The deadline to comment was January 5, 2018.
Comments were received in favor from American Apparel and Footwear Association.
Comments in opposition were submitted by:
On January 5, 2018, officials from the United States and the Republic of Korea met at the Office of the U.S. Trade Representative to advance talks related to the U.S.-Korea (KORUS) Free Trade Agreement, including negotiations on Agreement modifications and amendments. The United States delegation was led by Michael Beeman, Assistant U.S. Trade Representative for Japan, Korea and APEC. The Republic of Korea delegation was led by Ms. Myung-hee Yoo, Director General from the Ministry of Trade, Industry and Energy (MOTIE).
Both sides engaged on their priority areas of interest during the day-long session. The United States discussed proposals to move towards fair and reciprocal trade in key industrial goods sectors, such as autos and auto parts, as well as to resolve additional cross-cutting and sector-specific barriers impacting U.S. exports.
At the conclusion of the session today, Ambassador Robert Lighthizer said, “We have much work to do to reach an agreement that serves the economic interests of the American people. Our goals are clear: we must achieve fair and reciprocal trade between our two nations. We will move forward as expeditiously as possible to achieve this goal.”
Both sides agreed to follow-up to discuss timing for the next meeting in the very near term.
At the direction of President Trump, in July 2017 Ambassador Lighthizer initiated talks to consider matters affecting the operation of the KORUS FTA, including amendments and modifications to resolve several problems regarding market access in Korea for U.S. exports and, most importantly, to address the significant trade imbalance. In 2017, the United States and Korea convened two specials sessions of the KORUS Joint Committee, which were held on August 22, 2017 and October 4, 2017. This meeting was the first held between both sides since the completion of related domestic procedures in Korea in late December 2017.
To Whom It May Concern:
I write as a consultant to the U.S. textile industry to oppose the request to modify the rules of origin for certain women's jackets, skirts, and pants of chief weight combed wool, classified at 6204.31.2010 Harmonized Tariff Schedule of the United States ("HTSUS"), 6204.51.0010 HTSUS, and 6204.61.8010 HTSUS, under the U.S.-Morocco Free Trade Agreement ("USMFTA"), published November 6, 2017, at 82 FR 51401. The Government of Morocco, on behalf of the apparel manufacturer Modaline, has requested that apparel articles of the above description not be excluded from USMFTA duty-free entry due to certain non-originating woven wool fabrics, specifically fabrics of 83-94% combed (worsted) wool, 4-15% nylon, and 1-7% spandex, classified at 5112.19 and 5112.20 HTSUS. I write on behalf of my clients American Woolen Company, Northwest Woolen Mill, and Pendleton Woolen Mills.
My clients are ready and able to supply the fabrics in question. Please note that "Woolen" in a company name does not mean that the company is limited to woolen (carded wool), these U.S. manufacturers also weave fabrics of worsted (combed) wool and worsted wool blends, including the blends the subject of this request. I further note that under the terms of the USMFTA the yarns also must originate. My clients currently source these yarns in the U.S. for programs under other FTAs and in fabrics for U.S. Department of Defense contracts which, under the "Berry Amendment" are required to have 100% U.S. content from fiber to finished article.
The request from the Government of Morocco should be rejected "out of hand" as failing to present any factual basis for the request. No attempt is made in the request to demonstrate short supply of the fabric in the region. No evidence is presented of any attempt to contact potential suppliers in the U.S. or Morocco. While the USMFTA does not include a "due diligence" requirement such as that in the Commercial Availability ("Short Supply") provisions of some FTAs, I believe it is an abuse of the USMFTA consultation on rules of origin provision to submit a request without doing even the slightest to determine whether it has any justification. My clients would rather be busy making fabric and making money than responding to utterly meritless requests. As a taxpayer I object that U.S. government resources must be used to investigate and respond to this meritless request.
The sole justification given in the request for modifying the rules of origin is the December 31, 2015, expiration of the USMFTA Tariff Preference Level ("TPL") provision, in an initial amount of 30 million square meter equivalents, phased down to 4.3 million in the final year, and now is entirely eliminated. The TPL is a derogation from the general "yarn forward" rule of the USMFTA. The yarn forward rule is at the very foundation of U.S. FTA policy as respects textiles and apparel. The TPL was a generous temporary dispensation from the rule. Now that it is expired it is inappropriate to invoke it as justification for changes to the rules of origin.
1. Morocco agreed to the yarn forward rule and should live up to that agreement.
2. The expiration of the TPL, after ten years, is one of the provisions of the agreement. Morocco had ten years, during that transition period, to build its own industry to supply these fabrics or establish business relations with U.S. textile manufacturers who made these fabrics. It appears that Morocco did neither.
3. Approval of these request relating to three specific types of women's wear will likely result in subsequent requests relating to other articles of apparel and other woven wool fabrics.
4. It would be unfair to the other 17 nations that are free trade partners with the U.S. under the terms of 11 agreements who, with only narrow, carefully carved out exceptions, operate under the yarn forward rule.
5. If granted, this request will prompt other current and future free trade partners to seek short supply status for the same fabrics.
6. Unlike the expired TPL, which has annual caps, the request is unlimited as to quantity, and, if approved, would create an incentive for Morocco to increase production of apparel of third-country fabric.
Because these fabrics are available from domestic U.S. sources that will be harmed were the request granted, and because no U.S. textile industry interests can possibly be aided by the requested changes, I urge in the strongest terms that the U.S. reject this request.
If you have any questions please contact me at 617-237-6008 or david@agathonassociates.com.
Yours,
David Trumbull
The sixth round of the renegotiation and modernization of the North American Free Trade Agreement (NAFTA) will take place in Montreal, Canada, from January 23 to 28, 2018.
Global Affairs Canada invites media to register online on its Registration and Accreditation Portal by 11:59 p.m. ET, on January 16, 2018.
Additional logistical information for media is available online.
Background: Article 4.3.3 of the United States-Morocco Free Trade Agreement provides that, on the request of either Party, the Parties shall consult to consider whether the rules of origin applicable to a particular textile or apparel good should be revised to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. If a particular fiber, yarn, or fabric is found to not be available the rules of origin may be modified to allow non-originating fiber, yarn, or fabric. This is commonly known as a "short supply" request. In a egregious violation of the spirit of the agreement, and in total disregard for the facts, the government of Morocco has presented the U.S. with an outrageous proposed "short supply" list, alleging that there is no U.S. production of woven fabric of wool or knitted fabric of any fiber.
Comments must be submitted by January 5, 2018 to the Chairman, Committee for the Implementation of Textile Agreements. Agathon Associates is available to assist any of the scores of U.S. companies that make the fabrics the subject to this utterly without merit request.
The Government of the United States received a request from the Government of Morocco on October 10, 2017, on behalf of MODALINE HOLDING, requesting that the United States consider whether the USMFTA rules of origin should be modified to allow the use of 83-94% wool/4%-15% nylon/1%-7% spandex woven fabric classified in subheading 5112.19 and 5112.20 of the HTSUS that is not originating under the USMFTA.
The Government of the United States received a request from the Government of Morocco on October 10, 2017, on behalf of SALSABILE, requesting that the United States consider whether the USMFTA rule of origin for certain knit apparel should be modified to allow the use of certain knit fabrics that are not originating under the USMFTA. The fabrics subject to this request are--
Fabric 1: Knit fleece fabric of acrylic (67-73%) and viscose (27-33%), weighing 200-280 g/m2, classified in subheading 6001.22 of the HTSUS.
Fabric 2: Dyed knit fabric of nylon (52-58%), wool (27-33%), and acrylic (12-18%), classified in subheading 6006.32 of the HTSUS.
Fabric 3: Dyed knit fabric of nylon (42-48%), viscose (37-43%), and wool (12-18%), classified in subheading 6006.32 of the HTSUS.
Fabric 4: Dyed knit fabric of nylon (41-47%), wool (18-24%), acrylic (18-24%), and mohair (11-17%), classified in subheading 6006.32 of the HTSUS.
Fabric 5: Dyed knit fabric of cotton (50-56%), acrylic (34-40%), and polyester (7-13%), classified in subheadings 6006.22 and 6006.32 of the HTSUS.
Fabric 6: Dyed knit fabric of polyester (57-63%), wool (27-33%), and nylon (7-13%), classified in subheading 6006.32 of the HTSUS.
Fabric 7: Dyed knit fabric of cotton (51-60%), rayon (30-40%), and nylon (4-10%), classified in subheading 6006.22 of the HTSUS.
Fabric 8: Knit fabric of rayon (50-84%), polyester (14-49%), and elastomeric (1-10%), classified in subheadings 6004.10, 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.
Fabric 9: Knit fabric of polyester (50-65%), rayon (30-49%), and elastomeric (1-10%), classified in subheadings 6004.10, 6005.36, 6005.37, 6005.38, 6005.39, 6006.31, 6006.32, 6006.33, and 6006.34 of the HTSUS.
Fabric 10: Knit fabric of rayon (90-99%) and elastomeric (1-10%), classified in subheadings 6004.10, 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.
Fabric 11: Knit fabric of rayon (51-84%) and polyester (16-49%), classified in subheadings 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.
Fabric 12: Knit fabric of polyester (51-65%) and rayon (35-49%), classified in subheadings 6005.36, 6005.37, 6005.38,6005.39, 6006.31, 6006.32, 6006.33, and 6006.34 of the HTSUS.
Fabric 13: Knit fabric of synthetic fiber (90-99%) and elastomeric (1-10%), classified in subheadings 6004.10, 6005.37, 6005.38, 6005.39, 6006.32, 6006.33, and 6006.34 of the HTSUS.
Fabric 14: Knit jersey fabric, other than warp knit, of lyocell (44-50%), rayon (44-50%), and elastomeric (3-9%), weighing 150-220 g/m2, classified in subheadings 6004.10 and 6006.42 of the HTSUS.
Fabric 15: Slub jersey fabric of cotton (51-65%) and rayon (35-49%), weighing 120-225 g/m2, classified in subheading 6006.22 of the HTSUS;
Fabric 16: Knit jersey fabric, other than warp knit, of rayon (30-36%), acrylic (19-35%), polyester (27-33%), and elastomeric (3-8%), weighing 125-250 g/m2, classified in subheadings 6004.10 and 6006.32 of the HTSUS.
Fabric 17: Knit fabric of cotton (51-70%), rayon (33-49%), and elastomeric (2-7%), weighing up to 275 g/m2, classified in subheadings 6004.10, 6006.21, 6006.22, and 6006.24 of the HTSUS.
Fabric 18: Knit jersey fabric, other than warp knit, of polyester (43-46%), rayon (43-45%), flax (5-9%), and elastomeric (4-5%), weighing 125-250 g/m2, classified in subheadings 6004.10 and 6006.32 of the HTSUS.
Fabric 19: Slub jersey fabric, other than warp knit, of rayon (92-98%), polyester (2-3%), and elastomeric (2-5%), weighing 150-200 g/m2, classified in subheadings 6004.10 and 6006.42 of the HTSUS.
Public comment period closes on January 5, 2018.
The list includes a wide range of circular knits, warp knits, stretch knits, and fleece. Note, that the classifications given for the fabrics are at the 6-digit subheading level, which is much broader than the U.S. 10-digit statistical breakout that many U.S. companies are accustomed to working with, with the result that each of the 19 "fabrics" is actually a itself of group of fabrics. Agathon Associates has prepared a SPREADSHEET to assist clients in evaluating this long list of requested fabrics. Also note, that although the request from the Government of Morocco relates the fabrics on the list to specific end-use apparel articles, it is likely that were a fabric approved from a particular end use, that future requests may be made for the same fabric for other end uses, and approval in this case would be cited as the basis for the later request.
On December 18, 2017, Milliken and Company submitted Comments in Opposition, stating they can make all of the knit fabrics subject of the request.
As of noon on January 3rd the OTEXA website did not show any comments received regarding the woven wool fabric short supply request.
“Canada’s forestry industry supports good middle-class jobs in communities across our country. The Government of Canada will continue to vigorously defend our industry and its workers against protectionist trade practices.
“U.S. duties on Canadian softwood lumber are unfair, unwarranted and troubling. They are harmful to Canada’s lumber producers, workers and communities, and they add to the cost of home building, renovations and other projects for American middle-class families.
“Canada has already begun legal challenges of these duties under NAFTA and through the WTO, where Canadian litigation has proven successful in the past.
“We will continue to work with the provinces and territories, as well as with Canadian industry and workers, to find an enduring solution. Canada will also continue to engage with the U.S. Administration and with American legislators to come to a new agreement on softwood lumber.”
Description: This recall involves Comfort Research’s Ultra Lounge bean bag chair covers. The natural polyester Sherpa, teardrop-shape bean bag chair cover measures 28 inches by 28 inches by 36 inches and has two zippers on the exterior. The covers were sold without foam bead filling in a DIY package. The covers have three sewn-in tags. One tag reads “id COLORS” on the front and “RN48711” on the back. The second tag has the UPC label code “PO#12991” or “PO#13539” on the front. And, the third tag has the care and use instructions printed on one side and the warning notice on the other.
Remedy: Consumers should immediately take bean bag chairs with the recalled covers away from children and contact Comfort Research for a full refund.
Incidents/Injuries: None reported
Sold At: Kroger, Meijer and Shopko from April 2017 through August 2017 for between $30 and $40.
Manufacturer(s): Comfort Research LLC, of Grand Rapids, Mich.
Manufactured In: U.S. and China
Recall number: 18-076
