Wednesday, January 31, 2018

USTR Lighthizer’s Statement on President Trump’s State of the Union Address

U.S. Trade Ambassador Robert Lighthizer released the following statement about President Trump’s State of the Union Address: “After a year of accomplishments by the Trump Administration, America is stronger, more confident and more optimistic. The President’s policies are clearly helping to fuel an economic boom that is creating millions of jobs and putting more money in people’s pockets. His unwavering commitment to promoting America’s interests and insisting on fair and reciprocal trade will deliver even more prosperity to the American people. As the President has said, America is no longer turning a blind eye to unfair foreign trade practices. We are and will continue to strongly enforce our trade laws and defend American workers, farmers, ranchers and businesses.”

Army Apparel Contract Awarded

Bluewater Defense Inc., Corozal, Puerto Rico, has been awarded a maximum $62,509,500 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for Army combat uniform coats and trousers. This is a one-year base contract with four one-year option periods. Maximum dollar amount is for the life of the contract. This was a competitive acquisition with 13 responses received. Location of performance is Puerto Rico, with a Jan. 29, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-18-D-1030).

Tuesday, January 30, 2018

Closing Statement of USTR Robert Lighthizer at the Sixth Round of NAFTA Renegotiations

On January 29, 2018, Ambassador Lighthizer delivered the following statement:

It is a pleasure to be here in Quebec. Montreal is one of the great cities of the world, and I have not been back in many years, and I’ve missed it. I used to come here in the 70s and 80s with my wife and children to go to Mont-Tremblant and learn how to ski. We loved the French culture, we loved the excellent food, the wonderful skiing and as I recall, it was cold all the time. That hasn’t changed at least.

I always thought that Quebec has the greatest motto anywhere: “Je me souviens.” It is a perfect comment on history, culture, and even the future. I think it is a perceptive motto for a trade negotiator. Maybe we’ll put it up at USTR – “Je me souviens.” You can see it when you walk in.

Since we are in Canada, let me talk a bit about our bilateral trade relationship. I think there is some misunderstanding here that the United States is somehow being unfair in these negotiations and that is not the case.

Free trade agreements are essentially grants of preferential treatment to other countries in exchange for an approximately equal grant of preferential treatment in their economy. Thus, it is reasonable from time to time to assess whether the bargain has turned out to be equitable.

Using Canadian statistics, Canada sold the United States $298 billion U.S. dollars in goods in 2016, the last numbers that we have. We sold Canada $210 billion dollars in goods. Now that’s a lot of two-way trade, but it also means that Canada has an over $87 billion U.S. dollar surplus with the United States. To put this in perspective, that figure is equal to approximately 5.7 percent of Canada’s GDP. When energy is removed, and in some people’s opinion that’s a fair thing to do, the number is still $46 billion dollars. The projected figures for 2017 show that the surplus will be even larger when those numbers are in.

Now I ask Canadians because we’re in Canada, is it not fair for us to wonder whether this imbalance could in part be caused by the rules of NAFTA? Would Canada not ask this same question if the situation were reversed? So we need to modernize and we need to rebalance.

Now let me turn to the Sixth Negotiating Round and the status of our talks. We believe that some progress was made. We closed one chapter, as Ildefonso [Guajardo] said it was the chapter on corruption, which is a very important chapter, and we made some progress on a few others. More importantly though, we finally began to discuss some of the core issues. So this round was a step forward, but we are progressing very slowly.

We owe it to our citizens, who are operating in a state of uncertainty, to move much faster. Of course, negotiating as a group of three is more difficult than bilateral talks. Often, issues become more complicated and contentious when there are three parties.

I would like to comment on two proposals by the Canadians, one of which has been in the press quite a bit, and that is a presumed compromise on rules of origin. We find that the automobile rules of origin idea that was presented, when analyzed, may actually lead to less regional content than we have now and fewer jobs in the United States, Canada, and likely Mexico. So this is the opposite of what we are trying to do.

In another proposal, Canada reserved the right to treat the United States and Mexico even worse than other countries if they enter into future agreements. Those other countries may, in fact, even include China, if there is an agreement between China and [Canada]. This proposal, I think if the United States had made it, would be dubbed a “poison pill.” We did not make it, though. Obviously, this is unacceptable to us, and my guess is it is to the Mexican side also.

Finally, I would like to refer, because I think it fits into this context to an unprecedented trade action that Canada brought against the United States very recently. It constitutes a massive attack on all of our trade laws. If it were successful, it would lead to more Chinese imports into the United States and likely fewer Canadian goods being sold in our market. Now we understand that countries often challenge specific actions taken by another country in the context of trade laws. This is normal and what we expect. But this litigation essentially claims that 24 years ago, the United States effectively gave away its entire trade regime in the Uruguay Round. Of course, we view this case as frivolous, but it does make one wonder if all parties are truly committed to mutually beneficial trade. It also underscores why so many of us are concerned about binding dispute arbitration. What sovereign nation would trust to arbitrators or the flip of a coin their entire defense against unfair trade?

To conclude, some real headway was made here today. The United States views NAFTA as a very important agreement. We are committed to moving forward. I am hopeful progress will accelerate soon. We will work very hard between now and the beginning of the next round, and we hope for major breakthroughs during that period. We will engage with both Mexico and Canada urgently, and we will go where these negotiations take us. Thank you very much.

United States, Korea Continue Modification and Amendment Negotiations on KORUS FTA

On January 25, 2018, United States Trade Representative Robert Lighthizer announced negotiations on amendments and modifications of the United States-Korea Free Trade Agreement (KORUS FTA) will be held in Seoul, Korea on January 31 and February 1, 2018. The United States will engage on priority areas with the goal of moving towards fair and reciprocal trade and resolving additional cross-cutting and sector-specific barriers impacting U.S. exports.

The United States delegation will be led by Michael Beeman, Assistant U.S. Trade Representative for Japan, Korea and APEC. The Republic of Korea delegation at the meeting will be led by Ms. Myung-hee Yoo, Director General from the Ministry of Trade, Industry and Energy (MOTIE).

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. The last meeting was held in Washington DC on January 5, 2018.

Monday, January 29, 2018

CCMI launches Fiber Box 2

CCMI announces the launch of Fiber Box 2.

Fiber Box 2 contains 24 samples of animal fibers including Cashmere, Yak, Camel Hair and Qiviut.

In many cases, animal fibers are chemically treated in dyeing, bleaching and other processes. Morphological features of fibers may change in these processes. Also, DNA and protein in the fibers are affected by heat and chemicals. Fibers are sometimes chemically treated to add particular characteristics. Changes in surface morphology and protein damage caused by chemical treatment may make identifying and distinguishing different animal fibres more difficult. Therefore, it is important for fiber analysts to understand the modification of fibers caused by chemical processing, whether the analyst applies microscopic methods or alternative methods such as protein and DNA analysis.

Fiber Box 2 contains natural (unprocessed) fibers and treated fibers from the same lots to provide analysts with useful information on changes caused by processing.

Fiber Box 2 also contains samples of genuine South American Camelids (Alpaca and Llama) and Qiviuk (Must ox hair).

The CCMI Fiber Box 2 will sell for 1,000 USD (One Thousand U.S. Dollars). The price includes freight to the destination but does not include the import duty of the importing country. The box will be sent by courier upon receipt of payment. Any questions please contact Jane Lomas of the Boston office at jlomas@cashmere.org.

Wednesday, January 24, 2018

CPSC Official to Attend Fiber Manufacturers Meeting

On February 2, 2018, Patty Adair, Consumer Product Safety Commission Office of Hazard Identification and Reduction, will be attending the American Fiber Manufacturers Association (AFMA) Winter Board Meeting

Tuesday, January 23, 2018

Foreign Military Business Opportunity

Please see below a tender for military uniforms from Heming Bjorna, CS Oslo. The tender is for all four Nordic countries and adds up to EUR 425 million EUR. So, a pretty large.

Here is the tender, defining the scope: http://ted.europa.eu/TED/notice/udl?uri=TED:NOTICE:476330-2017:TEXT:EN:HTML&src=0M

The tender is described in this article. Please use google translate from Norwegian to English. https://forsvaret.no/forsvarsmateriell/historisk-avtale-om-felles-anskaffelse-av-nye-uniformer

Statement by Canadian Minister of International Trade on successful conclusion of Comprehensive and Progressive Agreement for Trans-Pacific Partnership

The Honourable François-Philippe Champagne, Minister of International Trade, today issued the following statement:

“Strengthening Canada’s economic relationship with countries in the large and economically fast-growing Asia-Pacific region to support prosperity and create jobs for our middle class is a priority for Canada.

“Today, I am pleased to announce that Canada and the 10 other remaining members of the Trans-Pacific Partnership concluded discussions in Tokyo, Japan, on a new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). We are happy to confirm the achievement of a significant outcome on culture as well as an improved arrangement on autos with Japan, along with the suspension of many intellectual property provisions of concern to Canadian stakeholders.

“Canada has always said that we would only agree to a deal that is in Canada’s best interests. To that end, Canada has been working very hard on the new CPTPP, from spearheading the first meetings of officials in May 2017 to proposing several suspensions and changes to secure better terms for Canadians throughout this burgeoning region.

“Over the past year, we have also worked collaboratively with our partners to make the necessary changes so that the agreement builds real prosperity and creates opportunities. We said from the beginning that we didn’t want just any deal; we wanted a good deal for Canada and for Canadians. Canada went to great lengths to ensure to reach a progressive agreement that will benefit Canada and Canadians for decades to come. These involved a whole-of-government approach and direct engagement at the highest levels. The agreement reached in Tokyo today is the right deal. Our government stood up for Canadian interests, and this agreement meets our objectives of creating and sustaining growth, prosperity and well-paying middle-class jobs today and for generations to come.

“Canada has shown that it can and will work hard to set the terms of trade so the middle class can compete and win on the world stage.

“Canada successfully concluded an agreement with hard-fought gains for Canadians, thanks in large part to a dedicated and hard-working negotiating team and Canada’s special envoy Ian McKay.”

Canadian Minister of Environment and Climate Change, Catherine McKenna to promote NAFTA, in Mexico City, Houston, and Miami

The Government of Canada is working closely with its partners in the United States and Mexico to strengthen its trade relationships and create new jobs and opportunities for workers, businesses, and middle-class families.

As part of these efforts, the Minister of Environment and Climate Change, Catherine McKenna, will visit Mexico City, Houston, and Miami from January 22nd to January 24th, to meet with government leaders, climate scientists, and businesses to promote trade, jobs, climate solutions, and clean technology.

In Mexico City, Minister McKenna will meet with Rafael Pacchiano Alamán, Secretary of Environment and Natural Resources, to discuss the ongoing NAFTA negotiations on the environment chapter and the Canada-Mexico collaboration on climate change and ocean health.

In Houston and Miami, Minister McKenna will meet with government leaders and clean-technology companies to promote the importance of NAFTA as an engine of clean growth and prosperity. She will also meet with scientists working to help communities adapt to the impacts of climate change, including floods and other natural disasters.

During her visit, Minister McKenna will also host round tables with business leaders to advance opportunities for Canadian companies and workers, particularly in green technologies, and to meet with youth to discuss climate action and practical solutions to the impacts of climate change.

Notice of Proposed Changes to the Slate of Industry Trade Advisory Committees

The United States Trade Representative (Trade Representative) and the Secretary of Commerce (Secretary) plan to establish a new four-year charter term for the Industry Trade Advisory Committees (ITACs) beginning in February 2018. As part of the re-chartering process, the Secretary and the Trade Representative are proposing changes to the current slate of ITACs and invite interested parties to submit their view on these changes.

The deadline for submission of written comments is February 5, 2018 at midnight EST.

Section 135 of the Trade Act of 1974, as amended (19 U.S.C. 2155), establishes a private-sector trade advisory system to ensure that U.S. trade policy and trade negotiation objectives adequately reflect U.S. commercial and economic interests.

The current ITACs expire in February 2018, and the Secretary and the Trade Representative intend to renew the ITACs as described below for a new four-year charter terms for the ITACs to begin in February 2018 and end in February 2022.

For the 2014-2018 charter term, the Secretary and Trade Representative chartered: Thirteen sectoral ITACs advising on issues that affect specific sectors of U.S. industry; three ITACs advising on crosscutting, functional issues that affect all industry sectors and include specifically appointed members along with non-voting members from the industry specific ITACs to represent a broad range of industry perspectives; and a Committee of Chairs of the ITACs as follows:

  • (ITAC 1) Aerospace Equipment
  • (ITAC 2) Automotive Equipment and Capital Goods
  • (ITAC 3) Chemicals, Pharmaceuticals, Health/Science Products and Services
  • (ITAC 4) Consumer Goods
  • (ITAC 5) Distribution Services
  • (ITAC 6) Energy and Energy Services
  • (ITAC 7) Forest Products
  • (ITAC 8) Information and Communications Technologies, Services, and Electronic Commerce
  • (ITAC 9) Building Materials, Construction, and Nonferrous Metals
  • (ITAC 10) Services and Finance Industries
  • (ITAC 11) Small and Minority Business
  • (ITAC 12) Steel
  • (ITAC 13) Textiles and Clothing
  • (ITAC 14) Customs Matters and Trade Facilitation
  • (ITAC 15) Intellectual Property Rights
  • (ITAC 16) Standards and Technical Trade Barriers and a Committee of Chairs of the Industry Trade Advisory Committees.

For the 2018-2022 charter term, after considering the statutory factors listed above, the Secretary and the Trade Representative propose to streamline the ITACs as follows based on the nature of the U.S. industry in various sectors, the level of interest in serving on an ITAC (using the number of members and applications for appointment during the 2014-2018 charter terms), the level of activity of each ITAC (using the number of meetings and recommendations submitted during the 20142018 charter terms), and constraints on the resources to support and engage with the ITACs.

Combining the current ITACs on Distribution Services and on Services and Finance Industries into one ITAC on Services.

Combining the current ITACs on Forest Products and on Building Materials, Construction, and Nonferrous Metals into one ITAC on Forest Products, Building Materials, Construction, and Nonferrous Metals.

Changing the name of the ITAC on Information and Communications Technologies, Services, and Electronic Commerce to the ITAC on Digital Economy to reflect the innovation in and full scope of that industry sector.

Discontinuing the Committee of Chairs of the ITACs to both preserve staff resources and to ensure that all ITAC members receive relevant, timely, and unfiltered information directly from appropriate government staff.

This streamlining would result in eleven sectoral ITACs and three functional ITACs for the new four-year charter term as follows:

  • (ITAC 1) Aerospace Equipment
  • (ITAC 2) Automotive Equipment and Capital Goods
  • (ITAC 3) Chemicals, Pharmaceuticals, Health/Science Products and Services
  • (ITAC 4) Consumer Goods
  • (ITAC 5) Forest Products, Building Materials, Construction and Nonferrous Metals
  • (ITAC 6) Energy and Energy Services
  • (ITAC 7) Steel
  • (ITAC 8) Digital Economy
  • (ITAC 9) Small and Minority Business
  • (ITAC 10) Services
  • (ITAC 11) Textiles and Clothing
  • (ITAC 12) Customs Matters and Trade Facilitation
  • (ITAC 13) Intellectual Property Rights
  • (ITAC 14) Standards and Technical Trade Barriers

FTC Eliminates Out-Dated and Unnecessary Rule Relating to Textile Labeling

On January 23, 2018, the Federal Trade Commission published in the Federal Register (83 FR 3068) Rules and Regulations Under the Textile Fiber Products Identification Act; File Rule.

SUMMARY: The Commission amends the Rules and Regulations Under the Textile Fiber Products Identification Act ("Textile Rules") to delete therequirement that an owner of a registered word trademark, used as a house mark, furnish the FTC with a copy of the mark's registration with the United States Patent and Trademark Office ("USPTO") before using the mark on labels.

DATES: Effective on February 22, 2018.

The Commission imposed this requirement in 1959, presumably to obviate the need for the Commission to obtain paper copies of registrations from the USPTO. However, registered house marks now can be found by searching online or at the USPTO's website (www.uspto.gov)

Monday, January 22, 2018

2018 Penalties for Violations of Wool Rules Increased

On January 22, 2018, the Federal Trade Commission published in the Federal Register (83 FR 2902) Adjustments to Civil Penalty Amounts. Among the penalties being adjusted update for inflation are the penalties for violations of the Wool Products Labeling Act of 1939.

TEXTILE RULES: Agency Information Collection Activities; Proposed Collection; Comment Request.

On January 22, 2018, the Federal Trade Commission published in the Federal Register (83 FR 2992) Agency Information Collection Activities; Proposed Collection; Comment Request.

The Textile Fiber Products Identification Act ("Textile Act") prohibits the misbranding and false advertising of textile fiber products. The Textile Rules establish disclosure requirements that assist consumers in making informed purchasing decisions, and recordkeeping requirements that assist the Commission in enforcing the Rules. The Rules also contain a petition procedure for requesting the establishment of generic names for textile fibers.

Estimated annual hours burden: 37,007,147 hours (782,600 recordkeeping hours + 36,224,547 disclosure hours).

Recordkeeping: Staff estimates that approximately 12,040 textile firms are subject to the Textile Rules' recordkeeping requirements. Based on an average burden of 65 hours per firm, the total recordkeeping burden is 782,600 hours.

:Disclosure: Approximately 10,744 textile firms, producing or importing about 20.8 billion textile fiber products annually, are subject to the Textile Rules' disclosure requirements. Staff estimates the burden of determining label content to be 65 hours per year per firm, or a total of 698,360 hours and the burden of drafting and ordering labels to be 80 hours per firm per year, or a total of 859,520 hours. Staff believes that the process of attaching labels is now fully automated and integrated into other production steps for about 40 percent of all affected products. For the remaining 12.48 billion items (60 percent of 20.8 billion), the process is semi-automated and requires an average of approximately ten seconds per item, for a total of 34,666,667 hours per year. Thus, the total estimated annual disclosure burden for all firms is 36,224,547 hours (698,360 hours to determine label content + 859,520 hours to draft and order labels + 34,666,667 hours to attach labels). Staff believes that any additional burden associated with advertising disclosure requirements or the filing of generic fiber name petitions would be minimal (less than 10,000 hours) and can be subsumed within the burden estimates set forth above.

Estimated annual cost burden: $239,778,909 (solely relating to labor costs).

Friday, January 19, 2018

USTR Releases Annual Reports on China’s and Russia’s WTO Compliance

On January 19, 2019, USTR Released the Annual Reports on China's and Russia's WTO Compliance

"China and Russia have failed to embrace the market-oriented economic policies championed by the World Trade Organization (WTO) and are not living up to certain key commitments they made when they joined the WTO, the U.S. Trade Representative said in annual reports released today on each country’s compliance with WTO rules."

Selected highlights of the 2017 annual report on China’s WTO compliance:

  • "Today, almost two decades after it pledged to support the multilateral trading system of the WTO, the Chinese government pursues a wide array of continually evolving interventionist policies and practices aimed at limiting market access for imported goods and services and foreign manufacturers and service suppliers."

  • China’s regulatory authorities do not allow U.S. companies to make their own decisions about technology transfer and the assignment or licensing of intellectual property rights. Instead, they continue to require or pressure foreign companies to transfer technology as a condition for securing investment or other approvals."

  • China is determined to maintain the state’s leading role in the economy and to continue to pursue industrial policies that promote, guide and support domestic industries while simultaneously and actively seeking to impede, disadvantage and harm their foreign counterparts, even though this approach is incompatible with the market-based approach expressly envisioned by WTO members and contrary to the fundamental principles running throughout the many WTO agreements."

  • Many of the policy tools being used by the Chinese government are largely unprecedented, as other WTO members do not use them, and include a wide array of state intervention and support designed to promote the development of Chinese industry in large part by restricting, taking advantage of, discriminating against or otherwise creating disadvantages for foreign enterprises and their technologies, products and services."

Selected highlights of the 2017 annual report on Russia’s WTO compliance:

  • So far, Russia’s actions strongly indicate that it has no intention of complying with many of the promises it made to the United States and other WTO Members. This trend is very troubling."

  • Russia has done little in 2017 to demonstrate a commitment to the principles of the WTO or to many of the specific commitments that it made” in the negotiations leading to Russia’s membership in the WTO."

  • The agricultural sector continues to be one of the most challenging sectors for U.S. exporters. In addition to the import ban on nearly all agricultural goods from the United States and other WTO Members, Russia continues to erect barriers to U.S. agricultural exports."

  • In 2017, notwithstanding a few tariff reductions, Russia increasingly appeared to turn away from the principles of the WTO, instead turning inward through the adoption of local content policies and practices. Russia continued to rely on arbitrary behind-the-border measures and other discriminatory practices to exclude U.S. exports."
p>The complete report on China’s WTO compliance can be found here.

The complete report on Russia’s WTO compliance can be found here.

Bed Bath & Beyond Recalls Hudson Comforters by UGG Due to Risk of Mold Exposure

Recall Details

Units: About 175,000 in the U.S. (In addition, about 20 in Canada)

Description: This recall involves Hudson comforters by UGG. The polyester comforters were sold in four different solid colors: garnet, navy, gray, and oatmeal, and three sizes: twin, full/queen, and king. See “Sold At” section for affected dates of sale.

Incidents/Injuries: None reported

Sold At: Bed Bath & Beyond stores nationwide and online at www.bedbathandbeyond.com from August 2017 through October 2017 for about $70 (twin), $90 (full/queen), and $110 (king).

Manufacturer(s): BHF International LTD, of Hong Kong

Importer(s): Liberty Procurement Co. Inc., of Union, N.J., an affiliate of Bed Bath & Beyond Inc., of Union, N.J.

Distributor(s): Liberty Procurement Co. Inc., of Union, N.J., an affiliate of Bed Bath & Beyond Inc., of Union, N.J.

Manufactured In: China

Pictures available here: https://www.cpsc.gov/Recalls/2018/Bed-Bath--Beyond-Recalls-Hudson-Comforters-by-UGG-Due-to-Risk-of-Mold-Exposure.

Wednesday, January 17, 2018

Proposed Revocation Of One Ruling Letter And Revocation Of Treatment Relating To The Tariff Classification Of A Girl’s Upper Body Garment

In Binding Ruling Letter NY N279310, Customs and Border Protection classified a girl's upper body garment in heading 6109, HTSUS, specifically in subheading 6109.10.00, HTSUS, which provides for "T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton." CBP has reviewed NY N279310 and has determined the ruling letter to be in error. It is now CBP's position that the girl's upper body garment is properly classified, in heading 6212, HTSUS, specifically in subheading 6212.10.90, HTSUS, which provides for "Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted: Brassieres: Other." Furthermore, in NY N279310, CBP determined that based on the classification of the girl’s upper body garment in heading 6109, HTSUS, specifically in subheading 6109.10.00, HTSUS, the girl’s upper body garment did not qualify for preferential tariff treatment under the United States-Peru Trade Promotion Agreement. It is now CBP’s position that the girl's upper body garment, as properly classified in heading 6212, HTSUS, specifically in subheading 6212.10.90, HTSUS, meets the tariff shift requirement and qualifies for preferential tariff treatment under the PETPA.

Pursuant to 19 U.S.C. §1625(c)(1), CBP is proposing to revoke NY N279310 and to revoke or modify any other ruling not specifically identified to reflect the analysis contained in the proposed Headquarters Ruling Letter (“HQ”) H282945, set forth as Attachment B to this notice. Additionally, pursuant to 19 U.S.C. §1625(c)(2), CBP is proposing to revoke any treatment previously accorded by CBP to substantially identical transactions.

Before taking this action, consideration will be given to any written comments timely received. Comments must be received on or before February 9, 2018.

The proposed revocation, with full analysis, is available in U.S. Customs Bulletin, Vol. 52, No. 2, beginning on Page 28.

Miscellaneous Tariff Bill Clears House, On to Senate

On January 16, 2018, the House of Representatives passed the Miscellaneous Tariff Bill Act of 2018, H.R. 4318, 402 to 0. The bill now goes to the Senate. Tariff relief will be effective 30 days after enactment.

CPSC Staff to Attend Textile Standards Meetings

On January 21 though 24, 2018, Paige Witzen and Jacqueline Campbell of the Consumer Product Safety Commission will be attending the ASTM International Committee Meetings, D-13 on Textiles, in New Orleans, Louisiana.

Monday, January 15, 2018

CARE LABELING RULE Agency Information Collection Activities; Proposed Collection; Comment Request

On January 16, 2018, the Federal Trade Commission published in the Federal Register (83 FR 2156) Agency Information Collection Activities; Proposed Collection; Comment Request

The Care Labeling Rule requires manufacturers and importers to attach a permanent care label to all covered textile clothing in order to assist consumers in making purchase decisions and in determining what method to use to clean their apparel. Also, manufacturers and importers of piece goods used to make textile clothing must provide the same care information on the end of each bolt or roll of fabric.

Estimated annual hours burden: 32,600,587 hours (solely relating to disclosure).

Staff estimates that approximately 10,744 manufacturers or importers of textile apparel, producing about 18.4 billion textile garments annually, are subject to the Rule's disclosure requirements. The burden of developing proper care instructions may vary greatly among firms, primarily based on the number of different lines of textile garments introduced per year that require new or revised care instructions. Staff estimates the burden of determining care instructions to be 100 hours each year per firm, for a cumulative total of 1,074,400 hours. Staff further estimates that the burden of drafting and ordering labels is 80 hours each year per firm, for a total of 859,520 hours. Staff believes that the process of attaching labels is fully automated and integrated into other production steps for about 40 percent of the approximately 18.4 billion garments that are required to have care instructions on permanent labels. For the remaining 11.04 billion items (60 percent of 18.4 billion), the process is semi-automated and requires an average of approximately ten seconds per item, for a total of 30,666,667 hours per year. Thus, the total estimated annual burden for all firms is 32,600,587 hours (1,074,400 hours to determine care instructions + 859,520 hours to draft and order labels + 30,666,666 hours to attach labels).

Estimated annual cost burden: $214,221,229 (solely relating to labor costs).

DATES: Comments must be received on or before March 19, 2018.

WOOL RULES: Agency Information Collection Activities; Proposed Collection; Comment Request.

On January 16, 2018, the Federal Trade Commission published in the Federal Register (83 FR 2154) Agency Information Collection Activities; Proposed Collection; Comment Request.

The Wool Products Labeling Act of 1939 ("Wool Act") prohibits the misbranding of wool products. The Wool Rules establish disclosure requirements that assist consumers in making informed purchasing decisions and recordkeeping requirements that assist the Commission in enforcing the Rules.

Estimated Annual Hours Burden: 1,880,000 hours (160,000 recordkeeping hours + 1,720,000 disclosure hours). Recordkeeping: Staff estimates that approximately 4,000 wool firms are subject to the Wool Rules’ recordkeeping requirements. Based on an average annual burden of 40 hours per firm, the total recordkeeping burden is 160,000 hours.

Disclosure: Approximately 8,000 wool firms, producing or importing about 600,000,000 wool products annually, are subject to the Wool Rules’ disclosure requirements. Staff estimates the burden of determining label content to be 30 hours per year per firm, or a total of 240,000 hours, and the burden of drafting and ordering labels to be 60 hours per firm per year, or a total of 480,000 hours. Staff believes that the process of attaching labels is now fully automated and integrated into other production steps for about 40 percent of all affected products. For the remaining 360,000,000 items (60 percent of 600,000,000), the process is semiautomated and requires an average of approximately ten seconds per item, for a total of 1,000,000 hours per year. Thus, the total estimated annual burden for all firms is 1,720,000 hours (240,000 hours for determining label content + 480,000 hours to draft and order labels + 1,000,000 hours to attach labels). Staff believes that any additional burden associated with advertising disclosure requirements would be minimal (less than 10,000 hours) and can be subsumed within the burden estimates set forth above.

Estimated Annual Cost Burden: $16,380,000, rounded to the nearest thousand (solely relating to labor costs)

DATES: Comments must be received on or before March 19, 2018.

Friday, January 12, 2018

2017 Notorious Markets List Spotlights Global Piracy and Counterfeiting, Defends American Products and Workers

On January 12, 2018, United States Trade Representative Robert Lighthizer announced the findings of the 2017 Special 301 Out-of-Cycle Review of Notorious Markets, also known as the Notorious Markets List (List). The List highlights 25 online markets and 18 physical markets around the world that are reported to be engaging in and facilitating substantial copyright piracy and trademark counterfeiting.

This activity harms the American economy by undermining the innovation and intellectual property rights (IPR) of U.S. owners of IPR in foreign markets. Imports in counterfeit and pirated physical products is estimated at nearly half a trillion dollars, or around 2.5% of global imports.

The 2017 Notorious Markets List maintains its special focus on the distribution of pirated content and counterfeit goods online. This year, the report highlights illicit streaming devices as an emerging piracy model of growing concern. The report also calls on several e-commerce platforms to improve takedown procedures, proactive measures, and cooperation with right holders—particularly small and medium-sized businesses—to decrease the volume and prevalence of counterfeit and pirated goods on their platforms.

Over the past year, some market owners and operators have made efforts to address the widespread availability of pirated or counterfeit goods in their markets. Some governments also continue to institute novel strategies to combat piracy and counterfeiting. These strategies include: voluntary initiatives with advertising networks to cut off financial support for websites devoted to copyright infringement; installing intellectual property enforcement centers on-location in high-priority physical markets; and using skills training to reorient former counterfeit sellers towards operating legitimate businesses. At the same time, we vigilantly monitor marketplaces with a record of piracy and counterfeit goods.

USTR first identified notorious markets in the Special 301 Report in 2006. Since February 2011, USTR has published annually the Notorious Markets List separately from the Special 301 Report, pursuant to an “Out-of-Cycle Review of Notorious Markets,” to increase public awareness and help market operators and governments prioritize IPR enforcement efforts that protect American businesses and their workers.

The Out-of-Cycle Review of Notorious Markets identifies particularly notable online and physical markets that facilitate unfair competition with U.S. products. The report does not constitute an exhaustive list of all markets reported to deal in pirated or counterfeit goods around the world, nor does it reflect findings of legal violations or the U.S. Government’s analysis of the general IPR protection and enforcement climate in the country concerned. Such analysis is contained in the annual Special 301 Report issued at the end of April each year.

FTZ Board Re-Opens Comment Period in Polypropylene Yarn Case

On January 12, 2018 the Foreign Trade Zone Board published in the Federal Register (83 FR 1608) Foreign-Trade Zone 186--Waterville, Maine; Application for Production Authority; Flemish Master Weavers; Subzone 186A; Invitation for Public Comment on Additional Information

The FTZ Board is inviting public comment on a new submission by the City of Waterville, Maine, grantee of FTZ 186, containing additional information pertaining to the production application of Flemish Master Weavers (FMW). The application, which was subject to a public comment period through August 7, 2017, requests unrestricted authority for FMW to produce machine-made woven area rugs from foreign-status continuous filament polypropylene yarn within Subzone 186A at the FMW facility in Sanford, Maine. The new submission on which the FTZ Board is now inviting public comment includes additional information concerning the supply of domestically-produced continuous filament polypropylene yarn and additional HTSUS Subheadings to describe that yarn.

Public comment is invited from interested parties. The closing period for their receipt is February 12, 2018.

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can find the full history of the FMS filing at www.agathonassociates.com/textile-pri/ftz/2017-28-B.htm. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

Army Coat Contract Awarded

American Apparel Inc., Selma, Alabama, has been awarded a maximum $71,056,800 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for Army combat uniform coats. This is a one-year base contract with four one-year option periods. Maximum dollar amount is for the life of the contract. This was a competitive acquisition with 13 responses received. Location of performance is Alabama, with a Jan. 10, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-18-D-1020).

Thursday, January 11, 2018

James (Jim) C. Leonard III, 1939 - 2018

James (Jim) C. Leonard III passed away on December 25 after a short battle with pancreatic cancer.

Jim was born May 24, 1939 in Winston-Salem to James C. Leonard, Jr. and Ruby Hodges Leonard. He graduated from James A. Gray High School in 1957 and from NC State University in 1961. Upon graduation from NCSU, he was commissioned an officer in the Army Signal Corps. Jim and another lieutenant were selected to lead the advanced party to Thailand to work with and train the Thai army on the use of long-range communication equipment. After a year in Thailand, Jim rotated back to Fort Gordon and was released from the Army. He worked a year in the Washington, DC area before going back to graduate school at NCSU.

He graduated from NCSU with a master's degree in mathematics and accepted a position with Burlington Industries in Greensboro, NC. Jim worked for Burlington for 34 years in various positions and rose to be the manager of economic analysis and manager of Burlington's lobbying office in Washington, DC. For about 20 of those years, Jim was an advisor to the US Government, dealing with textile/apparel trade agreements with many foreign countries.

In 2001, Jim was asked to come to Washington as a government employee to run the committee he had been an advisor to for 20 years. He was then nominated by President George W. Bush to be deputy assistant secretary of commerce, having responsibility for textiles/apparel and all consumer goods. His last year in Washington, Jim was featured on the front page of the Wall Street Journal in a very favorable article with his level of responsibility at the US Department of Commerce. Jim felt his time in Washington made a difference.

After he returned home, he consulted for the College of Textiles at NCSU and the NC Department of Commerce. Jim was known as a "credible" person with only a hand shake needed to close a deal. He returned to NC at the birth of his first grandson. Family was so important to him that he did not want to miss a moment in the life of grandchildren.

He was active in his church. He especially enjoyed being a Stephen minister and was closely involved with several care receivers in recent years.

His great joy in later life was being able to visit and care for his two grandsons. Until the grandsons reached school age, he helped to provide daycare one day every week. His great sorrow was not being able to see them grow-up. His great hope was that he and CeCe have instilled in their two sons, as their parents instilled in their children, Christian values that will lead them through life.

Jim is survived by his wonderful wife of 50 years, Cecelia Fulmer Leonard; sons James IV (Courtney) of Raleigh and John (Caitlyn) of Raleigh; and grandsons James V and Benjamin; brothers Ralph (Lib) Leonard of Mocksville, Donald (Joanna) Leonard of Winston-Salem; sister Carol (Calvin) Cobb of Houston, Texas.

A memorial service will be at Jamestown United Methodist Church, 403 East Main Street, Jamestown, NC 27282 on January 13 at 11 a.m. The family will receive family and friends in the Fellowship Hall after the service. Memorials can be made to Jamestown United Methodist Church for the music program or Building a Firm Foundation; Hospice Home at Highpoint, 1803 Westchester Drive, High Point, NC 27262; or Jamestown Historical Society, 603 W. Main Street, Jamestown, NC 27282. (Affordable Cremations of Winston-Salem).

Monday is Martin Luther King, Jr. Day in the U.S.A.

Monday, January 15th, U.S. government offices, and much of private business other than retail, will close in observance of Martin Luther King, Jr. Day.

When President Ronald Reagan, on November 2, 1983, signed into law the Martin Luther King, Jr. holiday he reminded his listeners that—

Martin Luther King was born in 1929 in an America where, because of the color of their skin, nearly one in ten lived lives that were separate and unequal…taught in segregated schools…could find only poor jobs, toiling for low wages…refused entry into hotels and restaurants, made to use separate facilities. In a nation that proclaimed liberty and justice for all, too many black Americans were living with neither.

If we consider the time from the arrival of the first slaves in the Virginia Colony in 1619 to the achievement of full civil rights for all African-Americans in every one of the 50 states in the 1960s, it was a very long struggle to achieve full civil equality. The modern African-American Civil Rights Movement that Dr. King was so important a leader in, on the other hand, was, for a major societal and legal change, relatively swift. It is generally considered to occupy the period from 1955 (Rosa Parks and the Montgomery Bus Boycott) to 1968 (King assassination and the Poor People's March). To those in the struggle it was long. But looking back, from 1955 to 1983, not quite 30 years, is, roughly, a generation. In one generation we advanced from a nation that tolerated legal discrimination against part of our citizenry based on the color of their skin, to a nation in which such as thing is not only forbidden, but absolutely unthinkable. It was Dr. King, more than any other single leader in the civil rights movement, who, with his insistence on non-violence, and his prophet-like call to the conscience of White American, who brought about such a marvelous and much needed change. That is why he is up there with Columbus and Washington as one of just three men who so influenced our nation that we honor them with a federal holiday.

President Reagan went on to remark that "Dr. King had awakened something strong and true, a sense that true justice must be colorblind." And Mr. Reagan pointed to both the progress made—and yet to be made—in the struggle for an America that lives up to her noble sentiment that all men are created equal, citing the passage of the Civil Rights Act of 1964 and Voting Rights Act of 1965. Reagan, as he so often did, then called on Americans to embrace and enlarge upon their better nature, and exhorted his listeners—

But most important, there was not just a change of law; there was a change of heart. The conscience of America had been touched. Across the land, people had begun to treat each other not as blacks and whites, but as fellow Americans.

Traces of bigotry still mar America. So, each year on Martin Luther King Day, let us not only recall Dr. King, but rededicate ourselves to the Commandments he believed in and sought to live every day: Thou shall love thy God with all thy heart, and thou shall love thy neighbor as thyself. And I just have to believe that all of us —- if all of us, young and old, Republicans and Democrats, do all we can to live up to those Commandments, then we will see the day when Dr. King's dream comes true.

USTR Robert Lighthizer Statement on the Canadian WTO Challenge to Trade Remedies

On January 10, 2018, U.S. Trade Representative Robert Lighthizer issued the following statement in regard to the case filed by Canada with the World Trade Organization (WTO) against U.S. disciplinary practices and procedures:

“Canada’s new request for consultations at the WTO is a broad and ill-advised attack on the U.S. trade remedies system. U.S. trade remedies ensure that trade is fair by counteracting dumping or subsidies that are injuring U.S. workers, farmers, and manufacturers. Canada’s claims are unfounded and could only lower U.S. confidence that Canada is committed to mutually beneficial trade.

“Canada is acting against its own workers’ and businesses’ interests. Even if Canada succeeded on these groundless claims, other countries would primarily benefit, not Canada. For example, if the U.S. removed the orders listed in Canada’s complaint, the flood of imports from China and other countries would negatively impact billions of dollars in Canadian exports to the United States, including nearly $9 billion in exports of steel and aluminum products and more than $2.5 billion in exports of wood and paper products. Canada’s claims threaten the ability of all countries to defend their workers against unfair trade. Canada’s complaint is bad for Canada.”

Nominations for the Trade Advisory Committee on Africa

The Office of the United States Trade Representative (USTR) is establishing a new four-year charter term and accepting applications from qualified individuals interested in serving as a member of the Trade Advisory Committee on Africa (TACA). The TACA is a trade advisory committee that provides general policy advice and guidance to the United States Trade Representative on trade policy and development matters that have a significant impact on the countries of sub-Saharan Africa.

DATES: USTR will accept nominations on a rolling basis for membership on the TACA for the four-year charter term beginning in March 2018. To ensure consideration before the new charter term, you should submit you application by February 2, 2018.

The TACA is a discretionary trade advisory committee established to provide general policy advice to the United States Trade Representative on trade policy and development matters that have a significant impact on the countries of sub-Saharan Africa. More specifically, the TACA provides general policy advice on issues that may affect the countries of sub-Saharan Africa including: (1) Negotiating objectives and bargaining positions before entering into trade agreements; (2) the impact of the implementation of trade agreements; (3) matters concerning the operation of any trade agreement once entered into; and (4) other matters arising in connection with the development, implementation, and administration of the trade policy of the United States. The TACA also facilitates the goals and objectives of the African Growth and Opportunity Act (AGOA) and assists in maintaining ongoing discussions with sub-Saharan African trade and agriculture ministries and private sector organizations on issues of mutual concern, including regional and international trade concerns and World Trade Organization issues.

The TACA meets as needed, at the call of the United States Trade Representative or his/her designee, or two-thirds of the TACA members, depending on various factors such as the level of activity of trade negotiations and the needs of the United States Trade Representative.

The TACA is composed of not more than 30 members who have expertise in general trade, investment and development issues and specific knowledge of United States-Africa trade and investment trends including trade under the AGOA; constraints to trade and investment (including infrastructure, energy and financing); trade facilitation measures; sanitary and phyto-sanitary measures and technicalbarriers to trade; trade capacity building; investment treaty negotiations; United States-Africa investment and private sector partnerships; and implementation of World Trade Organization agreements. Members may represent industry, organized labor, investment, agriculture, services, non-profit development organizations, academia, and small business.

The United States Trade Representative appoints all TACA members for a term of four-years or until the TACA charter expires, and they serve at his/her discretion. Individuals can be reappointed for any number of terms. The United States Trade Representative makes appointments without regard to political affiliation and with an interest in ensuring balance in terms of sectors, demographics, and other factors relevant to the USTR's needs. Insofar as practicable, TACA membership will reflect regional diversity and be broadly representative of key sectors and groups of the economy with an interest in trade and sub-Saharan Africa issues, including U.S. citizens who are diaspora African and U.S. citizens of African descent with requisite knowledge and experience.

TACA members serve without either compensation or reimbursement of expenses. Members are responsible for all expenses they incur to attend meetings or otherwise participate in TACA activities.

USTR is soliciting nominations for membership on the TACA. To apply for membership, an applicant must meet the following eligibility criteria:

1. The applicant must be a U.S. citizen.

2. The applicant cannot be a full-time employee of a U.S. governmental entity.

3. If serving in an individual capacity as an SGE, the applicant cannot be a federally registered lobbyist.

4. The applicant cannot be registered with the U.S. Department of Justice under the Foreign Agents Registration Act.

5. The applicant must be able to obtain and maintain a security clearance.

6. For representative members, who will comprise the overwhelming majority of the TACA, the applicant must represent a U.S. organization whose members (or funders) have a demonstrated interest in issues relevant to U.S. African trade and investment or have personal experience or expertise in United States-sub-Saharan African trade.

For eligibility purposes, a ``U.S. organization'' is an organization established under the laws of the United States, that is controlled by U.S. citizens, by another U.S. organization (or organizations), or by a U.S. entity (or entities), determined based on its board of directors (or comparable governing body), membership, and funding sources, as applicable. To qualify as a U.S. organization, more than 50 percent of the board of directors (or comparable governing body) and more than 50 percent of the membership of the organization to be represented must be U.S. citizens, U.S. organizations, or U.S. entities. Additionally, at least 50 percent of the organization's annual revenue must be attributable to nongovernmental U.S. sources.

7. For members who will serve in an individual capacity, the applicant must possess subject matter expertise regarding sub-Saharan Africa trade issues.

Tuesday, January 9, 2018

New AATCC Executive Vice President

On November 16, 2017, the AATCC Board of Directors met and approved the hiring of Brian C. Francois as the new AATCC executive vice president to succeed Jack Daniels upon the latter’s retirement in March 2018.

Francois is currently the CEO of the Pulcra Chemicals Group (formerly Cognis Corporation and Henkel Textile Technology). He has had a successful career in leadership positions for his current company, which he joined in 1992, as Senior Sales Representative.

As Technical Manager, Francois teamed with chemists to set targets for developing new chemicals and received six patents for innovation in textile chemistry in a two-year period. From 2001 to 2005, Francois expertly managed global sales, marketing, and product development teams in four countries as Global Business Manager—Active Textiles. In this role, he grew sales by $5M in three years. Francois was named Business Director, Textile Technology in 2005 and fostered relationships with affiliates and customers in Europe and Asia. He also led employees in US, Mexico, and distributors in Canada.

In 2009, Francois became President—US Business and oversaw the relocation of US business into new facilities with growth of 100% over five years. He became Vice President—Americas in 2011, and Global CEO in 2014. He was responsible for leading the reorganization of Brazilian operations and more recently a management team with new company core value and corporate vision. He established global integration and core management systems that improved employee satisfaction and increased productivity.

His knowledge of the consumer apparel end-use market, global textile industry, and experience in expanding businesses into new geographical areas will be a great benefit to AATCC. Francois has been an active member of AATCC for more than 25 years, and served for several years as chair of the Committee on Conferences, and as chair of the Olney Awards Committee. He was a voting member of the Wet Processing Machinery Committee and currently is a non-voting member of the Preparation Test Methods Committee. He also served on the Awards Oversight Committee.

Francois and his wife, Julie, plan to attend the 2018 International Conference in Greenville, SC, USA on March 6-8, 2018, to meet the AATCC members in attendance. Francois will start as the new AATCC Executive Vice President on April 2, 2018.

About AATCC: AATCC is the world’s leading not-for-profit association serving textile professionals since 1921. AATCC, headquartered in Research Triangle Park, NC, USA, provides test method development, quality control materials, and professional networking for members in about 50 countries throughout the world.

AATCC Foundation Announces Scholarships and Fellowships for 2018

If you are a student taking courses or pursuing a degree in textiles, funding is available. For more information, see the AATCC Foundation website.

Army Boot Contract Awarded

McRae Industries Inc., Mt. Gilead, North Carolina, has been awarded a maximum $9,716,250 modification (P00012) exercising the third one-year option period of one-year base contract (SPE1C1-15-D-1023) with four one-year option periods for hot-weather, flame-resistant combat boots. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is North Carolina, with a Jan. 8, 2019, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

U.S. Textile Industry Comments on Moroccan Short Supply Requests

In October, 2017, the Government of Morocco requested consultation with the United States regarding the rules of origin for certain appear articles. The request, if accepted would place certain woven wool fabric and a variety of knit fabrics on the "short supply list."

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:

Sunday, January 7, 2018

Statement on the Conclusion of Meeting on the U.S.-Korea (KORUS) FTA

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.

Friday, January 5, 2018

Agathon Associates Comments on a Commercial Availability Request Under the U.S.-Morocco Free Trade Agreement

Today Agathon Associates filed the following comments with the Committee for the Implementation of Textile Agreements.

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

Media accreditation for round six of NAFTA renegotiations

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.

Wednesday, January 3, 2018

Morocco Short Supply Responses Due Friday, January 5th

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.

Statement by the Minister of Foreign Affairs on final U.S. duties on Canadian softwood lumber

The Honourable Chrystia Freeland, Minister of Foreign Affairs, issued the following statement regarding the imposition today by the United States of final countervailing and anti-dumping duties on imports of certain Canadian softwood lumber products:

“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.”

Comfort Research Recalls Bean Bag Chair Covers Due to Risks of Entrapment, Suffocation to Children

Recall Details

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