USITC Releases Report on Apparel Export Competitiveness of Certain Suppliers to The United States

On September 30, 2024, the U.S. International Trade Commission released Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States.

Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States

On January 19, 2024, the International Trade Commission published in the Federal Register (89 FR 3692) Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States.

Following receipt on December 20, 2023, of a request from the U.S. Trade Representative (the Trade Representative), under section 332(g) of the Tariff Act of 1930, the U.S. International Trade Commission (Commission) instituted Investigation No. 332–602, Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States. The Trade Representative requested that the Commission conduct an investigation and prepare a report that examines the export competitiveness of the apparel industries in Bangladesh, Cambodia, India, Indonesia, and Pakistan, all of which are current leading suppliers to the U.S. market.

Business Advisory and GSP Assessment for Cambodia

The United States has a long history of commitment to combatting corruption and supporting the rule of law in Cambodia and globally. Recent developments in Cambodia, including systemic corruption, transnational organized crime, and human rights abuses, threaten both U.S. national security interests and the fundamental freedoms of people in Cambodia. U.S. officials have regularly raised these concerns with Cambodia’s leaders, but regrettably there have been no meaningful changes.

On November 10, 2021, the U.S. Department of State, the U.S. Department of the Treasury, and the U.S. Department of Commerce have jointly issued a business advisory to caution U.S. businesses currently operating in, or considering operating in, Cambodia to be mindful of interactions with entities involved in corrupt business practices, criminal activities, and human rights abuses. This advisory addresses two primary areas of exposure for U.S. companies in Cambodia:

• Illicit financial activities and related risks in the financial, real estate, casino, and infrastructure sectors; and
• Entanglements with Cambodian entities involved in trafficking in persons, wildlife and narcotics trafficking, and related risks in some areas of the manufacturing and timber sectors.

Businesses should apply appropriate due diligence to mitigate the reputational, economic, and possible legal risks associated with potential exposure to entities in Cambodia that engage in corruption, criminal activities, illicit financial activities, or human rights abuses.

Additionally, the United States Trade Representative will conduct an assessment of Cambodia’s Generalized System of Preferences (GSP) eligibility as part of a broader GSP evaluation. This assessment will be conducted following reauthorization of the program benefits and will include any new or amended eligibility criteria established by Congress.

The United States will continue to promote accountability for criminal activities, corrupt business practices, and human rights abuses through a whole-of-government effort and in close coordination with the private sector and our allies and partners.

Read the full business advisory here: https://www.state.gov/cambodia-business-advisory-on-high-risk-investments-and-interactions/.