 32, the Singapore FTA passed 66 to 32, the Morocco FTA passed 85 to 13 and the Australia FTA passed 80 to 16.
The last hurdle to the pact’s implementation is a vote by the House of Representatives some time after July 11. Opposition from lawmakers in states that rely on the textile industry is expected to be strong. They believe CAFTA will be a “job killer for textiles” as it includes more loopholes to outsource US textile and apparel jobs than NAFTA. If fully utilised, the cumulation, tariff preference level, single transformation, and non-essential fabric loopholes will reduce US textile and apparel exports to the region by 20 to 25 per cent, they argue.
Fashion retailer H&M and UK based glove and leather manufacturer Pittards both say they are monitoring the situation in Ethiopia closely after the country's government declared a state of emergency af...
Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...
The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...
The results of two highly-anticipated initiatives in the sportswear sphere were revealed last week: the launch of Under Armour’s new UAS lifestyle brand and the first pair of running shoes created at ...
- Fashion fit for the future – strategies for speed
- Will new Vietnam wage hinder competitiveness?
- Digitisation to drive new apparel-making models
- Under Armour Lighthouse will disrupt production
- How TAL Apparel is staying ahead of the game
- Gap to shutter all UK Banana Republic stores
- M&S "unappealing" clothing a barrier to growth
- MAS Holdings shares commitment to sustainability
- Reebok Liquid Factory reinvents shoe production
- Bangladesh tops China as lead cotton importer
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020