U.S. Knitters File Opposition to Morocco Short Supply Request

On April 18, 2019, the Committee for the Implementation of Textile Agreements published in the Federal Register (84 FR 16243) Request for Public Comment on a Commercial Availability Request Under the U.S.-Morocco Free Trade Agreement

SUMMARY: The Government of the United States received a request from the Government of Morocco dated March 14, 2019, on behalf of GOTTEX SWIMWEAR BRANDS LTD to initiate consultations under Article 4.3.3 of the USMFTA. The Government of Morocco is requesting that the United States and Morocco consider revising the rules of origin for women's or girls' swimwear to address availability of supply of certain knit fabric in the territories of the Parties. the USMFTA.

Comments in opposition were filed by:

• Darlington Fabrics, and
• Elastic Fabrics of America.

Agathon Associates notes that the request from the Government of Morocco states that the third-country fabric that would be the beneficiary of the proposed modification will incorporate Lyrca® brand spandex produced in Ireland by U.S.A.-based manufacturer Invista. We fail to see the relevancy of this statement. If the rule of origin is modified to allow third-country fabric, the origin of the yarn in the fabric is irrelevant, and the yarn could be sourced from any of the many spandex manufacturers located in several countries. However, if the rule is not modified, and GOTTEX chooses to use fabric made in the U.S., the source of the yarn will also be U.S. -- from Invista, the sole U.S. producer of spandex -- due the requirement in the USMFTA that elastomeric yarn in the component that determines the tariff classification of the garment must be 100% originating in the region.