Industry trade group the American Apparel & Footwear Association (AAFA) has praised US lawmakers for their passing of a job creation bill this week.

The bill, titled the American Jobs Creation Act of 2004, was passed through the US House of Representatives by a 251-178 vote.

It repeals the foreign sales corporation and extra-territorial income program, ruled an illegal export subsidy by the World Trade Organisation.

"AAFA would like to thank every House member who voted for this important measure and the House leadership for allowing a quick vote on this vital piece of legislation," AAFA CEO Kevin Burke said.

In order to be fully adopted, the bill must now go to a conference to resolve the differences between the House and Senate versions of the legislation.

Burke said he hoped the legislation would be finalised before the European Union increased its sanctions on US-manufactured goods in July.