USFIA Calls New NAFTA 'a Mixed Bag'

NEW YORK -- The assistant U.S. trade representative for textiles acknowledged there are changes to NAFTA "you may not like," before he pitched changes to the pact that could be beneficial for the garment industry. Bill Jackson, who noted that textiles is the only sector to have a dedicated office at USTR, was speaking Nov. 7 at the Apparel Importers Trade and Transportation Conference. United States Fashion Industry Association President Julia Hughes, who was interviewing Jackson, agreed that the rewrite is "a mixed bag" for her industry.

Jackson noted that the new NAFTA requires that sewing thread, pocketing and narrow elastic must originate in the region -- these were all changes to the rules of origin the industry opposed (see 1805300091). But he said that negotiators did eliminate the visible lining rule; rayon is no longer required to originate in the region; and the agreement allows a de minimis safe harbor of non-originating content of up to 10 percent, rather than 7 percent.

He pitched higher tariff preference levels from Canada for apparel and for fabrics and made-up textile articles -- those levels will increase from 2 million square-meter equivalent to 20 million SME. He said this could be particularly good for American-made window coverings. Jackson encouraged apparel and textile trade groups to weigh in on what they'd like to see in negotiations with the European Union, Japan and the United Kingdom. "Those public comments you make, wherever you can, we take them into account."

Jackson said he has no inside line on negotiations with China around Section 301 tariffs, though he said he's pleased the garment industry has largely been spared from the tariff lists thus far. He said that we all agree it would be best for the conflict to be resolved without more trade disruption.