Page 73 - November-December-2018

72

suppliers of textiles and garments with around 7 per with WTO rules. Needless to say, if the US removes expected to benefit suppliers such as the European agency places textiles and garments at a high risk for
cent, 5 per cent and 4.5 per cent share respectively. its tariffs, our measures will also be removed.” Union, southeast Asia, and countries participating in non-compliance, given that import duty rates for
China’s “One Belt, One Road” initiative. China has China-made textiles and garments are now in some
While China is by far the leading supplier of textiles Canada’s Retaliation responded to each stage of the Section 301 tariff cases relatively high. Moreover, a substantial share of distributed widely by the Federal Trade Commission other options, by reducing energy tariffs, providing
and clothing, surprisingly, US tariffs are higher on Canada imposed countermeasures (surtaxes) increases the U.S. has imposed against imports from the US textile and garment imports from Southeast (FTC), many manufacturers and sellers know the incentives like drawback duties, and cheaper
clothing imports from many other Asian countries against C$16.6 billion in imports of steel, aluminium China with duty hikes of its own. However, this Asia can claim preferential tariff treatment under the labelling requirements and would thus be held financing under Long Term Financing Facility (LTFF)
compared to China. Garments from countries like and other products from the United States beginning retaliation has resulted in higher costs for imports US Generalised System of Preferences (GSP). It accountable, according to the FTC. and Export Refinance Facility (ERF). Further, the
Bangladesh, Cambodia, Sri Lanka, Pakistan and July 1. As per the full list of retaliatory tariffs released from the U.S., including key components in the eliminates textile-garment tariffs for many of the government is negotiating Free Trade Agreements
Vietnam attract higher duty in the United States by Canada’s department of finance, targeted supply chains for finished goods produced in China. world’s developing countries, including Southeast Julia Hughes, president of the US Fashion Industry (FTAs) with countries like China to enhance exports.
compared to those from China, according to a consumer products include pillows, cushions and Anticipating that these mutual tariff increases will Asia’s Cambodia, Indonesia, Thailand and the Association (USFIA), confirmed a very high level of Reportedly, under Strategic Trade Policy Framework
recent study by US fact tank Pew Research Centre similar furnishings of cotton; quilts, eiderdowns, remain in place for an extended period, Beijing has Philippines, but excluding China. awareness about the potential of illicit diversion of (STPF), the government is aiming export target of
that analysed data from the US International Trade comforters and similar articles of textile material announced several rounds of duty decreases to China-made products, which she thinks should US$46 billion by 2023. After the recent visit of
Commission (ITC). Mexico, Canada, Japan, containing less than 85 per cent by weight of silk or encourage more sourcing from other countries. “One level to this is the simple relabelling to conceal minimise the risk. Pakistan officials to China, doubling of exports to
Germany and South Korea enjoy much lower US silk waste; other bedding and similar articles. Affected products have included cancer-related real origin,” says Dane Chamorro, a China in one year is being worked upon. Analysts
tariffs than China, the study said. Canada has 1.25 drugs (effective May 1) and automobiles, auto parts, Singapore-based senior partner of Control Risks, an “While we are concerned about the wide-ranging believe, aforementioned measures/steps are likely to
per cent share in US textile and apparel imports, China’s Retaliation and some consumer goods (effective July 1). The international risk consultancy. effects of a trade war, we do not think that there will help Pakistan textile sector to achieve its ambitious
according to OTEXA, whereas Japan, Germany and Subsequent to imposition of tariffs on steel and latest round, which took effect Nov. 1, included be an increase in fraud or illegal shipments,” export target.
South Korea have less than 1 per cent share. aluminium products, US President Donald Trump on lowering the average duty rates for the following Being clear on what is at stake for the US economy, says Hughes.
June 15 announced tariffs of 25 per cent on $50 products as indicated. the CBP in its latest textiles enforcement statistics Pakistan is in negotiation phase of FTA Phase II with
Initially, the United States did not include textile and billion worth imports from China that contain - textiles, construction materials, etc. from 11.5 published in May emphasised that the textile sector “Today, major apparel brands and retailers, especially China, which would be a breakthrough for Pakistan’s
apparel products in the list of imports on which it has industrially significant technologies. This includes percent to 8.4 percent is a key component of the US economy, employing USFIA members, know where their products are textile sector as currently Pakistan is paying tariff of
raised tariffs. But, the latest list of goods on which it goods related to China’s ‘Made in China 2025’ - construction machinery, instruments, and other more than 550,000 US workers. Adding even more made and constantly monitor production, and that’s 3.5% on yarn as compared to 0% on Bangladesh
wants to impose 10 per cent tariffs under Section strategic plan to dominate the emerging mechanical and electrical equipment that have urgency, in fiscal year 2017, textile and apparel not going to change,” she adds. and ASEAN countries (Indonesia, Malaysia, Thailand,
301 on imports from China includes all textile raw high-technology industries that in Tump’s words, substantial domestic demand from 12.2 percent to imports generated US$13.5bn, or 41%, of all duty Philippines, Vietnam among others). Tariffs on
materials, yarn and fabric. Hence, tariffs on finished “boost China’s growth, but hurt the United States”. 8.8 percent collected by CBP, providing the US government with Potential for Pakistan’s Textile Industry? Pakistan’s other textile products ranges from 4 to 9%
textiles and apparel at a future date cannot be The United States began collecting duties on 818 - resource commodities such as paper products and substantial revenue. And in the same reporting Abdul Razzak Dawood, adviser to the prime minister as compared to 0% in ASEAN countries. Rationalization
ruled out. Chinese imports valued at $34 billion on July 6. primary processed products from 6.6 percent to 5.4 period, the CBP’s enforcement efforts led to the on trade, industry and investment, was quoted to of these tariff rates in FTA Phase 2 would unlock
percent seizure of around US$4.75m worth of textile have told a gathering of textile manufacturers in potential of Pakistan’s textile exports to China.
Cotton, one of the main raw material for textiles, is Ignoring Trump’s warning of additional tariffs if China products, following CBP visiting 145 factories in 10 Karachi that the trade war between the world’s two
locally available in plenty and it is up to the engages in retaliatory measures, China’s response While affected goods from the U.S. will also benefit unidentified countries to verify production and largest economies could be beneficial for Pakistan. Faisalabad Chamber of Commerce and Industry
entrepreneurs to make good of it by venturing into was immediate with imposition of ‘equal’ tariffs on from these changes, they also remain subject to the compliance with US trade preference programmes (FCCI) President Syed Zia Alumdar Hussain has
production of ‘Made in USA’ garments for the US products. “We will immediately launch tax retaliatory duties described above. Because of these and testing more than 450 laboratory samples to find Pakistan Business Council CEO Ehsan Malik was already stated that the present tense relations
domestic market. The longer the duration, greater measures of equal scale and equal strength,” the and previous adjustments, China’s overall average nearly 50% of the textile products sampled wrongly quoted by the Dawn news, “The China-US trade war between the US and China have proved to be a
would be the scope for US companies to set up Chinese commerce ministry said in a statement. The import duty rate has been reduced from 9.8 percent classified. has put Pakistan in an advantageous position and we blessing in disguise for Pakistan as its exporters are
textile/apparel manufacturing units, serve the US statement urged other countries to ‘take collective in 2017 to 7.5 percent today. have become more competitive than China in some getting extra orders from the US in the prevailing
market and create new employment opportunities in action’ against what it termed as ‘outdated and There are, as a result, “schemes designed to areas like textiles. It offers an opportunity for Pakistan circumstances.
The withdrawal of the United States from the military and economic clout, would not like to lose its Mexico. In terms of products, consumer products, US textile and apparel trade the process. Meanwhile, US consumers might end backwards behaviour’ of the United States. Impact on Taiwanese companies in China circumvent textile tariff and trade laws including false to boost its exports to the United States as well as
12-nation Trans-Pacific Partnership (TPP) within days status as the leading global economy to China, including clothing, account for more than $400 billion These trades wars can change the landscape of up paying higher price for imported items. Taiwanese companies are thinking of moving invoicing, false marking and labelling, false claims of revive the closed manufacturing capacity (mostly “These orders could be doubled provided the
of President Trump’s inauguration on January 20, which is the world’s largest economy by purchasing of the deficit. Automobiles and parts come next with sourcing and production strategies for global textile For Chinese textile entrepreneurs, it is time for manufacturing operations out of China due to the origin, illegal transhipment, mis-description, in Punjab).” government resolves the country’s liquidity problem
2017, was clear indication of President Trump’s power parity, according to the International Monetary a deficit of over $200 billion. But higher tariffs may and apparel companies and in particular the EU’s retaliation action. First, a prolonged trade war would mean US escalating trade war of the latter with the United undervaluation, false declarations of right to make by ensuring immediate payment of tax rebate, refund
commitment to its campaign promises. President Fund (IMF). Interestingly, China accounts for 66 per not be necessarily imposed on these two product companies from countries directly involved in these As a retaliatory measure to the imposition of tariffs cotton would become costlier, requiring a change in States. The most likely to relocate are firms in the entry, false trade preference claims and outright Furthermore, Beijing’s retaliatory tariffs on
Trump felt that by being a signatory to the TPP, the cent of the total US trade deficit in goods. categories. wars. The US textile and apparel trade is heavily by the Trump administration, Europe has gone raw material sourcing strategy. Second, textile, electronics and bicycle industries, which smuggling,” CBP says in its latest textile enforcement are likely to accelerate the offshoring of cotton claims,” he said.
United States is giving away lot of trade advantages one-sided with Chinese goods constituting around ahead and implemented a 25 per cent additional entrepreneurs would have to accelerate the process export products to the United States, a survey by the statistics, released in May this year (2018). spinning and lower-end textile and apparel
to other 11 countries, while it is not getting benefit to To reduce the trade deficit, President Trump started 36 per cent of all US textile and clothing imports, duty beginning June 22, 2018, on several American of setting up manufacturing units in other countries country’s Industrial Development Bureau (IDB) has manufacturing to South and Southeast Asia, and Though some analysts say that the recent
the same extent in return. In 2017, the total US trade taking steps one by one. He announced reworking of according to the Office of Textiles and Apparel items, including t-shirts, singlets and other vests; like Vietnam and Ethiopia. Once this is done, higher found. The country’s textile industry, which has US-based importers and retailers dealing with Chinese businesses are bracing for possible US depreciation of rupee bodes well for Pakistan others
deficit was $566 billion. President Trump wants to the North Atlantic Free Trade Agreement (NAFTA) (OTEXA), under the US department of commerce. shorts, trousers and breeches of cotton denim; tariffs on Chinese products would not affect exports factories in Southeast Asia as well, is expected to fraudulent imports would face stiff penalties under tariffs on their finished goods if the trade war don’t agree with this. The first group believes that
reduce this deficit as it is detrimental to the US with Canada and Mexico. Then, he imposed tariffs But, when it comes to the raw material — cotton — it synthetic fibres, industrial and occupational; and of goods made by Chinese companies to the United ramp up production in that region, while the the US’s Wool Products Labelling Act, the Fur intensifies, industry executives have said. rupee depreciation is likely to restore the lost
economy — the largest in terms of nominal gross and quotas on imported solar panels and washing is the other way. bedlinen of cotton. States, unless these countries also get embroiled in electronics and bicycle industries could move Product Labelling Act, and the Textile Fibre Products competency of textile companies. The other group
domestic product (GDP). The second argument is machines. In March this year, he announced that he trade wars with the United States by that time. operations back to Taiwan, according to the survey. Identification Act. Violators are subject to monetary To overcome ballooning current account deficit, strongly believes that depreciation of rupee alone just
that prolonged trade deficit reduces competitiveness would impose a 25 per cent tariff on steel imports With $12 billion of textile and apparel exports, EU commissioner for trade Cecilia Malmström However, this would lead to loss of jobs in China. civil penalties, injunctions and other remedies, Government of Pakistan’s has to focus on boosting can’t boost Pakistan exports. The country suffers
of the US economy, leading to decline in expertise and 10 per cent tariff on aluminium, which eventually Vietnam is the second largest supplier accounting termed the US step as “unilateral and unjustified Threat of Fraudulent trade? including consumer redress, in a federal district textiles and clothing exports. To achieve this objective from cost pushed inflation and depreciation of rupee
and competitiveness of the US companies, and came into effect from May 31. President Trump’s for more than 11.5 per cent of all textile and clothing decision”. She said that the rules of international China Lowers Imports Tariffs to Diversify Sourcing The trade war has raised the spectre of fraudulent court action. the government is striving to increase exports among spikes cost of doing business.
thereby loss of jobs and decline in standard of living so-called ‘protectionist’ measures would primarily imports made by the United States in 2017. India, trade which were developed over the years cannot Effective Nov. 1 China lowered its import duties on rerouting of Chinese textile-garment products
of its citizens. The United States, given its political, affect its main trading partners—China, Canada and Bangladesh and Mexico are the next three largest be violated without a reaction from the EU. “Our 1,585 tariff lines as part of a long-term plan to through neighbouring regions, notably Southeast Because copies of the statutes, rules and prior
response is measured, proportionate and fully in line diversify sourcing away from the U.S. The move is Asia. The US Customs and Border Protection (CBP) decisions in the textile, wool and fur areas have been
November/December 2018