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AFFORDABLE FOOTWEAR ACT DOES NOT GET INTO TAX EXTENDERS PACKAGE, BUT NOW CO-SPONSORED BY 1/5 OF SENATE Regrettably, the AAFA-supported Affordable Footwear Act (AFA) (S. 730) did not make it into the tax extenders package the US Senate approved March 10 (See Related Article). However, the lobbying for the inclusion of the Affordable Footwear Act as an amendment to the tax extenders package did yield one new co-sponsor for the Affordable Footwear Act legislation -- Senator John Kerry (D-MA) -- bringing the total list of bi-partisan co-sponsors to 20, or one-fifth of the US Senate. Thanks to the experience with the tax extenders package, the Affordable Footwear Act is primed to move as part of the next jobs package that will be considered by the Senate later this spring. The Affordable Footwear Act would eliminate the import duties on US imports of low-cost and children's shoes and other high-dutied footwear, footwear no longer made in the United States. (Nate Herman)
MTB - EFFORTS TO EXTEND EXPIRED DUTY-FREE PROVISIONS FOR FOOTWEAR/TEXTILES HITS YET ANOTHER BUMP High expectations that Congress would approve an AAFA-supported Miscellaneous Tariff Bill (MTB) renewing recently expired provisions providing duty-free or reduced-duty access for US imports of certain footwear (including certain outdoor footwear) and textiles before Congress adjourns for its Easter recess later this month hit yet another bump on May 11 when House Republicans announced "a unilateral moratorium on all earmarks, including tax and tariff-related earmarks." The fate of the MTB renewals, as well as a new MTB package containing dozens of new textile and footwear duty-free provisions originally expected to be approved later this year, remains unclear in light of this announcement. (Nate Herman) AAFA RELEASES RSL 6 On March 12, as part of its 2010 Annual Executive Summit, AAFA published the sixth edition of the AAFA Restricted Substances List (RSL), covering apparel, footwear, and home textiles. The AAFA RSL, first released in the summer of 2007, is the first of its kind. The list covers chemicals and other substances whose presence in a product is restricted through a government regulation or law. The list identifies the most restrictive iteration of that regulation world wide. The list, which has become the global industry standard for RSLs, can be downloaded for free from the AAFA Web site. Other chemical management tools are also avaiable for free on the AAFA website. (Greg Yahr) GROUP OF SIX MEETS NEW DSCP COMMANDER AAFA and the Group of Six (Go6), the coalition representing America's military clothing, footwear and textile manufacturers and suppliers, met with Air Force General Scott Chambers on March 12. The General recently took over as Commander of the Defense Supply Center Philadelphia (DSCP). In the meeting, AAFA, the Go6 and DSCP had very proactive conversations on areas of continued improvement and engaged in a meaningful dialogue on still outstanding issues where industry and DOD can continue to work together to enable the supply chain flows more efficiently. (Kurt Courtney)
PETRAEUS TO TESTIFY ON DOD FUNDING General David Petraeus will be on Capitol Hill this week defending the Pentagon's FY10 wartime supplemental spending request and its FY11 budget proposal before the House and Senate Armed Services Committees. The Obama administration's budget proposal sent to Congress on February 1 includes a $33 billion supplemental to pay for the wars in Iraq and Afghanistan for the remainder of this fiscal year. For FY11, the administration has requested $708.2 billion in new defense spending, which includes $159.3 billion for the wars. (Kurt Courtney) CHINA MOVES TOWARDS "REACH" STYLE REGULATION Recent press reports indicate that the Chinese Ministry of Environmental Protection (MEP) has just published a new regulation, Measures on the Environmental Management of New Chemical Substances. The regulation would require companies to identify all chemicals in the products they sell in China. The structure of the regulation is very similar to the European Union's (EU) REACH regulations. The new regulations will come into force on October 15, 2010. AAFA continues to monitor this issue. (Greg Yahr) KOREA TO INTRODUCE NEW PRODUCT RECALL SYSTEM IN 2011 According to recent press reports, starting in February 2011, the Korean government will gain the authority to force a company to recall manufactured products with serious defects. Currently, product recalls in Korea are entirely voluntary. The government can cancel the safety certification of the product in question, but the product collection and destruction relies on the judgment of the individual local government. If products have a substantial defect, the new law will allow the Korean government to ban the products from the market as well as to collect and to destroy the products in question. (Rebecca Mond)
CPSC CONTINUES TO ANNOUNCE RECALLS OF CHILDREN'S APPAREL DUE TO DRAWSTRING VIOLATIONS The Consumer Product Safety Commission (CPSC) on March 10 announced three voluntary recalls of children's upper outerwear due to drawstring violations. The recalls included 3,600 girls' hooded jackets distributed by Regaliti Inc., 600 girls' jackets imported by Byer California, and 2,800 boys' hooded jackets imported by Brand Evolution. No injuries or incidents were reported. In January, the CPSC conducted a month long "field blitz" where CPSC field officers visited over 230 retail locations and found sixteen violations. To date, the CPSC has announced eleven of the 16 recalls. (Rebecca Mond) SENATE PASSES TAX EXTENDERS PACKAGE, BILL FATE STILL UNKNOWN The US Senate on March 10 approved the $140 billion Tax Extenders Act of 2009 (HR 4213) by a 62-36 margin. However, House Democrats may still have to overcome some serious hurdles before the bill is able to move to President Obama's desk for his final signature. The Senate bill extends several tax provisions as well as farm disaster assistance, unemployment insurance benefits and COBRA benefits for laid off workers. The legislation renews recently expired AAFA-supported provisions enabling the US Small Business Administration (SBA) to increase guarantees on small business loans from 75 percent to 90 percent and eliminate fees charged on small business loans. The bill extends many expired tax provisions for one year and retroactively to January 1, 2010, including the R&D tax credit, deferral for active financing and the look-through rules for controlled foreign corporations and provide additional time for companies to make required pension payments. In addition, it broadens the tax credit for energy efficient windows, doors and skylights and allows companies to use their unused Alternative Minimum Tax (AMT) credits based on hiring workers or making investments. (Kurt Courtney) CHINA - 130 HOUSE MEMBERS DEMAND CHINA BE NAMED CURRENCY MANIPULATOR AS CHINESE PREMIER CLAIMS THERE IS NO PROBLEM 103 members of Congress sent a letter March 15 to Secretary of the Treasury Tim Geithner and Secretary of Commerce Gary Locke demanding that China be named a currency manipulator by the US government. Meanwhile, China's Premier, Wen Jiabao stated in his annual press conference March 14 at the conclusion of the National People's Congress that China would not revalue its currency. (Nate Herman) WTO REPORT - NO SIGNIFICANT INCREASE IN GLOBAL TRADE PROTECTIONISM Despite recent protectionist actions against US-branded footwear in Brazil, Turkey and Europe and against US apparel in Brazil, a new World Trade Organization (WTO) report released March 8 claims that there has been no "significant intensification of trade or investment restriction." However, the report cautions that governments must "remain vigilant in opposing protectionism." (Nate Herman)
AAFA WELCOMES NEW MEMBER: KANEKA CORP / MITSUI, LTD KILLICK DATTA BECOMES AAFA BOARD OF DIRECTORS CHAIRMAN During the 2010 American Apparel & Footwear Association (AAFA) Annual Executive Summit in Washington, D.C., outgoing AAFA Chairperson Carol J. Hochman, President of RHH Capital & Consulting, Inc., turned over the chairmanship of the AAFA Board of Directors to Killick Datta, Chairman and Chief Executive Officer of International Brand Partners, LLC. The officer rotation ceremony was held Thursday, March 11, 2010 at a gala reception and dinner at the Newseum. Datta has served as a former senior executive for Nike, L.A. Gear, Wolverine World Wide, Inc., and Skechers. Datta is also a member of the Industry Trade Advisory Committee (ITAC) on Textiles and Clothing, a group of stakeholders who provide the Secretary of Commerce and the U.S. Trade Representative with industry perspective on trade policy. Burke also announced that Rick Darling, President of Li & Fung USA, has moved up to the Vice Chairman position, Philip Williamson, Chairman, President and CEO of Williamson-Dickie Manufacturing Co., has moved up to AAFA Board Treasurer, and Joseph Gromek, President and CEO of Warnaco, Inc., has moved into the AAFA Board Secretary position. A complete listing of the AAFA Board of Directors and officers can be found on the AAFA Web site by clicking here. (Marti Rust) AAFA HOLDS ANNUAL EXECUTIVE SUMMIT IN WASHINGTON, DC The 2010 AAFA Annual Executive Summit concluded in Washington, DC, on March 12, after a two-day program that brought together top administration officials, respected government veterans and case studies on progressive retail successes. Constructed around the theme – Engage. Influence. Lead. – discussions included the impact of politics on our industry, legislative/regulatory practices affecting the global marketplace and innovative, retail practices. Along with Marshal Cohen, Chief Industry Analyst, The NPD Group, who addressed the New Era of Consumption, this year’s speakers included U.S. Trade Representative Ron Kirk (click here for remarks), U.S. Consumer Product Safety Commission Chairman Inez M. Tenenbaum (click here for remarks), former Senator John Breaux (D-LA), former Senator Trent Lott (R-MS), former Commerce Secretary and Kellogg Company CEO Carlos Gutierrez, CNN commentator Paul Begala, and Fox News contributor Tucker Carlson. Retail perspectives were shared through a panel discussion led by the Home Shopping Network, Costco, and Mango. Given the great CEO attendance and positive response, the Summit will return to Washington, DC in 2011. (Susan Lapetina)
As Health Vote Awaits, Future of a Presidency Waits, Too from The New York Times Senator Mitch McConnell, the Republican leader, had a little political advice last week for President Obama and the Democrats: Don’t pass the president’s health care legislation because you would risk losing in the midterm elections. More Brown, Sarkozy slam U.S. 'protectionism' over plane from The Associated Press via Google The French and British leaders accused the U.S. of protectionism on Friday over a contract to build a new Air Force refueling tanker. More Peru joins Trans-Pacific trade talks in Melbourne from Andina Peru will participate in the first round of negotiations on a Trans-Pacific Partnership, starting in Melbourne, Australia. More China talks tough to U.S. from The Wall Street Journal Premier Wen Jiabao aimed sharp words at Washington on Sunday, ceding little ground on China's currency policy and suggesting that U.S. efforts to boost its exports by weakening the dollar amounted to "a kind of trade protectionism." More When the Textile Mill Goes, So Does a Way of Life from USA Today Here, in the place that inspired Mayberry of The Andy Griffith Show and in textile towns just like it across the Southeast, thousands of workers are starting over again, sometimes painfully, at ages when they thought they'd be planning retirement. More |
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