#1 Many US fashion companies choose to continue to diversify their sourcing base and they are actively seeking supplementary sourcing destinations. How to explain this phenomenon?
#2 U.S. apparel imports from Vietnam has been growing rapidly in recent years. Why do you think Vietnam has been able to expand as a garment exporter so quickly, outperforming most of its Asian competitors?
#3 Why would, after everything that happened at Rana Plaza, U.S. apparel companies still outsource to Bangladesh?
#4 Why would U.S. fashion companies want to become more diversified with the countries and factories that they are currently sourcing from? Is there still room for expansion for larger corporations who are already quite diverse with their sourcing base? Why or Why not?
#5 Why does the U.S. fashion industry still hold a positive view on the future of the industry despite the reported rising pressures of increasing production or sourcing costs? If China is a major factor causing the pressure of rising production and sourcing cost, why didn’t U.S. fashion companies just move out of China and switch to source from elsewhere?
Free Trade Agreement and Rules of Origin
#6 America most often applies the “yarn forward” standard for textiles and apparel. This states that the fibers can be produced in any country, but the spinning into yarn must take place in free trade area. Do you think this is the most beneficial method the U.S. can use? Would the United States be able to, in reality, employ a “fiber forward” standard instead and use the land in the U.S. Midwest to use domestically grown cotton or wool?
#7 Two debates over free trade agreements (FTAs) include: 1) FTAs act as a “stumbling block” to global trade liberalization, and 2) FTAs act as a “building block” to multilateral trade liberalization. What is your view, especially based on our analysis on the impact of NAFTA, CAFTA-DR and TPP?
#8 In class we discussed the special relationship between NAFTA & CAFTA-DR and the US textile industry. Will the Trans-Pacific Partnership (TPP) help the U.S. textile industry further expand export opportunities in the Asia-Pacific region? On the other hand, how will TPP potentially affect the U.S. textile and apparel trade with the NAFTA and CAFTA-DR regions?
#9 Do you think that Rules of Origin (RoO) are having a negative impact on the larger picture of global trade? Since RoO intends to limit preferential treatments to FTA member countries only, is this simultaneously hindering outside countries from maximizing their opportunities with countries they are not in an FTA with?
#10 If the “Yarn-Forward” rule were to be implemented by the TPP, what types of effects do you think we would see on US apparel consumers? What benefits would the US textile manufacturers have if this were to happen and would the benefits outweigh the cost to US consumers and the limits that would be placed on countries such as Vietnam?
[Please feel free to join our online discussion. For the purpose of convenience, please mention the question # in your reply/comment.]