AAFA Weekly Brief
August 7, 2018
Newsletter at-a-glance
The Trump administration is considering a severe increase to the tariff rate on the existing list of $200 billion worth of U.S. imports from China that will be open for public comment later this month. Learn more under Trade and AAFA News.
August 7: ... smaller U.S.-based denim companies, many of which focus on higher-end apparel, may suffer more than their bigger rivals. ... "[when] exporting those jeans from China and Bangladesh or elsewhere ... it will not count as a U.S. export, even though it's a sale for [those brands]," said Nate Herman, senior vice president of supply chain at the American Apparel & Footwear Association, in an interview with CBS MoneyWatch. "It will count as an export from China or an export from Bangladesh." (Source: CBS Moneywatch)
August 3: ... The latest shot came Friday, when China released a list of $60 billion in U.S. goods that Beijing intends to hit with tariffs in retaliation for Trump’s plan to impose duties on $200 billion in Chinese imports. While the Chinese threat isn’t proportional in absolute dollars, it’s actually an escalation on a relative basis, given that China buys less from the U.S. (Source: Bloomberg)
August 2: ... If this sounds like déjà vu, it is. Under the Obama administration, U.S. trade representatives in 2013 started to negotiate what was called the Transatlantic Trade and Investment Partnership, or TTIP. "This is certainly a step in the right direction," said Rick Helfenbein, president and chief executive of the American Apparel & Footwear Association, a Washington, D.C., trade group that represents major clothing manufacturers and importers. (Source: California Apparel News)
August 1: ... Stephen Lamar, executive vice president of the American Apparel & Footwear Association, urged the administration to "focus its efforts on resolving underlying concerns with China and remedying that country’s trade practices, rather than finding new ways to make the trade war more painful for American consumers and American workers." (Source: Women's Wear Daily - login required)
Supply Chain
August 2: ... Trump’s suspension of Rwanda which was confirmed on Monday will not affect other duty-free benefits under the African Growth and Opportunity Act (AGOA). On Tuesday, the Rwandan government responded to the suspension saying that their garment companies are already being introduced to European buyers. (Source: Face2Face Africa)
July 31: ... "This is a constant source of worry and concern," Steve Lamar, executive vice president of the American Apparel and Footwear Association, said of the Nicaraguan upheaval, which has killed 440 people and wounded 2,800 in 100 days of antigovernment protests, a human rights watchdog said Saturday. (Source: Women's Wear Daily - login required)
July 24: Brands around the world are increasingly embracing sustainability  and not just for reputation management as it was in the past. A McKinsey survey revealed how many companies are applying sustainability principles to improve their operations and boost productivity and growth. (Source: Entrepreneur)
Supply chains don’t have to be complicated?
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Brand Protection
August 6: The analytics system can scour social media and shopping sites 24 hours a day. (Source: South China Morning Post)
August 6: ... The Commercial Compliance and Consumer Protection sector of [the Dubai Department of Economic Development] worked with affected brands to switch off the accounts, which had attracted more than 33 million followers. (Source: The National - UAE)
August 1: ... Pinduoduo has come under growing scrutiny since the company filed for a public listing in the US early last month. The company operates as an e-commerce platform that lets third-party vendors sell items to consumers, pioneering a social group-buying model that offers buyers generous discounts if they share the product listing with a friend who also purchases the item. (Source: South China Morning Post)
Naylor Association Solutions
Naylor Association Solutions
Additional tariff retaliation on the horizon? On August 1, the Office of the U.S. Trade Representative (USTR) released a statement that it will consider increasing the tariff rate on the list of $200 billion worth of U.S. imports from China, that the administration is currently considering for rate of 10%, to a higher rate of 25%. This list includes imports of textiles, travel goods, hats, specialty apparel, accessories, and machinery. China has indicated it has identified a $60 billion list to retaliate should the tariffs be imposed. While the statement from USTR did not indicate a decision on whether to increase the tariff rate, the action would more than double the tariff bill for American consumers, American workers, and American businesses. 

The deadline to submit comments on this list is August 17, with public hearings being held August 20-23. AAFA has requested to testify and encourages members to submit written comments. Please contact AAFA’s Steve Lamar or Nate Herman to discuss further.

Opposition to third party liability drayage trucker labor bill in California: On August 2, AAFA joined others in opposing a California bill that would impose liabilities on third parties for employment law violations of drayage truck operators. For further details, contact Nate Herman

Don’t miss Rob DeMartini at the Footwear Workshop! Last week, AAFA was thrilled to announce our friend, tireless leader, and gracious host — Rob DeMartini of New Balance — will open the day at AAFA's upcoming Footwear Workshop: Sourcing Trends, Trade, & Compliance! For more information, access the detailed agenda. AAFA’s footwear members are also invited to take part in the AAFA Footwear Action Committee – a platform for members to discuss issues unique to the production, sourcing, and selling of shoes. For more information on engagement in the committee, contact AAFA’s Nate Herman.

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.

Member Welcome: Integral Consulting Inc.

Integral Consulting Inc. is an international science and engineering firm providing multidisciplinary services in the fields of health, environment, technology, and sustainability.

AAFA Events
August & September
August 7 Environmental Committee Meeting
August 8 Traceability Seminar
August 9 Social Responsibility Committee Meeting
August 22 Webinar: Managing Transportation Risks
September 6 Webinar: Removing Dangerous Chemicals from the Supply Chain 
September 27 AAFA Footwear Workshop 
Visit our events calendar for all AAFA webinars and industry events.



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