The joint proposal was submitted to the Office of the United States Trade Representative (USTR) by the National Council of Textile Organizations (NCTO), the American Apparel & Footwear Association (AAFA), the United States Fashion Industry Association (USFIA), and the US Industrial and Narrow Fabrics Institute (USINFI).
This collaboration marks the first instance in which these groups, traditionally known for holding divergent trade policy views, have united in support of a single trade initiative.
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In the submission, the organisations emphasised objectives such as encouraging domestic manufacturing, strengthening Western Hemisphere textile and apparel supply chains, and assisting brands and retailers to diversify sourcing strategies at what they described as a critical juncture.
The incentive programme, according to the joint statement, would allow brands and retailers to earn tariff credits when purchasing US textiles and approved apparel goods from US free trade agreement partners in the Western Hemisphere.
These credits could then be used to offset potential Section 301 tariffs imposed on imports from eligible countries.
The industry groups argue that the adoption of their programme would deliver “the revitalisation and growth of US textile manufacturing, exports, and investment, resulting in over 56,000 new jobs” domestically.
Furthermore, increased exports are projected to “drive billions of dollars of new domestic investment” and provide benefits throughout the wider supply chain, including the cotton farming sector.
Their proposal was formally presented as a response to a mechanism advanced by USTR as part of the ongoing Section 301 investigations into forced labour practices in global supply chains.
The submission stated that the new approach had been jointly devised as a way to address priorities shared by manufacturers and buyers across the US market.
“Our joint efforts have resulted in the development of a novel trade incentive programme that would achieve various important goals,” the organisations noted, referencing new job creation and sector growth as key expected outcomes.
They added: “We believe with the right incentives we can grow jobs substantially in the United States, reopen shuttered factories, and make the critical investments needed to maintain and to grow America’s textile industry by also helping brands and retailers find new opportunities. As such, we respectfully request the United States Trade Representative to consider including our proposed incentive program as a component of any remedy that results from the Section 301 investigations currently underway.”
