Tacit deal by US on Vietnamese clothes irks retailers
05 Oct '06
2 min read
A tacit deal by the Bush administration with textile-state republicans to garner support for a trade treaty with Vietnam has left US retailers high and dry and they are now contemplating putting halt to buying clothes from Vietnam.
Erik Autor, Vice President and international trade counsel for the National Retail Federation said that they felt as if they had been traded for the deal.
Sen. Elizabeth Dole of North Carolina and Sen. Lindsey Graham of South Carolina were promised by Bush administration that textile and clothing imports from Vietnam would be watched closely once it joins World Trade organization forcing US to abolish import quotas.
U.S. Trade Representative Susan Schwab and Commerce Secretary Carlos Gutierrez have assured that proper investigation would be launched if proof of unfair pricing hurting the US textile producers is traced. The investigation may lead to imposition of anti-dumping duties.
Global government and public affairs director for Nike, Brad Figel said that administration had failed to see its implications in the coming days. Nike plans to increase its business in Vietnam but now has to trade with caution as the clothes it buys may face the anti-dumping duty.
Companies are wary of placing order in Vietnam as it seems to have become target of US textile industry even as administration tried to assure them that legitimate trade will not suffer.Importers are worried that WTO rules may actually work in favor of local yarn and fabric producers as administration could file anti-dumping cases on their behalf.
marketing@alchempro.com
