AAFA Calls for Cumulation in Colombia and Peru FTAs

The American Apparel & Footwear Association ("AAFA") recently wrote to United States Trade Representative Michael Froman to express strong support for the negotiation of provisions that will establish "cumulation" within the Peru and Colombia Trade Promotion Agreements, stating:

As you may know Article 3.3.14 of the Colombia agreement and Article 3.3.14 of the Peru agreement contain provisions that authorize the negotiation of cumulation with other countries in the region. Such measures are urgently needed to help ensure that regional textile and apparel supply chains do not remain fragmented and that they can create unified markets for U.S. yarns and fabrics.

Under current rules, Colombia can only use inputs from itself and the United States. Likewise, Peru is also restricted to textile inputs originating from itself and the United States. Such policies artificially sever regional supply chains that U.S. apparel companies use, increasing their costs while diminishing the size of key U.S. yarn and fabric export markets. The current situation also stands at odds with historical U.S. trade policies. As recently as last year, these countries could also use inputs from each other, from other Andean countries, and, in certain cases, from Central America.

The letter is available on the AAFA website at https://www.wewear.org/assets/1/7/AAFA_Colombia-Peru_Letter_to_Froman_092313.pdf