Apparel Production in the Philippines Could Gain Advantage
Legislation to give preferential trade treatment to certain apparel made in the Philippines has been introduced in a U.S. Senate bill.
Sen. John Ensign (R–Nev.) introduced S. 105 on Jan. 25, a bill that is similar to legislation introduced during the previous Congress by former Sen. Kit Bond (R–Mo.).
The newest bill would give duty-free status to certain apparel wholly assembled or knit to shape in the Philippines regardless of yarn origin, fabrics or components. Clothing that would be eligible for duty-free status includes cotton and synthetic shirts, T-shirts, tank tops, blouses, pants, shorts, swimwear, and underwear.
In 2010, the Philippines exported about $1 billion in apparel and textiles to the United States, a 0.65 percent decline over the previous year.
In 2008, the United States exported nearly $20 million in textiles to the Philippines. A preferential tariff program in the Philippines could help the United States boost textile exports to that country. The bill is also considered a stepping stone for eventually hammering out a free-trade agreement between the United States and the Philippines.
The Philippines, however, has to meet a few requirements if the bill is passed.
It must re-establish the Electronic Visa Information System to help prevent transshipment of apparel and the use of counterfeit documents related to goods sent to the United States.
It must agree to cooperate with the United States to act on transshipment of goods that come from other countries and pass through the Philippines and then on to the United States.
Philippine factories and exporters of goods receiving preferential treatment must keep export records and production records for at least five years.
The government must pass regulations that will allow for seizure of merchandise that is transiting the country from other countries and appears to be destined for the United States.—Deborah Belgum
