Latest news with #AAFA
Fibre2Fashion
2 hours ago
- Business
- Fibre2Fashion
USTR urged to include domestic platforms in Notorious Markets List
The American Apparel & Footwear Association (AAFA) recently urged the office of the US trade representative (USTR) to strengthen the annual Notorious Markets List (NML) process—the annual review that identifies platforms that engage in, facilitate, turn a blind eye to or benefit from substantial piracy or counterfeiting—to include any such platform, regardless of where it is headquartered. In a letter to USTR, AAFA president and chief executive officer Stephen Lamar wrote that the latter looks forward to working with the former to update the NML process to include domestic platforms to holistically level the playing field for all businesses, protect legitimate commerce, valuable intellectual property (IP) and to continue the fight against dangerous counterfeits. Over the years, the NML has grown silent on the problems associated with counterfeits that are widely available on US-headquartered third-party marketplaces. Despite efforts by several stakeholders, including AAFA, to nominate US-headquartered platforms, the NML since 2020 has not included any such nominations, the letter noted. AAFA has urged the USTR to strengthen the annual NML processâ€'the annual review that identifies platforms that engage in, facilitate, turn a blind eye to or benefit from piracy or counterfeitingâ€'to include any such platform, irrespective of its headquarters. The NML has grown silent on the problems related to counterfeits available on US-headquartered third-party marketplaces, it noted. This is unacceptable for several reasons, the letter stressed. First, some of the US-headquartered platforms that are invited to escape scrutiny are among the most trusted and sought-after third-party e-commerce marketplace in the United States. 'Under normal circumstances, they will be magnets for counterfeiters—as many consumers can tell you they are. That attraction grows exponentially when the NML ignores those platforms. The mere notion that attention is shifted away from US-headquartered platforms is cheered by counterfeiters as implicit license to increase their business there,' the letter said. Moreover, this lack of attention relaxes the pressure on those platforms to become better at stopping and removing counterfeits, it noted. Second, a popular narrative has advanced in the past few years that the NML is exclusively reserved for foreign activity. 'This is a senseless notion as counterfeiters themselves know no restrictions. Moreover, as the first Trump Administration repeatedly showed, US-headquartered platforms themselves have foreign domains, and connect foreign counterfeiters directly to US consumers. This helps establish the second type of foreign connection that currently exists,' AAFA said. 'Even if we accept the notion that the NML is process aimed at foreign activity—a quaint concept that is now absurd—these US-headquartered entities should already be eligible for nomination and submission. If we keep trying to enforce this distinction with no difference, we signal to the world that we are willing to overlook a severe IP problem we are also creating and experiencing,' the letter added. Fibre2Fashion News Desk (DS)
Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
AAFA urges long-term AGOA renewal to boost US-Africa trade
Beth Hughes, vice president of trade and customs policy at the American Apparel and Footwear Association (AAFA), has delivered testimony before the Office of the United States Trade Representative (USTR), highlighting the importance of renewing the African Growth and Opportunity Act (AGOA) for calendar year 2026. Speaking at the annual review hearing (Docket Number USTR-2025-0012), Hughes stated that AGOA plays a pivotal role in driving US private-sector investment and employment across Africa and the United States. She shared testimonials from AAFA member companies, underscoring the impact of AGOA on business expansion and job creation. Hughes said that one member company recently inaugurated a new garment factory in Togo, employing over 250 local workers trained over the past eight months. The company plans to expand the workforce to 500, with finished goods shipped to a US-based warehouse that employs more than 100 Americans. Beth Hughes of AAFA has urged the USTR to renew AGOA for 2026, citing its critical role in boosting US investment and job creation in Africa and the US. She shared member success stories in Togo, Madagascar, Ghana, and Tanzania, and proposed enhancements like triennial reviews and improved customs systems. Hughes called AGOA a 'success story' and pushed for long-term renewal. She further noted that another US apparel company is preparing to construct a facility in Madagascar to relocate nearly 50 per cent of its production from China, Vietnam, and Indonesia. However, Hughes warned that this investment is entirely dependent on AGOA's renewal, as losing duty-free access would render the project unviable. In Ghana, a US company taking advantage of AGOA has become the country's largest private employer, with over 6,000 workers and plans to double that number by year-end. Much of the company's production has shifted from Asia to Ghana due to the cost competitiveness enabled by AGOA. Hughes also mentioned a long-standing AAFA member, founded in 1987, that has fully transitioned production from China to Madagascar and Tanzania since 2007. The company now employs over 10,000 workers—mostly women—and supplies 50 million garments annually to over 60,000 US small businesses, supporting around 3 million American jobs. She emphasised that AGOA's third-country fabric rule is vital, as it allows apparel manufacturers in lesser developed AGOA countries to source inputs from outside the continent while textile infrastructure in Africa is still being developed. At present, African suppliers provide only about 10 per cent of the cotton yarn and fabric used by local apparel manufacturers. To enhance AGOA's effectiveness and utilisation, Hughes said AAFA supports several targeted improvements. These include converting the annual eligibility review to a triennial cycle, allowing cumulation from African Union countries that have ratified the African Continental Free Trade Area (AfCFTA), and replacing outdated textile visa requirements with modern customs cooperation. She also recommended adjusting apparel quotas and revising the graduation criteria for AGOA beneficiaries. Calling AGOA a 'success story,' Hughes urged Congress and the Administration to renew the programme before the September 30 deadline and for the longest possible duration to provide certainty and encourage long-term investment. 'The time to act is now,' she said. 'AGOA has helped build a strong foundation for economic partnership, industrial growth, and mutual prosperity between the US and Africa. Let's not allow that progress to stall.' Fibre2Fashion News Desk (SG)
Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
California retailers, AAFA & NRF to launch US' first textile PRO
The California Retailers Association, the American Apparel and Footwear Association (AAFA), and the National Retail Federation (NRF) have signed a Memorandum of Understanding (MoU) to jointly establish an independent Producer Responsibility Organisation (PRO). This new body will lead efforts to divert apparel and textiles from landfills by collecting, repairing, reusing, and recycling post-consumer materials. The initiative aligns with California's pioneering Extended Producer Responsibility (EPR) law for textiles—the first of its kind in the US. California Retailers Association, AAFA and NRF have signed an MoU to establish a producer-led PRO under California's SB 707, the US' first EPR law for textiles. The PRO will manage end-of-life textile responsibility through collection, repair, reuse, and recycling. It aims to unite stakeholders across the value chain, meet legal requirements, and begin operations in early 2026 following state approval. Signed into law in 2024, California's SB 707 requires producers and importers of textiles to take responsibility for the end-of-life management by joining and funding PRO. It will develop and implement a plan to meet the requirements of the law, including the collection, transportation, repair, recycling and the safe and proper management of covered products, they said in a joint press statement. The California Department of Resources Recycling and Recovery must approve a PRO by March 1, 2026, following a January 1, 2026, PRO application deadline. The initiative aims to establish an independent, producer-led PRO to represent and ensure compliance of all producers of apparel and textile articles covered under SB 707. It will foster collaboration across the textile value chain by actively engaging manufacturers, brands, retailers, collectors, sorters, recyclers, repair businesses, and other key stakeholders to drive innovation and maximise the programme's impact. The PRO will also be responsible for developing and implementing an effective stewardship programme that fulfils all legal requirements while strengthening infrastructure for the collection, repair, reuse, and recycling of textiles. 'California's groundbreaking SB 707 positions our state as a national leader in responsible textile management. The California Retailers Association is proud to set the standard for innovation and collaboration in environmental sustainability. We are dedicated to guiding the implementation of this transformative law and to establishing a PRO that unites and empowers the wide array of producers selling textiles in California. Our commitment is to deliver real impact for our communities, our environment, and the future of retail in California,' said Rachel Michelin, president, California Retailers Association . 'This partnership signals our industry's commitment to collaborate in support of a circular transition. By bringing together diverse stakeholders from across our industry supply chain, we are launching an inclusive organisation that is right for the California market and regulatory environment, establishing California as the standard for similar approaches nationwide,' said Steve Lamar, president and CEO, AAFA . 'Our associations have a shared commitment to ensuring the success of SB 707. Collectively, our members bring significant experience in PRO-building, EPR compliance and implementation to this effort. We look forward to working together to establish an organisation that supports the entire producer community to meet the immediate needs in California and potential future needs if other states adopt similar approaches,' said Stephanie Martz, chief administrative officer and legal counsel, NRF . The associations have begun the process of forming an independent 501(c)(3) PRO to meet all requirements under SB 707 and prepare for the application process. The PRO is expected to be operational in early 2026, with the initial focus on registering producers by July 1, 2026. Additionally, it will conduct an initial statewide needs assessment to determine the necessary steps and investment needed to fulfil the law's requirements and inform the program budget and plan. The PRO will prioritise early outreach to producers and will engage with interested parties to lay the groundwork for implementation, added the statement. Fibre2Fashion News Desk (SG)
Yahoo
03-07-2025
- Business
- Yahoo
Trump Announces ‘Great Deal of Cooperation' With Vietnam, Lowering Tariff Rate
President Donald Trump took to Truth Social Wednesday to announce a trade deal with Vietnam, which includes a 20-percent tariff on the country's exports to the U.S. market. The president wrote that a conversation with the country's general secretary, To Lam, led to the resolution, which includes a zeroing-out of duties for American-made goods imported into Vietnam. 'It will be a Great Deal of Cooperation between our two Countries,' Trump wrote, noting that the U.S. will have 'TOTAL ACCESS to their Markets for Trade.' More from Sourcing Journal Tariff Fears Prompted Some Shoe Firms To Get Out of China Fast: But Did They Move Too Quickly? US Tariff Whiplash Hits Importers as Maersk Warns of Overpayments NCTO Urges House Leaders to Preserve Provision Ending De Minimis in Updated Megabill Notably, the deal also includes a 40 percent tariff on transshipments, meaning that goods originating in another country that are routed through Vietnam before being transported to the U.S. will face a higher duty rate. Vietnam, which shares both a border and an integrated supply chain with China, imports many materials, components and inputs used for the creation of footwear and apparel. The country has also been fingered as a vehicle for the transshipment of finished goods from China as a means of circumventing trade barriers. American Apparel and Footwear Association (AAFA) president and CEO Steve Lamar was optimistic about the terms of the deal, which will replace the 46-percent 'reciprocal' tariff on Vietnam announced by Trump on April 2. Following a 90-day deferral period ending on July 9, those steep 'Liberation Day' duties will go into effect for most U.S. trading partners—unless they can reach a consensus with U.S. trade officials swiftly. 'AAFA is pleased that further progress is being made on reciprocal trade deals, and we hope to see additional news in the coming days. With respect to Vietnam—the second largest supplier for footwear, apparel, and accessories sold into the U.S. market—we look forward to learning the details related to today's news so that we, together with our members, can evaluate how well it will provide relief and certainty,' Lamar said. 'Is vital that the final terms of this deal, and any future deals, enable U.S. brands and retailers, and our 3.6 million American workers, to continue to be able to supply American consumers with affordable, responsibly made, ethically sourced, and authentic fashion,' he added. Footwear firms have waited with bated breath for a trade truce with Vietnam, given that more than half of all athletic shoe imports originate in the country. Footwear Distributors and Retailers of America (FDRA) president and CEO Matt Priest said the nation is 'essential to the U.S. footwear supply chain.' Last year, the U.S. brought in a whopping 274 million pairs of shoes from Vietnam, a $10.6-billion value. Priest said the country is on track to become America's largest footwear supplier in 2025, usurping China's long-held title. 'Disrupting that pipeline with additional tariffs would hit American consumers and our industry hard,' he said, as many shoes (especially performance styles) already carry a 20-percent tariff burden. 'Piling new tariffs on top of that isn't just unnecessary—it's bad economics. The administration should acknowledge the steep footwear duties already in place and avoid adding more strain to American families and businesses,' Priest added. Meanwhile, the president's goodwill toward another nation appears to have dissipated. Trump floated the idea of raising tariffs on Japan to between 30 percent and 35 percent amid difficult negotiations that have dragged on for weeks. The country's reciprocal tariff rate was set at 14 percent on April 2, which would stack on top of the 10-percent universal baseline duties. Despite saying Tokyo and Washington have enjoyed a 'great relationship,' he also told reporters aboard Air Force One on Tuesday that Japan has 'ripped us off for 30, 40 years,' with the chief complaint being that the country does not purchase enough American cars or rice. Referring to Japan as 'very tough' and 'very spoiled,' the Commander in Chief expressed doubt that the partners could come to a deal. As he's intimated before, Trump said he would send the country a letter setting its tariff rate at up to 35 percent or 'whatever the number is that we determine.' Those comments came on the heels of questions from reporters about a possible extension of the July 9 deadline. Trump reiterated that he would not extend the pause on duties. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fibre2Fashion
03-07-2025
- Business
- Fibre2Fashion
US AAFA writes to Massachusetts committee opposing The Fashion Act
The American Apparel & Footwear Association (AAFA) recently wrote to the Massachusetts joint committee on environment and natural resources sharing its concerns over The Fashion Act (H1032), aimed at environmental accountability in the fashion industry. While the legislation is well intended, it creates a costly and burdensome regulatory mechanism that cannot effectuate the results it seeks, AAFA noted. US trade body AAFA wrote to the Massachusetts joint committee on environment and natural resources sharing its concerns over The Fashion Act, aimed at environmental accountability in the fashion sector. The act creates a costly and burdensome regulatory mechanism that cannot effectuate the results it seeks, AAFA noted. It does not allow for full alignment with the Science-Based Targets Initiative. The act establishes requirements that do not align with standards and initiatives referenced in the act, as well as legislative and regulatory requirements to which the fashion industry is already subject, AAFA president and chief executive officer Steve Lamar wrote in the letter. This lack of harmonisation creates an unnecessarily complicated compliance framework for companies without providing a material sustainability benefit. In some instances, such conflicts can undermine the goals of the initiatives to which the legislation points, he noted. Harmonisation with European Union (EU) regulations will be critical and it will also be important to learn from what was unworkable for the EU, the letter said. The European Union's Corporate Sustainability Reporting Directive (which applies to many US companies, both in and outside the fashion sector) and the California Climate Corporate Data Accountability Act (SB 253) both currently require covered companies to report on their greenhouse gas emissions. The Fashion Act does not align with the established timelines or assurance levels in either piece of legislation. It does not align with other pending climate legislation in New York, New Jersey, Colorado or Illinois as well, AAFA remarked. While The Fashion Act requires fashion sellers to set targets, it does not actually allow for full alignment with the Science-Based Targets Initiative (SBTi) . The act prohibits some sellers from using intensity-based targets, even though SBTi validates such targets, the AAFA letter said. Holding companies to absolute targets means mergers or acquisitions could put companies out of compliance, while divestment of business would give the appearance of emissions reduction without actual achievement, the letter noted. The act provides overly prescriptive data collection requirements that are not required by SBTi, and are not actually implementable, AAFA observed. Despite the industry adhering to dozens of chemical regulations across the globe, The Fashion Act piles additional, impractical requirements that are not aligned with existing programmes and would actually discourage the addition and detection of new chemicals in wastewater, Lamar wrote. 'Sales of fashion products by third-party sellers on online marketplaces would be exempt from the requirements under the bill as it is written. If the intention of the legislation is to make marketplaces clean up their production, this bill misses the mark. With third-party sales expected to comprise almost two thirds of all e-commerce sales by 2027, this represents a significant omission,' the AAFA letter mentioned. Finally, the legislation provides no incentives, no diplomatic or technical support and no guidance for the industry to achieve its objectives, it added. Fibre2Fashion News Desk (DS)
