An official website of the United States government. 
News Release 24-096
Inv. No(s). 332-602
Contact: Jennifer Andberg, 202-205-1819
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.