AAFA Weekly Brief
July 17, 2018

Newsletter at-a-glance

Digest the latest on tariffs with updates under AAFA News, including member resources to keep up on what is happening and how it could impact your business. Don't miss CNBC's interview with AAFA's EVP and trade expert Steve Lamar (see Trade).
July 17: ... The ambitious pact signed in Tokyo runs counter to President Donald Trump’s moves to hike tariffs on imports from many U.S. trading partners. It covers a third of the global economy and markets of more than 600 million people. (Source: Associated Press)
July 16: ... The latest U.S. litigation could force the WTO to decide whether the United States misused a national security exception under WTO rules to impose the steel and aluminum tariffs. That creates a situation with extremely high stakes. (Source: Politico)
July 11: We've moved beyond the point where they're putting pressure on China, they're putting pressure on American people, says Stephen Lamar, executive vice-president at the American Apparel & Footwear Association. (Source: CNBC)
July 11: ... an Indonesian lobby team is ... due to meet with the United States Trade Representative (USTR) after that body announced in April that it was reviewing the country’s eligibility for the Generalized System of Preferences ... The USTR said at that time that the review was because Indonesia had implemented a wide array of trade and investment barriers that had hurt U.S. commerce. (Source: Reuters)
Supply Chain
July 17: ... While eco-friendly development remains a desideratum, the $28 billion question is how do we go from LEED and PACT success stories to transformational change that will ensure Bangladesh's place in a green supply chain? (Source: The Daily Star - Bangladesh)
July 13: ... "When the refugee situation is protracted, we believe that it is best for the host country to establish legal and safe means for the refugees to access work," [Nate Herman, senior vice president of supply chain at the American Apparel & Footwear Association] said. "When such work is legal, and transparent, then our members can address labor rights issues up front through their CSR compliance programs." (Source: Women's Wear Daily - login required)
July 11: ... Lamm is part of a growing movement to embrace sustainable fashion — keeping apparel in use as long as possible, and then recycling it. ... Traditional brands ... have begun to join in, too, taking steps to boost sustainability. (Source: Baltimore Sun)
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Brand Protection
July 16: A bill in the California legislature would regulate bots by making them disclose their automated nature. But how? (Source: New York Times)
July 12: Counterfeits are produced in just about all global economies, but it takes high levels of corruption for countries to become major exporters of fake goods. That’s the main conclusion of an EU Intellectual Property Office (EUIPO) report which suggests corruption in governance organizations – as well as poor IP protection – are a big influencer, along with other factors such as the presence of free trade zones (FTZs), low labour costs and poor labour market regulations. (Source: Securing Industry)
July 11: ... Washington-based Comphy, which does not stock on Amazon’s site, alleges that when consumers search for the word "comphy" on Amazon.com, the Amazon "algorithm populates a page of search results for inferior and unauthorized third-party sheets," including for similarly-named competitor "Comfy," ...  Amazon does not, according to the complaint, "indicate that Comphy-brand sheets are unavailable on amazon.com" (Source: The Fashion Law)
Naylor Association Solutions
Naylor Association Solutions

$200 billion in additional tariffs: On the evening of Tuesday, July 10, the Office of the U.S. Trade Representative (USTR) released a list identifying $200 billion worth of U.S. imports from China that the Trump administration proposes hitting with a 10% tariff. The list is several hundred pages long and includes more than 6,000 lines of product and product categories. While apparel, textiles, and footwear were spared, there are numerous products listed that will have a direct impact on our industry. The list includes all travel goods, all hats, all textiles, specialized apparel (such as articles made from plastic, rubber, paper, and leather), and various machinery. Many other consumers goods are also included. AAFA will continue to relentlessly advocate for removal of these items from the list and to keep apparel, footwear, and home textiles off this list or future lists. 

For details on exactly what is listed, how to navigate the list, and potential effective dates, talk to AAFA’s Steve Lamar about AAFA’s Government Relations Committee. The committee will collect and prepare our comments and testimony in the coming weeks. Members can also keep up with a high-level summary of what's going on with AAFA's Trade War Heat Map and last week’s member webinar "Trade War or Friendly Dispute? Managing the Chaos" now available for download in AAFA's Webinar Learning Center. 

2017 Economic Census civic duty notice: The U.S. Census Bureau measures the nation’s population once every 10 years. It also measures U.S. businesses every five years with the Economic Census and depends on the participation of businesses like yours! The Economic Census is the most comprehensive source of information about American businesses from the national to the local levels. Reports like the gross domestic product (GDP), national income and product accounts (NIPAs), and producer price index (PPI) are benchmarked using economic census data. To begin your submission, go to portal.census.gov and create an account or log in with your already existing account. Start here for more information on how to take part. 

Our meeting with the Ambassador of Indonesia: Last week, AAFA President and CEO Rick Helfenbein and SVP of Supply Chain Nate Herman met with Ambassador Budi Bowoleksono at the Embassy of Indonesia. A key focus of the conversation was the Generalized System of Preferences (GSP) and the importance of the program for both Indonesia and the apparel and footwear industry. 

Ambassador Budi Bowoleksono of Indonesia and AAFA President and CEO Rick Helfenbein.

See all of AAFA’s latest letters, comments, and testimony here.

Congress and government agencies solicit comments on a range of issues that may affect your business – find a list of comment opportunities here.
AAFA Events
July & August
July 18 Webinar: Licensed Product Challenges and Solutions
July 19 Government Relations Committee Lobby Day
August 2 Webinar: Managing Brand Success in an Unpredictable World
August 7 Environmental Committee Meeting
August 8 Traceability Seminar
August 9 Social Responsibility Committee Meeting
August 22 Webinar: Managing Transportation Security Risks
Visit our events calendar for all AAFA webinars and industry events.

We hope to see our footwear friends September 27 at New Balance in Lawrence, MA for the


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