US and Canadian apparel trade bodies and brands are pushing for swift ratification of the United States Mexico Canada (USMCA) trade pact, adding the agreement — which replaces the 25-year old NAFTA free trade pact — allows apparel and footwear companies access to the “diverse supply chains” which are required to meet the expectations of customers in today’s retail environment.
The calls come on the back of Mexico’s announcement yesterday (4 March) that it would not agree to any deal unless US President Donald Trump lifted tariffs on steel and aluminium the US imposed last year.
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In June, Trump imposed tariffs of 25% on steel and 10% on aluminium from Mexico and Canada, citing a controversial national-security clause in US trade law known as Section 232.
Bob Kirke, executive director for the Canadian Apparel Federation (CAF), told just-style, the group “strongly urges the US to withdraw the “illegal” tarrifs.
“These tariffs jeopardise the ability of Canada or Mexico to sign onto the agreement,” he said. “I cannot understand how either the Mexican or Canadian governments could ratify without these tariffs being withdrawn.”
However, CAF does support USMCA ratification.
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By GlobalData“We believe the USMCA allows us to maintain and in fact grow exports to the US and supports greater North American integration within the apparel industry,” Kirke added.
Meanwhile, the American Apparel and Footwear Association (AAFA) maintains the agreement must remain trilateral, lending its full support for a quick passage of the trade deal which was signed off on the sidelines of the G20 summit on 30 November.
“Our North American apparel and footwear value chain is an integral component of the future of our industry. USMCA provides the stability and predictability that we need for our companies to invest in the region as we grow our footprint,” said Rick Helfenbein, president and CEO of the American Apparel & Footwear Association. “Today, more than 200,000 American jobs in our industry are supported by NAFTA. We are calling on Congress to approve the USMCA this year and for the Administration to quickly and seamlessly implement it.”
Tom Glaser, vice president of apparel giant VF Corp and AAFA chairman, added: “To meet the needs of today’s retail environment, apparel and footwear companies need to have a diverse supply chain that can meet consumer expectations. The North American region is a key part of this matrix, and the USMCA will be an important part of its future.
“AAFA has long supported the USMCA negotiations, calling for the resulting agreement to be trilateral with Mexico and Canada, to not harm to the industry’s supply chains, and to be seamlessly implemented.”
Mexico’s apparel trade association CANAIVE and its textile trade association CANAINTEX did not return requests for comment from just-style.
