Thursday, November 9, 2017

Media registration for NAFTA renegotiations: Round five in Mexico

The fifth round of NAFTA renegotiations will be held in Mexico City, Mexico, from November 17 to 21, 2017. The Mexican government has invited media to register, as per the information provided below.

Members of the media must register before 8:00 p.m. (Mexico City time) on Tuesday, November 14, 2017, at TLCAN/NAFTA (available in English or Spanish only).

Learn More About NAFTA

Agathon Associates has prepared a History and Analysis of the NAFTA renegotiation to assist clients. To access the page you will need your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

Wednesday, November 8, 2017

OshKosh Recalls Baby B’gosh Quilted Jacket Due to Choking Hazard

This recall involves OshKosh Baby B’gosh quilted jackets in pink and gray.  The style number can be found on the front of the care tag sewn on the inside of the product, and the UPC number can be found on the back of the same care tag.  The style number and UPC number can also be found on the price tag.  Only jackets with the following style numbers and UPC codes are included in the recall:

Color

Style Numbers

Size

UPC Codes

Pink

13003910

0-3M

190795946918

6M

190795946956

9M

190795946963

12M

190795946925

18M

190795946932

24M

190795946949

23003910

2T

190795946062

3T

190795946079

4T

190795946086

5T

190795946093

Gray

12691410

0-3M

190795930399

12M

190795930405

18M

190795930412

24M

190795930429

6M

190795930436

9M

190795930443

22691410

2T

190795919660

3T

190795919677

4T

190795919684

5T

190795919691

 
 
Remedy:

Consumers should immediately take the recalled jackets away from children and return them to any OshKosh or Carter’s store or contact OshKosh for a full refund in the form of a $34 gift card (for an infant size) or $36 gift card (for a toddler size).

Incidents/Injuries:

OshKosh received three reports of a snap detaching, including one report of a child putting a detached snap in her mouth.

Sold At:

OshKosh, Bon-Ton, Kohl’s, Fred Meyer and other retail and department stores nationwide, and online at www.oshkosh.com between August 2017 and September 2017 for between $35 and $40.”

Importer(s):

OshKosh B’gosh Inc., Atlanta, Georgia

Manufactured In:
Indonesia
Units:
About 38,000 (in addition, about 5,000 were sold in Canada).

Morocco Knit Fabric Short Supply Request List

On Monday we REPORTED on a request from the Government of Morocco to have several knit fabrics added to the short supply list. The list includes a wide range of circular knits, warp knits, stretch knits, and fleece.

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.

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. To access the file you will need your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

UNDERSTANDING THE RISKS & OPPORTUNITIES OF THE NAFTA RENEGOTIATION

N’WARE TECHNOLOGIES PRESENTS: UNDERSTANDING THE RISKS & OPPORTUNITIES OF THE NAFTA RENEGOTIATION

SPEAKERS: David Trumbull and Glenn Page

NASHUA, NH – 7:00 AM, November 30, 2017

PORTSMOUTH, NH – 12:00 PM, December 7, 2017

PORTLAND, ME – 12:00 PM, December 12, 2017

Come and learn international trade strategies and how you could benefit from the NAFTA renegotiation with our panel of experts. For more information call 1-800-270-9420 or email sajacques@nwaretech.com.

Congressional Research Service Report on NAFTA and Textiles and Apparel

On October 30, 2017, the Congressional Research Service issued "Renegotiating NAFTA and U.S. Textile Manufacturing" (R44998), according to the report:

"When the North American Free Trade Agreement (NAFTA) was negotiated more than two decades ago, textiles and apparel were among the industrial sectors most sensitive to the agreement’s terms. NAFTA, which was implemented on January 1, 1994, has encouraged the integration of textile and apparel production in the United States, Canada, and Mexico. For example, under NAFTA’s “yarn-forward” rule of origin, textiles and apparel benefit from tariff-free treatment in all three countries if the production of yarn, fabric, and apparel, with some exceptions, is done within North America.

"The United States maintains a bilateral trade surplus in yarns and fabrics with its NAFTA partners. In 2016, the United States had a $4.1 billion surplus in yarns and fabrics and a positive balance of around $720 million in made-up textile products (such as home textiles and furnishings) with Canada and Mexico. U.S. exports of yarns and fabrics shipped to Mexico and Canada were valued at close to $6 billion last year. In apparel, the United States had a trade surplus with Canada of $1.4 billion and a trade deficit with Mexico of $2.7 billion in 2016.

On May 18, 2017, the Trump Administration notified Congress of its intent to renegotiate the agreement. In July 2017, the Administration announced specific goals for textiles and apparel among its renegotiating objectives, which include improving competitive opportunities for U.S. textile and apparel products, but also taking into account U.S. import sensitivities. Also germane to textiles and apparel are several other renegotiating objectives, such as enhancing customs enforcement to prevent unlawful transshipment of these goods from outside the region and ensuring that requirements for use of domestic textiles and apparel in U.S. government purchases primarily benefit producers located in the United States.

"NAFTA renegotiation started in August 2017. There is widespread support for continuation of the agreement among U.S. textile and apparel producers, although there are significant differences of opinion with respect to certain provisions. In particular, U.S. textile manufacturers generally favor eliminating all exceptions to NAFTA’s yarn-forward rule, whereas U.S. retailers and apparel groups oppose tightening the rule.

If the United States were to exit NAFTA, imports of textiles from Mexico and Canada would face U.S. tariffs as high as 20%, and imports of apparel would have tariff rates of up to 32%. U.S. exports of textiles and apparel could face higher tariff rates entering Canada and Mexico. One possibility is that U.S. withdrawal from NAFTA could lead U.S. retailers and apparel brands to source more of their goods from Asia, which could reduce demand for U.S.-made yarns and fabrics within the NAFTA region."

U.S. Government Offices to Close Friday, November 10th for Veterans Day

Saturday, November 11, 2017, is Veterans Day, a federal holiday in the United States. Because the holiday falls on the weekend, national, state, and local government offices will be closed in commemoration on FRIDAY, NOVEMBER 10th. Most businesses will be open.

Q. Which is the correct spelling of Veterans Day?
a. Veterans Day
b. Veteran's Day
c. Veterans' Day

A. Veterans Day (choice a, above). Veterans Day does not include an apostrophe but does include an "s" at the end of "veterans" because it is not a day that "belongs" to veterans, it is a day for honoring all veterans.

Q. On what day of the week will Veterans Day be observed?

A. Veterans Day is always observed officially on November 11, regardless of the day of the week on which it falls. The Veterans Day National Ceremony, like most ceremonies around the nation, is held on Veterans Day itself. However, when Veterans Day falls on a weekday, many communities choose to hold Veterans Day parades or other celebrations on the weekend before or after November 11 so that more people can participate.

Q. What is the difference between Veterans Day and Memorial Day?

A. Many people confuse Memorial Day and Veterans Day. Memorial Day is a day for remembering and honoring military personnel who died in the service of their country, particularly those who died in battle or as a result of wounds sustained in battle. While those who died are also remembered, Veterans Day is the day set aside to thank and honor ALL those who served honorably in the military - in wartime or peacetime. In fact, Veterans Day is largely intended to thank LIVING veterans for their service, to acknowledge that their contributions to our national security are appreciated, and to underscore the fact that all those who served - not only those who died - have sacrificed and done their duty.

Q. Why are red poppies worn on Veterans Day, and where can I obtain them?

A. The wearing of poppies in honor of America's war dead is traditionally done on Memorial Day, not Veterans Day. For information on how to obtain poppies for use on Memorial Day, contact a veterans service organization, such as the Veterans of Foreign Wars of the United States (VFW) or The American Legion, as a number of veterans organizations distribute poppies annually on Memorial Day.

Monday, November 6, 2017

In Outrageous Move that May Harm U.S.-Moroccan Relations, Morocco Claims There is no Woven Wool Fabric or Knit Fabric of Any Kind Made in the U.S., and Seeks Short Supply Designation

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.

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 showed no comments received in opposition to the woven wool request.