The leading apparel and textile associations in the United State and Europe urged their respective trade commissioners March 10 to negotiate a Transatlantic Trade and Investment Partnership (T-TIP) that will end all apparel and textile duties the day it goes into effect.
In a March 10 letter, The American Apparel and Footwear Association and the European Apparel and Textile Confederation (EURATEX) urged U.S. Trade Ambassador Michael Froman and European Commission Commissioner for Trade Karel De Gucht support immediate and reciprocal duty-free treatment for all apparel and textiles in the proposed Transatlantic Trade and Investment Partnership (T-TIP) Free Trade Agreement.
"As an early harvest and as a demonstration of the commitment of the two parties to making an agreement that enables, and encourages, European and U.S. apparel industry to work and grow together, we urge the two sides to announce at the end of this negotiating round your agreement to eliminate ALL apparel and textile duties, with no exclusion or exception, on Day 1 of T-TIP agreement," the letter reads. The letter argues that tariffs prevent the U.S. and European apparel and footwear industries from working together, and that removing tariffs will increase trade and growth for both the U.S. and European industries and create thousands of jobs in both regions. Additionally, the letter addresses the need to harmonize and simplify the myriad rules and regulations that govern apparel trade in Europe and the United States as highlighted in a previous joint AAFA/EURATEX letter. The Fourth round of T-TIP negotiations are occurring this week in Brussels. In their June 2013 statement announcing T-TIP, President Obama President Obama, European Council President Van Rompuy and European Commission President Barroso described the agreement as an ambitious and comprehensive trade agreement that significantly expands trade and investment between the United States and the EU, increases economic growth, jobs, and international competitiveness, and addresses global issues of common concern. At that time, the Obama Administration said it would "seek to obtain fully reciprocal access to the EU market for U.S. textile and apparel products, supported by effective and efficient customs cooperation and other rules to facilitate U.S.-EU trade in textiles and apparel."
"Eliminating the remaining duties on our exports will create new opportunities for integration into European supply chains and to sell high-quality "made-in-USA" garments to European consumers," according to a brief on the U.S. Trade Commissioner's website. "Enhanced U.S.-EU customs cooperation will also help ensure that non-qualifying textiles and apparel from third countries are not being imported into the United States under T-TIP."
EURATEX is the political voice of 180,000 companies prominently SMEs active in the textile and clothing industry with a turnover of more than €168 billion employing more than 1,730,000 workers. The € 4.5 billion U.S. market represents the 2nd largest market for European textile and clothing companies in 2012. Counting just apparel, the United States represents the 3rd largest destination for European clothing exports.
The American Apparel & Footwear Association (AAFA) is the primary public policy and political voice of the apparel and footwear industry. It's members own 1,000 brands that generate $350 billion in annual retail sales and account for four million U.S. jobs. The EU market, historically one of the largest markets for textiles and apparel, represents more than $2.5 billion in U.S. exports annually (including $730 million of U.S. clothing exports).
