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The United States Fashion Industry Association is testifying in a case to stop new tariff regulations.
President of the association, Julia Hughes has testified Nov. 16 in Washington D.C. for the Office of U.S. Trade Representative’s hearing, Impact of the U.S.-Mexico-Canada Agreement on U.S. Economy, Consumers and Fashion Industry. The testimony stresses the increase of expenses the new tariffs will create for American fashion companies.
US fashion industry
The association is highlighting the importance of trade between the U.S., Canada and Mexico for the fashion industry.
“The new regulations will make it more expensive and complicated for American brands and retailers to use the agreement,” Ms. Hughes said in a statement in regards to her testimony. “That is not an assumption, that is what companies tell us.
“So, complicated rules of origin and heavy documentation requirements mean we have a missed opportunity — for American companies as well as for our trading partners Canada and Mexico,” she said. “Let’s be honest, if the Administration wants to encourage companies to move their sourcing out of China, it would make sense to make it easier to do business with America’s closest neighbors.”
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The United States and Mexico agreed to amend the North American Free Trade Agreement this past August, coming to a preliminary agreement after more than a year of negotiations.
Canada, the third party in the original NAFTA deal, had not yet agreed to new terms set by this revised version of the agreement, which President Trump intends to call the United States Mexico Trade Agreement. The updated trade deal includes new rules for automakers, including raising the portion of cars that need to be built in the North American region (see story).