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Strict country-of-origin rules in TPP

Industry News | April 1, 2012 | By:

Negotiations continue on the Trans Pacific Partnership (TPP) agreement, which involves the U.S. and eight Pacific Rim nations: Vietnam, Brunei, Chile, New Zealand, Singapore, Australia, Malaysia and Peru. However, a new global group, Textile and Apparel Alliance for TPP (TAAT), has formed to call on trade negotiators to ensure that strict textile rules are part of the pact. In particular, the 30 nations in the alliance oppose a request by Vietnam to change country-of-origin rules, which currently require that all materials in a garment originate and are assembled in the TPP country before that country receives tariff-free treatment. Other groups representing apparel retailers, brands, manufacturers and importers claim that existing rules are outdated and inflexible, especially in a global industry with complex supply chains.

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