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A bipartisan group of legislators have come together in support of the preservation of the rules of origin that govern textile and apparel trade.
Thirty-eight congressional lawmakers co-signed a letter to Commerce Secretary Gina Raimondo last week, urging her to maintain the yarn forward rule of origin that ensures that each step of garment production, from yarn spinning onward, must take place in a free-trade country.
Specifically, they are pushing back against lobbying from importers doing business under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), who assert that their growth has been inhibited by the unavailability of certain fibers and materials in their countries of business. Officials on both sides of the aisle believe that amending the rules of origin would open a “backdoor entrance” to non-free-trade countries, allowing them to access the trade agreement’s benefits while asserting undue influence over trade taking place between the U.S. and its partners.
“The rules of origin governing textile and apparel production and trade under CAFTA-DR have clear benefits and have strengthened our regional supply chains by fostering a stable business environment where American and regional manufacturers can thrive,” the letter said. “We strongly urge you to continue following the longstanding CAFTA-DR short supply list process, which requires requestors to submit public petitions for review, and reject requests to circumvent it.”
The current FTA system encourages importers to apply for limited exceptions to the yarn-forward rule. The process allows for the sourcing of certain materials and inputs from third parties, while still maintaining FTA benefits for finished goods. According to...