TRADE IN THE TRUMP ADMINISTRATION AND NAFTA RE- AND NAFTA RE-NEGOTIATIONS Steve Lamar, ... • Ex. China IPR Section 301 • Buy American • Trade Agreements Review • NAFTA •

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  • TRADE IN THE TRUMP ADMINISTRATION ANDNAFTA RE-NEGOTIATIONS

    Steve Lamar, Executive Vice President, AAFA

  • About AAFA

    PresenterPresentation NotesThe American Apparel & Footwear Association (AAFA) is the national trade association representing apparel, footwear and other sewn products companies, and their suppliers, which compete in the global market. Representing more than 1,000 world famous name brands, retailers, and manufacturers AAFA is the trusted public policy and political voice of the apparel and footwear industry, its management and shareholders, its four million U.S. workers, and its contribution of $384 billion in annual U.S. retail sales.

    AAFA provides exclusive expertise in supply chain management, trade policy, and brand protection, to help our members navigate the complex regulatory environment and lower costs. Members gain unparalleled access to information and exclusive insights on regulation and policy, and premier opportunities for networking and collaboration.

  • Clothes, Shoes, and Travel

    Goods47%Other Products

    53%

    Allocation of U.S. Import Duties Collected by U.S. Government - 2016

    Source: USITCTotal Duties Collected: $32.4 billion

    Clothes, Shoes, and Travel

    Goods5%

    Other Products95%

    Allocation of U.S. Imports by Import Value

    Source: USITCTotal Imports: $2.16 trillion

    Apparel, Footwear, and Travel Goods - Tariffs

    Clothes, Shoes, and Travel Goods Account for 5% of All U.S. Imports Yet Generate 47% of All

    U.S. Duties Collected

  • Trade Policy (1) Trade Policy Review/Overhaul/Studies

    Trade Remedies Ex. Steel/Aluminum Section 232

    Enforcement Ex. China IPR Section 301

    Buy American

    Trade Agreements Review NAFTA KORUS

    Focus on Lowering Trade Deficits, Increasing Enforcement, & Growing U.S. Exports

  • Trade Policy (2)

    Generalized System of Preferences (GSP)

    GSP Footwear

    Miscellaneous Tariff Bill (MTB)

    Caribbean Basin Trade Partnership Act (CBTPA)

    African Growth and Opportunity Act (AGOA)

  • NAFTA: Terminate or Negotiate

  • NAFTA - TPA Timeline

    You AreHere

  • Negotiation Next Steps? First Round Washington, DC (August 14-18) Second Round Mexico City (September 1-5) Third Round Ottawa (September 23-27) Fourth Round Washington, DC (October 18-24) Fifth Round Mexico City (November 17-21) Sixth Round Washington, DC (December?)

  • What Does NAFTA 2.0 Look Like?

    Modernization TrumpTraditional

  • ROO TPL Short Supply Chapter Notes Other

    Customs

    Safeguards

    Issues at Stake

  • What Should Happen? Do No Harm

    Keep It Trilateral

    Make It Seamless

    Make NAFTA Work Better

  • How American Are Your Mexican Jeans?

    Labels/PackagingMade In:CA, NC, NJ, VA, PA, OH, FL

    ZippersMade In:GA, NC, CA

    YarnSpun In:NC, SC, GA

    Sewing ThreadSpun In: NC, GA

    CottonGrown In: 17 states, stretching from Virginia to California

    DenimWoven In:NC, TX, GA

    PocketingMade In:NC, SC, MS, GA

    Buttons, Rivets, SnapsMade In:KY, GA

  • U.S. Apparel Import Snapshot

    0

    0.5

    1

    1.5

    2

    2.5

    2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

    Index of Apparel Imports (2000 to 2017)2000 = 1

    ROW

    NAFTA

    CAFTA-DR

    Source: OTEXA

  • U.S. Textile Export Snapshot

    4.00

    5.00

    6.00

    7.00

    8.00

    9.00

    10.00

    2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

    U.S. Textile Exports to NAFTA/CAFTA(billions of U.S. dollars)

    Source: OTEXA

  • Why Seamless Matters

    0.00%

    2.00%

    4.00%

    6.00%

    8.00%

    10.00%

    12.00%

    JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

    Effe

    ctiv

    e Ra

    te (D

    utie

    s/Cu

    stom

    s Va

    lue)

    Effective Duty Rate of U.S. Apparel Imports From Colombia2012 (by month)

    Colombia FTA Turns OnATPDEA Turns Off

    Source: USITC

  • Four Scenarios Withdrawal and Termination

    Withdrawal

    Changes

    Status Quo

  • Questions?

    Steve LamarExecutive Vice PresidentAAFAslamar@aafaglobal.org571.332.6449

    mailto:slamar@aafaglobal.org

    Trade in the Trump Administration andNAFTA Re-NegotiationsAbout AAFASlide Number 3Trade Policy (1)Trade Policy (2)NAFTA: Terminate or NegotiateSlide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Why Seamless MattersSlide Number 16Slide Number 17