AAFA Weekly Brief
January 31, 2017
Supply Chain
January 31: President Donald Trump signed an order on Monday that will seek to dramatically reduce federal regulations, but the policy will not apply to most of the financial reform rules introduced by the Obama administration. Trump's latest executive action will require that agencies cut two existing regulations for every new rule introduced and it will set an annual cap on the cost of new regulations. ... But, the move does not cover independent agencies that crafted many of the rules required by the 2010 Dodd-Frank Wall Street reform law, including the Securities and Exchange Commission and the Commodity Futures Trading Commission, the White House said. (Source: Reuters)
January 26: One of the biggest questions faced by brick-and-mortar retailers today is whether prices should be the same online and in stores. Gaining clarity on this issue is critical for traditional retailers to successfully compete in both environments. ... Brick-and-mortar retailers have a strategy problem. To avoid going the way of milkmen, they have to continue to: ramp up web operations; create new reasons —and value —for consumers to patronize stores; and limit physical locations to areas with populations dense enough to support stores. (Source: Harvard Business Review)
January 20: When compliance problems arise, factories shouldn’t be the only ones to blame—the onus should fall on social auditors too. That’s at least according to a new policy paper on the "Liability of Social Auditors in the Textile Industry," published by the European Centre for Constitutional and Human Rights. (Source: Sourcing Journal - article unlocked)
Milgram Freight Services
January 30: Washington, D.C., is interesting these days. Just when you thought you would see a few big parades and things would settle down, the House Republicans have started to move aggressively on a tax script for a new horror movie called BAT. This new blueprint could severely affect your business. (Source: Women's Wear Daily, op-ed by AAFA's Rick Helfenbein - article unlocked)

January 29: A proposed overhaul of the U.S. tax code favored by Republicans in the House of Representatives is drawing fire from small-business owners who sell everything from toys to materials used in kitchen cabinets. Some business owners say they worry that a part of the proposal, known as border adjustment, could force them to raise prices and lay off workers. Others fear it could even put them out of business. (Source: Wall Street Journal)
January 25: ... So with Donald J. Trump in charge, what happens now to the North American Free Trade Agreement? It’s one thing to assail it as the "worst trade deal ever" as the president did during the campaign. It’s quite another to come up with an arrangement that is more advantageous to American workers and businesses. ... Trade experts say there really is room to make major change in the two-decade-old agreement. A renegotiation could well lead to a better deal for all three countries. But it will require the United States to make concessions that the Trump administration may be wary of offering. If not approached carefully, revamping an agreement that has created the economic underpinning of major industries would risk American jobs as well as higher prices for consumers. (Source: New York Times)
Do you have a solid supply chain strategy?
Milgram Freight Services
Importing to Canada? We’re Canadian and we know Canada and its customs! Milgram is a premium Canadian Customs Broker servicing the largest apparel companies for over 65 years. We are also experts in International Freight and Truck Transportation. Visit us online or call us for a consultation to learn more about what Milgram can for you.
Brand Protection
January 25: ... Figures from Checkpoint Systems, a loss-prevention organisation for the retail trade, revealed that theft costs UK High Street stores £4 billion a year — 1.3 per cent of their turnover and the highest figure in Europe. Of the 700,000 cases of retail crime reported each year, 83 per cent are customer thefts — and women’s clothes are the most commonly stolen item. (Source: Daily Mail)
January 19: Alibaba chief Jack Ma says he hopes a new accord with Olympics officials will help fight counterfeiting, as the e-commerce giant seeks to repair its image after being deemed a "notorious" market for fakes by the U.S. government. The Chinese billionaire and International Olympic Committee President Thomas Bach announced [January 19] a partnership to run through 2028 in which Alibaba will support the $500 million Olympic Channel in China, among other things. (Source: Associated Press)
Naylor Association Solutions

In Brief
Border Adjustment Tax updates: Issues surrounding the proposed Border Adjustment Tax continue to dominate the debate in Washington, D.C. as Congressional Republicans and President Trump work on corporate tax reform. AAFA is on the front lines of this issue, speaking with members of the House's Ways and Means Committee, as well as directly with the authors of the bill, House Ways and Means Committee Chair Kevin Brady (R-TX) and House Speaker Paul Ryan (R-WI), to express our concerns and ask questions regarding the proposal. We are also expressing our concerns to the Trump administration. Three ways to take action today:

AAFA in the news: Last week, AAFA President and CEO Rick Helfenbein appeared on CNBC Asia, Squawk Box with Bernie Lo to discuss trade, tariffs, and the proposed border adjustability tax. See a brief segment of the interview here. See more of AAFA’s recent press highlights here.  

Prop 65 Restricted Substances List (RSL) Guidance now updated: In case you missed it, the fifth edition of the Proposition 65 (Prop 65) RSL is now available to AAFA members here (login required). This tool was created to serve as a guide of the lowest limits on certain chemicals for products in the fashion and fashion accessories industry. Questions? Contact Danielle Iverson

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: Newtimes Group

One of world's largest supply chain companies, Newtimes Group specializes in design, product development, sourcing, and logistics of apparel and home products. Our team of 1,500 employees is exporting from over 40 offices around the world to U.S., Europe, and Asia. 

AAFA Events
Feb. 8Environmental Committee Meeting
Feb. 9Social Responsibility Meeting
Feb. 15 Webinar: Best Practices from Vans: Proactively Combatting Counterfeits
Feb. 23 Webinar: The Data You Need to Evaluate Your 2016 Holiday Sales
Feb. 28 Executive Committee & Board of Directors Meeting

Be sure to register today for AAFA'sExecutive Summit: March 1-3 in Washington, D.C. Rooms at The Watergate Hotel are filling up! Full agenda.
Worried about the proposed Border Adjustment Tax?
RSVP to Maureen Storch to attend AAFA’s open-industry meeting, Feb. 22 at MAGIC

Visit our events calendar for all AAFA webinars and industry events.
Other Industry Events
May 4-5, 2017 | New York City
Nate Herman, AAFA’s Senior Vice President, Supply Chain will present an update on the state-of-play in Washington, D.C., and how it could impact your business. President Trump’s inauguration is now complete and we are all waiting to see what impact the new administration's policies and Congressional legislation will have on trade, regulations, and executive orders. After four months in office come May, Nate will lead a lively debate and provide his insights on the impact to our supply chains and compliance efforts.


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