Blog: Sourcing uncertainty accelerates
Leonie Barrie | 28 November 2016
The result of the US presidential election shows how global events are adding massive uncertainty to apparel sourcing. The new president-elect has threatened to tear up the North American Free Trade Agreement (NAFTA) between the US, Mexico and Canada – and we’ve taken a look at what this might mean for the US apparel industry.
Trump has also confirmed he will take steps to end the landmark Trans-Pacific Partnership (TPP) trade deal on his first day in office.
A more insular climate in the US would likely drive growth in "onshoring" of manufacturing and jobs – a move that would hit Mexico and Central America the hardest due to their reliance on exports.
But while Mexico's apparel makers are concerned at the possibility of a 35% tariff on exports to the US, some also suggest the move could have unexpected benefits too.
The US presidential election result is likely to have little impact on holiday spending plans – but changes to trade, labour and tax regulation could all have far-reaching implications for the retail industry, analysts believe.
Another example of the key role played by trade regulations in apparel sourcing is the return of Madagascar to the export stage, with the island nation off the southeast coast of Africa bouncing back after the US reinstated its AGOA (African Growth and Opportunity Act) beneficiary status in 2014.
Meanwhile, the Alliance for Bangladesh Worker Safety says it stands by its progress in remediating the country's garment industry, following claims by labour rights groups that its efforts have been overstated and it is concealing a lack of action.
But there are calls for fashion brands to re-think their throwaway business model and produce clothing that's durable, repairable and fit for re-use.
And in other news, Adidas has produced the first performance shoe made from fibres based on spidersilk protein; South Korea's Sae-A Trading has supported another medical mission in Haiti; and Uniqlo owner Fast Retailing has set up its first Denim Innovation Centre in Los Angeles.
Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...
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Chad, Jordan, Oman and Rwanda have become the latest countries to ratify the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA), meaning it has now reached the pre-determined number o...
Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...
The American Apparel & Footwear Association (AAFA) has entered into a partnership agreement with the East Africa Trade and Investment Hub to ensure best-in-class manufacturing of goods destined for th...
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
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