California Apparel News

The Sourcing in the Americas Pavilion at the August edition of Sourcing at MAGIC in Las Vegas Aug. 21–24, sponsored jointly by the U.S. Trade Representative (USTR) and Department of Commerce, was perking with business, but the crowds were especially thick, and intrigued, at the Central American–Dominican Council of Textiles and Apparel (CECATEC) and Office for Textiles and Apparel (OTEXA) booths. The special guest, from Washington, D.C., was Assistant U.S. Trade Representative for Textiles and Apparel Gail Strickler, who was there to launch the Internet-based CAFTA-DR Sourcing Directory. The roughly 5-year-old Central America–Dominican Republic Free Trade Agreement—CAFTA-DR—was forged to encourage and facilitate the flow of newly duty-free trade among its signatories, which comprise the United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua. One of the most critical trade components of this group is textiles and apparel, with raw materials and fabrics coming from the United States and completed garments returning back over the border.

Under CAFTA-DR’s aegis, the United States sought support and enhanced trade opportunities for its estimated 395,000 workers in a U.S. textile industry that had seen its foundations undercut badly by other competition. Since CAFTA-DR’s implementation, business has picked up considerably: In 2010, nearly 70 percent of U.S. imports of apparel under CAFTA-DR were sewn from regional fabric and yarn, with the United States exporting $2.4 billion in yarn and fabric to its partners and importing from them more than $7 billion in apparel. This year has seen some tinkering with, and fine-tuning of, the agreement, but it is largely regarded as a success, or, as the USTR office notes, “In terms of preserving the benefit of the agreement for the Partieshellip;one of the most effective trade agreements ever negotiated.”

How to make a constructive business trade arrangement even better was the undertone of Representative Strickler’s mission at MAGIC. In March, she had raised the possibility of an online directory designed to hook up textile and apparel manufacturers and suppliers with retailers, brands and importers, thus maximizing the CAFTA-DR benefits. In collaboration with the USTR, the Inter-American Development Bank (IDB) and the trading-partner governments, the site, www.drcaftasourcing.com, was now up and running, Strickler announced, although still in Beta mode.

The USTR and IDB led “about 50 hands-on, one-on-one demonstrations, and the site was highlighted at every event at the Sourcing in the Americas Pavilion, creating buzz among hundreds of attendees,” said a USTR spokesperson. “The response from the industry was overwhelmingly positive. Multiple buyers expressed an interest in sourcing the Americas and indicated that the site is just the kind of resource they have been looking for.” Several manufacturers entered their business profiles on the spot. Since August, some 105 manufacturers and suppliers, 50 of which are from the United States, have signed up on the database.

“The DR-CAFTA Sourcing Directory is a timely and practical tool that will help American firms and their workers in the U.S. textile industry seize regional trade opportunities in support of small businesses and jobs here at home,” said Strickler. “Building better connections between textile buyers and manufacturers will facilitate additional investment in the region, including increased sourcing of textiles and apparel in CAFTA-DR member countries, as well as attract increased sourcing of textiles and apparel to the Western Hemisphere.”

The user-friendly site includes detailed profiles of suppliers and drop-down lists of apparel products, equipment and services that can be checked to launch a specific search—for knit women’s pantsuits, for example, or woven yellow twill, fabric-dyed, bottom-weight, manmade fiber. Posting a company profile is free as is searching for brands and retailers.

The next phase, according to the USTR, is to develop the verification mechanism of the site, by which the regional trade associations from each country fully vet the information uploaded by companies. The initial group of companies on the database has already been vetted. The site will also incorporate feedback received from the industry to streamline functionality and ensure that the kind of information brands and retailers want is included in the database.

The USTR and its partners clearly expect big things from the Sourcing Directory. “The showcase at MAGIC has given the project the needed momentum to propel it toward its next milestone,” the USTR spokesperson said. A premiere of the full version of the site will be readied in time for the annual meeting of USA-ITA this November in New York and then at MAGIC next February.”—Carol A. Crotta