TPP agreement rules of origin or weaken US textile profits

　　The Trans-Pacific Partnership Agreement (TPP) is one of the hot topics in the textile industry in the near future, and its signature may have a major impact on the US textile industry. The agreement includes the United States and its ten trading partners Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. According to the agreement, these countries will enjoy tax-free treatment for goods exported to the United States.

　　One of the biggest impacts on the US textile industry is a new rule of origin proposed by Vietnam. If this new regulation is added to the agreement, then the existing Yarn-forward origin policy in the United States will be void. According to the current policy, the entire manufacturing process from yarn to fabric to garment must be completed in the same country to determine that the country is the country of origin of the garment. However, according to the new regulations, Vietnamese-made garments can use fabrics imported from China and are tax-free into the US market after being processed into garments in the country. This is not allowed in all existing agreements between the United States and other countries. The new rules may also anger the members of the Central American Free Trade Agreement, because according to the requirements of existing agreements, these countries must purchase American-made yarns in order to comply with the rules of origin.

　　According to the US Capitol Hill newspaper, 167 legislators in the House of Representatives recently expressed their concern about the position adopted by the Vietnamese government in the textile industry negotiations, fearing that this new regulation may have a huge negative impact on the US mainland and its export partners. .

　　From the actual situation, if the new rules are implemented, the textile industry that is recovering in the United States will be greatly affected. Wal-Mart recently promised to buy more American-made textiles; the domestic textile industry's investment and equipment modernization has also increased significantly; several trading partners in El Salvador are also specializing in high-end sportswear based on artificial yarns in their country. Investment in product supply chain solutions requires a lot of courage to invest in such a special industry in a small country like El Salvador. However, if the new TPP agreement proposed by Vietnam is passed, it is conceivable that the influx of Vietnamese textiles into the US market will have a huge negative impact on these investments.

　　The nine Pacific Rim countries that formally participate in the TPP multilateral agreement include: the United States, Vietnam, Australia, Brunei, Chile, Malaysia, New Zealand, Peru and Singapore; and in addition to these nine countries, there are other countries that have expanded to join the TPP. s plan.

　　TPP is not the first regional trade agreement for the United States in Asia, but once TPP is officially in force, it will create one of the world's most important trading groups.

　　The US textile industry believes that the inclusion of Vietnam in the TPP will be a unique challenge, as Vietnam is the second largest supplier of textile and apparel products to the United States after China's mainland. The annual export value reached US$6.3 billion. In recent years, Vietnam has expanded to industrial scale. Use cloth and other high-end textile fields.

　　The parliamentarians said that like its neighboring mainland China, Vietnam has a large state-owned and subsidized textile industry, undervalued currency, weak environmental protection measures, and loose enforcement of intellectual property rights. In addition, Vietnam relies on mainland China to import most of its yarns and fabrics. In 2009, imports of textile materials from mainland China amounted to US$2.2 billion. This situation has raised concerns about limited export opportunities for US yarn and fabric manufacturers.

　　The US textile industry is operating to obtain the right to negotiate the TPP content, especially in terms of rules of origin.

　　So far, the textile and apparel industry has been treated as an independent chapter under the US Free Trade Agreement. The letter pointed out that the textile and apparel industry accounts for more than one-third of bilateral trade between the United States and Vietnam, and that it has more unique sensitivities than all other industries, making complex phenomena appear in US trade policy. Textile and apparel products are not suitable for the rules of the standard with other products.