Haiti legislation such as that contained in H.R. 6142 could eliminate most or all U.S. exports textile and apparel exports to Haiti as well as harm U.S. exports to Mexico and the CAFTA countries. U.S. textile and apparel exports to Haiti totaled $220 million in 2005.
Haiti is the lowest-wage apparel producer in the Western Hemisphere. As a result, its apparel exports to the United States have grown by 29 percent during the last year to 240 million square meters equivalent (SME).
Beginning in the second applicable one-year period, this second TPL also includes an unenforceable, value-added rule that starts 50 percent that allows for cumulation from all U.S. free trade agreement (FTA) partners, including those in Asia.
These types of rules of origin are virtually unenforceable because once a garment is sewn or knitted and shipped, it is impossible for an agent at a U.S. port of entry to determine the origin of the components of the garment.
With the new reorganization at Customs and Border protection, it is questionable whether such textile rules even can be effectively enforced in the future.
The TPL structure in the AGOA bill is similar in structure to that of the larger of the two TPLs for Haiti. The TPL for African countries under H.R. 6142 equals 770 million square meter equivalents annually under a new, unenforceable, value-added rule (50 percent).
As with Haiti, these types of rules of origin are virtually unenforceable because once a garment is sewn or knitted and shipped, it is impossible for an agent at a U.S. port of entry to determine the origin of the components of the garment.
Since January 2001, employment in U.S textile and apparel manufacturing has a fallen by 451,900 (a plunge of more than 43 percent), declining from 1,047,200 to 595,300.
Also during the same time frame, U.S. textile production dropped 19.7 percent while U.S. apparel production plummeted 44.6 percent.
American Manufacturing Trade Action Coalition
marketing@alchempro.com
