THE American Apparel & Footwear Association (AAFA) has presented a plan to help the National Export Initiative to double US exports by 2015, but also urged greater realism about the world trade and the role of protectionism on the part of the US government.
"Domestic manufacturers of apparel and footwear primarily operate under the Berry Amendment (USC, Title 10, Section 2533a), which requires 100 per cent sourcing of military uniforms, footwear and other textile-based equipment for the Department of Defense," the AAFA said.
"Domestic companies that manufacture these items are often small to medium-sized businesses (SMEs) which have little to no commercial business due to the speciality nature of the military items they produce," the AAFA said.
AAFA surveyed its domestic manufacturers and found that only a small percentage export overseas. Of the companies that do, fewer than five per cent of their sales come from exports.
The types of products exported have included soling materials for footwear, waterproof fabric for footwear, broad nylon fabric, mod-acrylic fabric, coveralls, fire resistant treated cotton knit fabric, fire resistant treated viscose knit fabric and Nomex knitted fabric - inputs that go in to finished products made overseas.
"Regrettably, despite the fact that these apparel and footwear manufacturers are producing some of the most technologically advanced apparel and footwear in the world, the predominant export in the apparel and footwear industry tends to come from the large suppliers, who ship fabrics overseas for the commercial market, not the end-item manufacturers," the association said.
In general, the AAFA seeks a liberalised open world market and urges that the US press for global adherence to a rules-based trading system, but also that it obeys the same rules everyone else does.
The AAFA urged that America facilitate the production and sale of US products that are made outside the United States. "US companies make US-branded products everywhere. They also sell them everywhere, with those products sometimes never coming home before a customer in another country purchases them. However, US workers still design, market and sell those products. Further, those earnings still come home," said the AAFA.
"Opening new markets to the free flow of goods and improving current trade flows will allow US companies and their goods to become even more competitive in the global market," said AAFA president and CEO Kevin Burke. "To achieve this goal, the Obama administration and Congress must work in concert with stakeholders and the public to leverage and maximise every opportunity for growth."
The AAFA urged that small and medium-sized enterprises have access to the credit, that congress pass already negotiated trade promotion agreements with Colombia, Panama, and South Korea to give unfettered access to more than 100 million new consumers.
The association also wants current trade agreements up to date with regard to technological developments, intellectual property protections, and new market opening opportunities as well as move towards achieving the conclusion to the Doha Round of trade negotiations at the World Trade Organisation.
(Source:www.schednet.com)