Apparel

The U.S. International Trade Commission (USITC) today released a report about the export competitiveness of certain apparel suppliers to the United States. This report, Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States (Inv. No. 332-602), was requested by the U.S. Trade Representative in a letter received on December 20, 2023.

The USITC, an independent, nonpartisan federal agency, examined the export competitiveness of the apparel industries in Bangladesh, Cambodia, India, Indonesia, and Pakistan, and prepared a public report that includes:

• a comparison of the relative U.S. market shares held by Bangladesh, Cambodia, India, Indonesia, and Pakistan, as well as an analysis of changing patterns in apparel trade;
• a review of general literature on the key determinants driving export competitiveness in the global apparel industry; 
• a discussion of factors affecting export competitiveness in the apparel sector; and
• country-specific profiles of the apparel industries in the above-listed countries, including information on investment, vertical integration, duty-free access to the U.S. market, wages and labor productivity, and sourcing of inputs, as well as an assessment of the export competitiveness of each country in the U.S. market.

Key findings:

• The United States is the largest single-country apparel importer in the world. In 2023, U.S. imports of apparel totaled $79.3 billion, with the majority sourced from Asia. 
• Bangladesh, Cambodia, India, Indonesia, and Pakistan are notable suppliers to the United States—ranking among the top 10 U.S. import suppliers in 2023—and are also significant exporters in the global market. These five countries accounted for a combined 27.0 percent of U.S. apparel imports in 2023.
• The market shares of major U.S. suppliers changed significantly during 2013–23. The share of imports from China, the largest exporter to the United States, fell during the period, while the market shares of other top suppliers such as Vietnam, Bangladesh, Cambodia, and Pakistan increased.
• Although Bangladesh, Cambodia, India, Indonesia, and Pakistan differ with respect to the factors of competitiveness that make them attractive to U.S. brands and retailers, they share certain similarities and are all reportedly competitive on sourcing costs. Additional key highlights concerning the five profiled countries are as follows: 
  • As the second-largest apparel exporter in the world, Bangladesh has extensive capabilities in apparel manufacturing and specializes in bulk orders of basic garments. Factors such as low labor costs, relatively low input costs, and duty-free access to large destination markets outside of the United States contribute to Bangladesh’s cost competitiveness.
  • Foreign direct investment drives Cambodia’s export-oriented apparel industry with Cambodia focused on cut, make, and trim production using imports of upstream materials. Cambodia’s apparel industry is viewed as an attractive alternative to sourcing from China and its reputation for social responsibility contributes to its competitiveness.
  • India has a long history in textiles and apparel production and remains a steady source of U.S. imports. Quality and detailed finishing contribute to the competitiveness of India’s apparel production, which is supported by a highly vertically integrated apparel industry.
  • A major supplier of a wide variety of clothing, Indonesia exports the majority of its apparel to the United States. While it is a relatively high-cost source, Indonesia produces high-value, complex garments such as business attire, outdoor apparel, and athletic wear which contributes to its competitiveness.
  • Pakistan’s cotton sector supports the country’s apparel industry, which is noted for production of high-quality denim. Vertical integration and access to domestic cotton are competitive strengths, but buyers cite geopolitical risk as a concern.

Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States (Inv. No. 332-602, USITC Publication 5543, August 2024) is available on the USITC website at: https://www.usitc.gov/publications/332/pub5543.pdf. 

About factfinding investigations: USITC general factfinding investigations, such as this one, cover matters related to tariffs, trade, and competitiveness and are generally conducted under section 332(g) of the Tariff Act of 1930 at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission’s objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public unless they are classified by the requester for national security reasons.

• Haiti experienced a surge in foreign direct investment (FDI) following the implementation of the Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE I) in 2006, HOPE II in 2008, and the Haiti Economic Lift Program Act (HELP) in 2010. Haiti’s FDI stock grew rapidly during this time, about 17 percent per year, from $300 million in 2006 to $1.74 billion in 2017. However, political instability, insecurity due to increased gang activity, and disruptions due to the COVID-19 pandemic have all contributed to an investment slowdown.
• U.S. imports from Haiti generally increased after the implementation of each U.S. preference program from 1980 to 2021. U.S. apparel imports from Haiti quadrupled after the Caribbean Basin Trade Partnership Act (CBTPA) and HOPE I/HOPE II/HELP programs went into effect, increasing from $231 million in 2001 to $994 million in 2021, with T-shirts accounting for a large proportion of the increase. In 2021, 23.6 percent of total imports ($260.4 million) entered the United States under the CBTPA program and 67.9 percent ($751.3 million) under the HOPE I/HOPE II/HELP program.
• Apparel employment fell sharply in the 1990s as a result of the trade embargo imposed in 1991. Apparel employment partially recovered after implementation of the HOPE I/HOPE II/HELP Acts. As of 2021, the garment industry is once again one of the largest sources of formal employment, providing 53,000–57,000 jobs and supporting more than 450,000 people in the country.
• An analysis of Better Work Haiti compliance assessments since 2009 shows low levels of noncompliance with International Labour Organization core labor standards (forced labor, child labor, freedom of association, collective bargaining, and gender discrimination) but generally high levels of noncompliance with respect to compensation and safety-related metrics. Union representatives and NGOs have indicated that labor issues persist.

However, USITC Notifies USTR That Two Domestic Producers Filed Objections

Proposed modifications to the United States-Korea Free Trade Agreement (KORUS) rules of origin are likely to have a negligible effect on U.S. imports and U.S. exports, but they could impact the U.S. industry that produces some of the affected articles, reports the United States International Trade Commission (USITC) in its publication U.S.-Korea FTA: Advice on Modifications to Certain Textile and Apparel Rules of Origin.

The USITC, an independent, nonpartisan, factfinding federal agency, produced the report at the request of the U.S. Trade Representative (USTR).

As requested, the report provides advice on the probable economic effect of the proposed modifications to the U.S.-Korea FTA rules of origin on U.S. trade under the agreement, on total U.S. trade, and on domestic production of the affected articles. The proposed modifications, detailed in the USTR's request letter, cover the following of headings of the Harmonized Tariff Schedule of the United States (HTS):

• Certain cotton yarns (under HTS heading 5206) with viscose rayon staple fibers (under HTS subheadings 5504.10 or 5507.00);


• Certain woven fabrics (under HTS heading 5408) with cuprammonium rayon yarns (under HTS subheading 5403.39); and


• Certain apparel (under HTS heading 6110), accessories, and apparel parts (under HTS heading 6117) of cashmere yarns (under HTS heading 5108).

Each of the proposed modifications to the rules of origin would liberalize the current rules of origin by allowing the use of more non-originating materials. However, because U.S. imports from Korea are a small portion of total U.S imports of the affected articles, and because Korea is not a major producer of the affected articles, the likely effect of the proposed modifications on imports under KORUS and on total U.S. imports of these products is negligible.

Similarly, because the United States exported little to none (both in terms of value and as a share of total U.S. exports of these products) of the affected articles to Korea in 2018, the likely effect of the proposed modification on exports under KORUS and on total U.S. exports would be negligible as well.

The Commission received two objections from domestic producers of two of the articles affected by the proposed modification. One domestic producer of cotton yarns with viscose rayon staple fibers objected to the first of the proposed modifications as they produce the end-use product covered by that modification. Another domestic producer of cashmere yarns objected to the third modification as they produce the input covered by that modification.

U.S.-Korea FTA: Advice on Modifications to Certain Textile and Apparel Rules of Origin (Inv. No. FTA-103-032, USITC publication 4917, June 2019) is available at https://www.usitc.gov/sites/default/files/publications/tariff_affairs/pub4917.pdf

The U.S. International Trade Commission (USITC) today released its annual compilation of reports published every two weeks on textile and apparel imports from China.

The report, Textile and Apparel Imports from China: Statistical Reports, Annual Compilation 2018, was requested by the U.S. House of Representatives' Committee on Ways and Means.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, produced an annual compilation of data that has been posted on a bi-weekly basis on the USITC website. The data in the report are shown on an annual and quarterly basis, by category and by Harmonized Tariff Schedule 10-digit statistical reporting number (HTS10).

By category, annual data are provided from 2012 through 2018, and quarterly data are provided from first quarter 2017 through fourth quarter 2018. By HTS10, annual data are provided from 2016 through 2018, and quarterly data are provided from first quarter 2017 through fourth quarter 2018.

The report will be available on the USITC Internet site at https://www.usitc.gov/sites/default/files/publications/332/pub4916.pdf.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public unless they are classified by the requester for national security reasons.

Nine years after its implementation, the Earned Import Allowance Program (EIAP) is not providing enough incentives to significantly boost Dominican apparel exports to the U.S. market, as intended, reports the U.S. International Trade Commission (USITC) in its publication Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Ninth Annual Review.

The EIAP allows apparel manufacturers in the Dominican Republic who use U.S. fabric to produce certain apparel to earn a credit that can be used to ship eligible apparel made with non-U.S.-produced fabric into the United States duty free. The Dominican Republic-Central America-United States Free Trade Agreement Implementation Act, as amended, requires the USITC, an independent, nonpartisan, factfinding federal agency, to evaluate annually the effectiveness of the EIAP program and make recommendations for improvements.

The USITC's ninth annual review was submitted to the U.S. House of Representatives Committee on Ways and Means and the U.S. Senate Committee on Finance on August 3, 2018.  Highlights of the report follow.

• Of the 13 registered firms, only 4 firms are currently using the program – one less than was reported in the last three annual reviews.

• In 2017, U.S. imports of woven cotton bottoms from the Dominican Republic fell 57 percent by value (from $3.5 million in 2016 to $1.5 million) and 80 percent by quantity (from 745,000 SMEs in 2016 to 154,000 SMEs). U.S. government sources and a former user of the program in the Dominican Republic attributed the decline in U.S. imports under the EIAP to increased imports from Haiti and increased competition from other Western Hemisphere suppliers. Haiti offers lower labor costs and trade preferences under the HOPE/HELP programs, which provide more sourcing flexibility and coverage for a wider range of products than the EIAP, as well as a tariff preference level (TPL) for woven apparel from Haiti that allows the use of third-country fabric up to a specified level.  Also, the decline in U.S. imports under the EIAP likely reflects a significant decline in woven trouser manufacturing capacity in the Dominican Republic, along with a simultaneous shift by U.S. importers to Asian suppliers during the life of the program. Finally, uncertainty surrounding the program's renewal after its expiration on December 1, 2018, may also explain why U.S. imports of woven cotton bottoms under the program reached their lowest level in 2017.

• The recommendations offered during the ninth annual review of the EIAP were virtually the same as those received by the Commission during the previous eighth annual reviews:  1) lowering the 2-for-1 ratio of U.S. to foreign fabric to a 1-for-1 ratio; 2) expanding the program coverage to enable other types of fabrics and apparel items to be included in the EIAP; and 3) changing the requirement that dyeing and finishing of eligible fabrics occur in the United States. 

Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Ninth Annual Review (Inv. No. 332-503, USITC Publication 4809, August 2018) is available on the USITC's Internet site at https://www.usitc.gov/publications/332/pub4809.pdf. 

USITC general factfinding investigations, such as this, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, and the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subject investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigations reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

The U.S. International Trade Commission (USITC) today released its annual compilation of reports published every two weeks on textile and apparel imports from China.

The report, Textile and Apparel Imports from China: Statistical Reports, Annual Compilation 2017, was requested by the U.S. House of Representatives' Committee on Ways and Means.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, produced an annual compilation of data that has been posted on a bi-weekly basis on the USITC website. The data in the report are shown on an annual and quarterly basis, by category and by Harmonized Tariff Schedule (HTS) 10-digit subheadings.

By category, annual data are provided from 2011 through 2017, and quarterly data are provided from first quarter 2016 through fourth quarter 2017. By HTS10 subheading, annual data are provided from 2015 through 2017, and quarterly data are provided from first quarter 2016 through fourth quarter 2017.

The report also will be available on the USITC Internet site in Excel and PDF formats at https://www.usitc.gov/research_and_analysis/what_we_are_working_on.htm (scroll down to the bottom of the page).

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public unless they are classified by the requester for national security reasons.

The U.S. International Trade Commission (USITC) today released its annual compilation of reports published every two weeks on textile and apparel imports from China.

The report, Textile and Apparel Imports from China: Statistical Reports, Annual Compilation 2016, was requested by the U.S. House of Representatives' Committee on Ways and Means.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, produced an annual compilation of data that has been posted on a bi-weekly basis on the USITC website. The data in the report are shown on an annual and quarterly basis, by category and by Harmonized Tariff Schedule (HTS) 10-digit subheadings.

By category, annual data are provided from 2010 through 2016, and quarterly data are provided from first quarter 2015 through fourth quarter 2016. By HTS10 subheading, annual data are provided from 2014 through 2016, and quarterly data are provided from first quarter 2015 through fourth quarter 2016.

The report also will be available on the USITC Internet site in Excel and PDF formats at http://www.usitc.gov/research_and_analysis/What_We_Are_Working_On.htm (scroll down to the bottom of the page).  A DVD of the report may be requested by email at pubrequest@usitc.gov, by calling 202-205-2000, or by writing the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public unless they are classified by the requester for national security reasons

The U.S. International Trade Commission (USITC) today released a public version of its confidential report on whether certain textile and apparel articles from Nepal are import sensitive.

The investigation, Nepal: Advice Concerning Whether Certain Textile and Apparel Articles Are Import Sensitive, was requested by the U.S. Trade Representative (USTR).

The USITC, an independent, nonpartisan, factfinding federal agency, submitted a confidential version of the report to the USTR on September 29, 2016. The USTR requested that the USITC issue a public version of the report containing only the unclassified sections, with any business confidential information deleted.

As requested, the USITC provided advice on the likely impact on U.S. imports, competing U.S. industries, and U.S. consumers of providing duty free treatment for the following 66 HTS 8 digit subheadings from Nepal:

 Nepal: Advice Concerning Whether Certain Textile and Apparel Articles Are Import Sensitive, (Investigation No. 332-558, USITC publication 4640, Sept/Oct 2016) is available on the USITC's Internet site at https://www.usitc.gov/publications/332/pub4640.pdf.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance.  The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated.  The Commission makes no recommendations on policy or other matters in its general factfinding reports.  Upon completion of each investigation, the USITC submits its findings and analyses to the requester.  General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

Although U.S. Imports of Woven Cotton Bottoms under the EIAP Rose in 2015, Industry Sources Do not Attribute the Increase to the EIAP

Seven years after its implementation, the Earned Import Allowance Program (EIAP) is not providing enough incentives to substantially boost Dominican apparel exports to the U.S. market, as intended, reports the U.S. International Trade Commission (USITC) in its publication Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Seventh Annual Review.

The EIAP allows apparel manufacturers in the Dominican Republic who use U.S. fabric to produce certain apparel to earn a credit that can be used to ship eligible apparel made with non-U.S.-produced fabric into the United States duty free. The Dominican Republic-Central America-United States Free Trade Agreement Implementation Act, as amended, requires the USITC, an independent, nonpartisan, factfinding federal agency, to evaluate annually the effectiveness of the EIAP program and make recommendations for improvements.

The USITC's seventh annual review was submitted to the U.S. House of Representatives Committee on Ways and Means and the U.S. Senate Committee on Finance on July 29, 2016. Highlights of the report follow.

• Of the 12 registered firms, only 5 firms are currently using the program, the same number reported in the sixth annual review.

• In 2015, U.S. imports of woven cotton bottoms from the Dominican Republic tripled by value to $8.2 million from $2.7 million in 2014 and increased more than fivefold by quantity. U.S. industry sources attributed these increases, however, to incidental larger orders rather than to incentives offered by the EIAP.  Moreover, the value and quantity of U.S. imports of woven cotton bottoms under the EIAP in 2015 accounted for less than 25 percent and 41 percent, respectively, of what they were at their peak in 2010.

• U.S. exports to the Dominican Republic of cotton fabrics of a weight suitable for making bottoms rose 13 percent by quantity and 11 percent by value between 2014 and 2015.

• Except for one addition, the recommendations offered during the seventh annual review of the EIAP were virtually the same as those received by the Commission during the previous six annual reviews: 1) lowering the 2-for-1 ratio of U.S. to foreign fabric to a 1-for-1 ratio; 2) expanding the program coverage to enable other types of fabrics and apparel items to be included in the EIAP; and 3) changing the requirement that dyeing and finishing of eligible fabrics occur in the United States.  The new recommendation proposed during the seventh annual review was to add countries to the EIAP to foster regional integration and create further opportunities in other CAFTA-DR countries.

Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Seventh Annual Review (Inv. No. 332-503, USITC Publication 4626, July 2016) is available on the USITC's Internet site at https://www.usitc.gov/publications/332/pub4626.pdf  

USITC general factfinding investigations, such as this, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, and the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subject investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigations reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

The U.S. International Trade Commission (USITC) today released its annual compilation of reports published every two weeks on textile and apparel imports from China.

The report, Textile and Apparel Imports from China: Statistical Reports, Annual Compilation 2015, was requested by the U.S. House of Representatives' Committee on Ways and Means.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, produced an annual compilation of data that has been posted on a bi-weekly basis on the USITC website. The data in the report are shown on an annual and quarterly basis, by category and by Harmonized Tariff Schedule (HTS) 10-digit subheadings.

By category, annual data are provided from 2008 through 2015, and quarterly data are provided from first quarter 2014 through fourth quarter 2015. By HTS10 subheading, annual data are provided from 2013 through 2015, and quarterly data are provided from first quarter 2014 through fourth quarter 2015.

The report also will be available on the USITC Internet site in Excel and PDF formats at https://www.usitc.gov/research_and_analysis/what_we_are_working_on.htm (scroll down to the bottom of the page). A DVD of the report may be requested by email at pubrequest@usitc.gov, by calling 202-205-2000, or by writing the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public unless they are classified by the requester for national security reasons.