#1 Do you think it is a good move for companies to embrace
the “China plus Vietnam plus Many” sourcing strategy, especially
after learning about the working conditions in developing countries such as
Bangladesh? Do you think this could backfire on companies?
#2 Why or why not do you think sourcing from Asia will
become less attractive relative to sourcing from the Western Hemisphere due to the
increasing importance of “speed to market” in U.S. fashion apparel companies’ sourcing
#3 As sustainability becomes more prevalent throughout the
fashion industry, will there be a way to lower costs, while still creating
garments that are better for the environment, and have transparency with consumers
about factory conditions? Why?
#4 According to the article, “more and more well paid
and high quality jobs in the US fashion industry will depend on international
trade and the global value chain.” How do you feel about the quality of
the US fashion industry depending so heavily on factors outside of the US? Do
you see this changing in the future, and if so explain how.
#5 Most U.S. apparel companies have already shifted their
businesses to non-manufacturing activities such as design, branding, sourcing
and retailing. Is it still meaningful to give so much attention to apparel
manufacturing in the U.S.?
#6 When purchasing your garments from either online stores
or brick-and-mortar stores, do you look to see what country your goods are produced
in and on a scale from 1 to 10 with 1 being the least important 10 being the most
important, how significant is it to you to know where your goods are coming
from and how much of a factor does that play into your buying decision?
#7 If it is predicted that more US fashion companies’
sourcing could be from nearshore due to automation technology, what would
happen if they technology was implemented in a place where there were lower
labor costs (for the people operating the machines)? Would the US continue to
use nearby manufacturers or would they resort to wherever is cheaper?
#8 Do you think “made in the USA” apparel is truly telling the whole story of the supply chain? Do you think that it is truly more ethical? Or do you think it is just a way for retailers to charge more for apparel? If producing products in the U.S. is much more expensive than importing products from other countries, how are companies such as Walmart able to sell products with labels that say “Made in U.S.A”?
[For FASH455: 1) Please mention the question number in your comments; 2) Please address at least TWO questions in your comments]
The size of the U.S. textile and apparel industry has significantly shrunk over the past decades. However, U.S. textile manufacturing is gradually coming back. Notably, the value added of U.S. textile manufacturing reached $18.88 billion in 2017, the highest level since 2009.
Nevertheless, the share of U.S. textile and apparel
manufacturing in the U.S. Gross Domestic Product (GDP) dropped to only 0.15% in
2017 from 0.57% in 1998, as the case in most advanced economies with a mature industrial
It is also important
to note that U.S. textile and apparel manufacturing is changing in nature.
For example, textiles had accounted for over 80% of the total output of the
U.S. textile and apparel industry as of 2017, up from around 50% in the late 1990s. Meanwhile, clothing had only
accounted for 12% of the total U.S. fiber consumption in 2012 (the latest data
available), whereas the manufacturing of non-apparel textile products in the
United States, such as industrial and technical textiles, has been growing particularly
fast over the past decade.
are NOT coming back to the U.S. textile and apparel industry. In 2018, U.S.
textile manufacturing (NAICS 313 and 314) and apparel manufacturing (NAICS 315)
lost 2,100 and 4,800 jobs respectively. However, improved productivity is one critical
factor behind the job losses.
Regarding international trade, the United States remains a leading textile exporter and apparel importer overall. Interesting enough, both the value of U.S. textile and apparel imports enjoyed much faster growth in 2018 than in the previous years. Notably, for the first time since 2001, the U.S. textile sector (NAICS 313) experienced a trade deficit ($172 million) rather than a trade surplus. Meanwhile, the U.S. trade deficit in apparel (NAICS 315) reached $86,097 million in 2018, up nearly 6% from a year ago. These unusual trade patterns could be partially affected by the U.S.-China tariff war, which didn’t seem to be helpful with solving the trade deficit concerns.
While U.S. textile manufacturers and the apparel and retail
industries have expressed overall support for the newly reached
US-Mexico-Canada Free Trade Agreement (USMCA or NAFTA2.0), textile producers
and the apparel sector still hold divergent views on certain provisions:
Rule of Origin
USMCA vs. NAFTA1.0: The
USMCA will continue to adopt the “yarn-forward” rules of origin. The USMCA will
also newly require sewing thread, coated fabric, narrow elastic strips, and
pocketing fabric used in apparel and other finished products to be made in a
USMCA country to qualify for duty-free access to the United States.
U.S. textile industry: U.S.
textile manufacturers almost always support a strict “yarn-forward” rules of
origin in U.S free trade agreements and
they support eliminating exceptions to the “yarn forward” rule as well. The
National Council of Textile Organization (NCTO) estimates that a yearly USMCA
market for sewing thread and pocketing fabric of more than $300 million.
U.S. apparel and retail
industries: The U.S. apparel industry opposes “yarn forward” and argues
that apparel should be considered of
North American origin under a more flexible regional “cut and sew” standard,
which would provide maximum flexibility for sourcing, including the use of
foreign-made yarns and fabrics.
Levels (TPL) for Textiles and Apparel
USMCA vs. NAFTA1.0: With some adjustments, the USMCA would continue a program that allows duty-free access for limited quantities of wool, cotton, and man-made fiber apparel made with yarn or fabric produced or obtained from outside the NAFTA region, including yarns and fabrics from China and other Asian suppliers.
U.S. textile industry: The
textile industry contends China is a major
beneficiary of the current NAFTA TPL mechanism, and it strongly pushed for its
complete elimination in the USMCA.
U.S. apparel and retail
industries: U.S. imports of textiles and apparel covered by the tariff preference level mechanism supply 13% of
total U.S. textile and apparel imports from Canada and Mexico. Apparel
producers assert that these exceptions give regional producers flexibility to
use materials not widely produced in North America.
Viewpoints on other Provisions in USMCA
U.S. textile industry: The
U.S. textile industry also opposes the USMCA newly allows visible lining fabric
for tailored clothing could be sourced
from China or other foreign suppliers, and it would permit up to 10% of a
garment’s content, by weight, to come from outside the USMCA region (up from 7%
in NAFTA1.0). The U.S. textile industry also welcomes that the USMCA would add specific textile verification and
customs procedures aimed at preventing fraud and transshipment. Additionally, the U.S. textile industry is also pleased
that the USMCA would end the Kissell
Amendment. The Kissell Amendment is an exception in NAFTA that allows
manufacturers from Canada and Mexico to qualify as “American” sources when Department
of Homeland Security (DHS) buys textiles, clothing, and footwear using
appropriated funds (about $30 million markets
for textiles, clothing, and shoes altogether).
U.S. apparel and retail
industries: Apparel importers are of
concern that the USMCA continue to incorporate the existing NAFTA short
supply procedure, which is extremely difficult to get a new item approved and
added to the list, limiting their flexibility to source apparel with inputs
from outside North America.
Finally, the report argues that “Regardless of whether the USMCA takes effect, the global competitiveness of U.S. textile producers and U.S.-headquartered apparel firms may depend more on their ability to compete against Asian producers than on the USMCA trade rules.”
While the majority of apparel consumed in the United States come from overseas, “Made in the USA” is growing in popularity. According to the 2018 U.S. Fashion Industry Benchmarking Study released by the U.S. Fashion Industry Association (USFIA) in July 2018, around 46 percent of surveyed U.S. fashion brands and apparel retailers report currently sourcing “Made in the USA” products, even though local sourcing typically only account for less than 10 percent of these companies’ total sourcing value or volume. Likewise, the State of Fashion 2019 report published by Business of Fashion (BOF) and McKinsey & Company in November also forecasts that over 20 percent of U.S. fashion companies’ sourcing volume could be from nearshore by 2025, thanks to automation technology and consumers’ increasing demand for speed to market.
However, the detailed practice of the “Made in the USA” apparel sourcing strategy–including who is sourcing, what products are sourced, and what the typical price range of these products remain largely unknown.
To answer these questions, we recently analyzed the pricing, product assortment and inventory information of over 90,000 fashion retailers and 300,000,000 fashion apparel products at the Stock-Keeping Unit (SKU) level based on EDITED, a big data and business analytics tool developed for the fashion industry. For the research purpose, we selected apparel products newly launched to the U.S. market in the past twelve months (i.e., between 1 December 2017 and 30 November 2018) with “Made in the USA” explicitly mentioned in the product description. Below are the key findings:
First, “Made in the USA”
apparel overall are treated as a niche product in U.S. fashion brands and
retailers’ sourcing portfolio.
the 12 months we examined (1 December 2017-30 November 2018), 94 out of the
total 348 retailers (or 27 percent) sold “Made in the USA” apparel in the U.S.
market. The top 10 sellers list includes BOTH retailers that focus on the value
market such as Walmart and relatively high-end department stores such as
Bloomingdale and Saks Fifth Avenue. However, even for these top sellers, “Made
in the USA” apparel accounted for less than 8 percent of their total product
offers on average.
Second, U.S. fashion brands and retailers are most
likely to source“Made in the
USA” apparel for relatively fashion-oriented items, particularly bottoms (such
as skirts, jeans, and trousers), dresses, all-in-ones (such as playsuits and
dungarees), swimwear and suits-sets.
edge for these product categories in the retail market, in general, increasingly depends on unique designs, high
product quality, and speed to market,
which makes sourcing from the United States commercially beneficial. In comparison, imported products are more concentrated
on basic fashion items often competing on price in the U.S. retail market,
including tops (such as T-shirt and polo shirt), underwear, and nightwear.
It is also interesting to note that
“Made in the USA” apparel were predominately women’s wear (92 percent), whereas imported
clothing adopted a more balanced gender combination (63 percent women’s wear
and 37 percent men’s wear). Because the fashion trends for women’s wear usually
are shorter-lived and harder to predict, this result once again indicates that seeking
quick response and shorter lead time for stylish and trendy items could be an
important incentive for local sourcing by U.S. fashion brands and retailers.
Third, consistent with the common perception,
“Made in the USA” apparel overall are pricier than imported ones in the U.S.
Taking the U.S.
apparel retail market as a whole, close to 40 percent of “Made in the USA” offering
in the past 12 months targeted the premium or luxury market, compared with only
20 percent of imported products. In
contrast, as few as 18 percent of “Made in the USA” offering were in the value
market, which, however, accounted for approximately 60 percent of all imported apparel
sold in the U.S. market. In totality, it
seems U.S. fashion brands and retailers are purposefully targeting “Made in the
USA” apparel for less price-sensitive segments of the market to balance the
high domestic production cost.
On the other hand, when examining
U.S. fashion brands and retailers’ pricing strategy at the product level, “Made
in the USA” clothing was still priced much higher than imported ones for almost
all major apparel categories, except hosiery. Notably, in the past 12 months, the
average unit retail price of “Made in the USA” clothing was 99.2 percent higher
than imported ones in the value and mass market and 36.0 percent higher in the
premium and luxury market. This interesting phenomenon supports the arguments that
U.S. consumers somehow are willing to pay a premium price for products with the
“Made in the USA” label.
Additionally, during the past 12
months, around 46.3 percent of “Made in the USA” apparel were sold at a
discount compared with more than 54.6 percent of imported ones. The advantage
of proximity to the market, which makes speedy replenishment for in-season items
possible, is an important factor behind the more successful control of
markdowns for “Made in the USA” products. For example, data shows that U.S.
fashion brands and retailers replenished approximately 12.7 percent of their “Made
in the USA” offering in the past 12 months but only 2.8 percent of imported
In conclusion, the findings of this study concur with the view that “Made in the USA” apparel are still relevant today. Meanwhile, it does not seem to be the case that “Made in the USA” apparel and imported ones are necessarily competing with each other in the U.S. retail market. With apparel sourcing increasingly requiring striking a balance among various factors ranging from cost, flexibility, compliance to speed to market, it is hopeful that “Made in the USA” apparel will continue to have its unique role to play in U.S. fashion brands and retailers’ merchandising and sourcing strategies.
do you see as the biggest challenges – and opportunities – facing the apparel
industry in 2019, and why?
In my view, uncertainty will remain the single biggest challenge facing the apparel industry in 2019, ranging from a more volatile global economy, the unpredictable outlook of the U.S.-China trade talks to the various possible scenarios of Brexit. While uncertainty creates exciting new research opportunities for scholars like me, it could be a big headache for companies seeking a foreseeable market environment to guide their future business plan and investments.
Meanwhile, the increasing digitalization of the apparel supply chain based on big-data tools and artificial intelligence (AI) technologies means a huge opportunity for fashion companies. Indeed, the apparel industry is quickly changing in nature—becoming ever more globalized, supply-chain based, technology-intensive and data-driven. Take talent recruitment as an example. In the 2018 US Fashion Industry Benchmarking Study, which I conducted in collaboration with the US Fashion Industry Association (USFIA), as much as 68 percent of surveyed leading U.S. fashion brands and apparel retailers say they plan to increase hiring of data scientists in the next five years. Googling “apparel industry” together with terms such as “big data” and “data science” also returns much more results than in the past. It is hopeful that the advancement of digital technologies and the smarter use of data will enable apparel companies to overcome market uncertainties better and improve many aspects of their businesses such as speed to market, operational efficiency and even sustainability.
happening with sourcing? How is the sourcing landscape likely to shift in 2019,
and what can apparel firms and their suppliers do to stay ahead?
on my research, I have three observations regarding apparel companies’ sourcing
trends and the overall sourcing landscape in 2019:
First, apparel companies overall will continue to maintain a diverse sourcing base. For example, in a recent study, we examined the detailed sourcing portfolios of the 50 largest U.S.-based apparel companies ranked by the Apparel Magazine. Notably, on average these companies sourced from over 20 different countries or regions using more than 200 vendors in 2017. Similarly, in the 2018 US Fashion Industry Benchmarking Study, which I conducted in collaboration with the US Fashion Industry Association (USFIA), we also found companies with more than 1,000 employees typically source from more than ten different countries and regions. Since no sourcing destination is perfect, maintaining a relatively diverse sourcing base allows apparel companies to strike a balance among various sourcing factors ranging from cost, speed, flexibility, to risk management.
Second, while apparel companies are actively seeking new sourcing bases, many of them are reducing either the number of countries they source from or the number of vendors they work with. According to our study, some apparel companies have been strategically reducing the number of sourcing facilities with the purpose of ensuring closer collaborations with their suppliers on social and environmental compliance issues. Some other companies are consolidating their sourcing base within certain regions to improve efficiency and maximize productivity in the supply chain. Related to this trend, it is interesting to note that approximately half of the 50 largest U.S. apparel companies report allocating more sourcing orders to their largest vendor in 2017 than three years ago.
Third, nearshoring or onshoring will become more visible. Take “Made in the USA” apparel for example. According to the 2018 U.S. Fashion Industry Benchmarking Study, around 46 percent of surveyed U.S. fashion brands and apparel retailers report currently sourcing “Made in the USA” products, even though local sourcing typically only account for less than 10 percent of these companies’ total sourcing value or volume. In a recent study, we find that 94 out of the total 348 retailers (or 27 percent) sold “Made in the USA” apparel in the U.S. market between December 2017 and November 2018. These “Made in the USA” apparel items, in general, focus on fashion-oriented women’s wear, particularly in the categories of bottoms (such as skirts, jeans, and trousers), dresses, all-in-ones (such as playsuits and dungarees), swimwear and suits-sets. The advantage of proximity to the market, which makes speedy replenishment for in-season items possible, also allows retailers to price “Made in the USA” apparel substantially higher than imported ones and avoid offering deep discounts. Looking ahead, thanks to automation technology and consumers’ increasing demand for speed to market, I think nearshoring or onshoring, including ”Made in the USA” apparel, will continue to have its unique role to play in fashion brands and retailers’ merchandising and sourcing strategies.
should apparel firms and their suppliers be doing now if they want to remain
competitive further into the future? What will separate the winners from the
2019 will be a year to test apparel companies’ resources, particularly in the sourcing area. For example, winners will be those companies that have built a sophisticated but nimble global sourcing network that can handle market uncertainties effectively. Likewise, companies that understand and leverage the evolving “rules of the game”, such as the apparel-specific rules of origin and tariff phase-out schedules of existing or newly-reached free trade agreements, will be able to control sourcing cost better and achieve higher profit margins. Given the heavy involvement of trade policy in apparel sourcing this year, companies with solid government relations should also enjoy unique competitive advantages.
the other hand, as apparel business is changing in nature, to stay competitive,
apparel companies need to start investing the future. This includes but not limited to exploring new sourcing
destinations, studying the changing consumer demographics, recruiting new
talents with expertise in emerging areas,
and adopting new technologies fitting for
the digital age.
keeps you awake at night? Is there anything else you think the apparel industry
should be keeping a close eye on in the year ahead? Do you expect 2019 to be
better than 2018, and why?
things are at the top of my watchlist:
First, what is the future of China as an apparel sourcing base? While external factors such as the U.S.-China tariff war have attracted most of the public attention, the genuine evolution of China’s textile and apparel industry is something even more critical to watch in the long run. From my observation, China is playing an increasingly important role as a textile supplier for apparel-exporting countries in Asia. For example, measured by value, 47 percent of Bangladesh’s textile imports came from China in 2017, up from 39 percent in 2005. Similar trends are seen in Cambodia (up from 30 percent to 65 percent), Vietnam (up from 23 percent to 50 percent), Pakistan (up from 32 percent to 71 percent), Malaysia (up from 25 percent to 54 percent), Indonesia (up from 28 percent to 46 percent), Philippines (up from 19 percent to 41 percent) and Sri Lanka (up from 15 percent to 39 percent) over the same time frame. A key question in my mind is how quickly China’s textile and apparel industry will continue to evolve and upgrade by following the paths of most other advanced economies in history.
Second, how will the implementation of several
newly-reached free trade agreements (FTAs) affect the big landscape of apparel
sourcing and the existing regional apparel supply chains? For example:
The newly-reached U.S.-Mexico-Canada Free Trade Agreement (USMCA or commonly called NAFTA2.0) includes several interesting changes to the textile and apparel specific rules of origin provisions, such as the adjustment of the tariff-preference level (TPL) mechanism. Whether these changes will boost textile and apparel production in the Western-Hemisphere and attract more sourcing from the region will be something interesting to watch.
In 2017, close to 80% of Asian countries’ textile imports came from other Asian countries, up from around 70% in the 2000s. Similarly, in 2017, 85.6% of Asian countries’ apparel imports also came from within the region. The negotiation of the Regional Comprehensive and Economic Partnership (RCEP) is likely to conclude in 2019, whose membership includes member states of the Association of Southeast Asian Nations (ASEAN) and other six economies in the Asia-Pacific region (Australia, China, India, Japan, South Korea and New Zealand). Will RCEP result in an ever more integrated Asia-based textile and apparel supply chain and make the Asia region even more competitive as an apparel sourcing destination?
October 16, 2018, the Trump
Administration notified U.S. Congress its intention to negotiate the
U.S.-EU Free Trade Agreement. Between
2013 and 2016, the United States and EU were also engaged in the negotiation of
a comprehensive free trade agreement– Trans-Atlantic Trade and Investment Partnership
(T-TIP) with the goal to unlock market access opportunities for
businesses on both sides of the Atlantic through the ambitious elimination of
trade and investment barriers as well as enhanced regulatory coherence. The T-TIP
negotiation was stalled since 2017, although
the Trump Administration has never officially announced to withdraw from the
II. Negotiating Objectives
January 11, 2019, the Office of the U.S. Trade Representative (USTR) released
objectives of the proposed U.S.-EU Free Trade Agreement after
seeking inputs from the public. Overall, the proposed agreement aims to address
both tariff and non-tariff barriers and to “achieve fairer, more balanced trade”
between the two sides.
Regarding textiles and apparel, USTR says it will secure duty-free access for U.S. textile and
apparel products and seek to improve competitive opportunities for exports of
U.S. textile and apparel products while taking into account U.S. import
sensitivities” during the negotiation. The proposed U.S.-EU free trade
agreement also will “establish origin procedures for the certification and
verification of rules of origin that promote strong enforcement, including with respect to textiles.” T-TIP
had adopted similar negotiating objectives for the textile and apparel sector.
III. Industry viewpoints on the agreement
January 2019, leading trade associations
representing the U.S. apparel industry and the EU textile and apparel industries
have expressed support for the proposed U.S.-EU Free Trade Agreement. In general,
these industry associations recommend the agreement to achieve the following
First, eliminate import duties. For example:
Apparel and Footwear Association (AAFA): “We
support the immediate and reciprocal elimination of the high duties that both
countries maintain on textiles, travel goods, footwear, and apparel.”…” We also
support the immediate elimination of any retaliatory duties imposed by the
E.U., as well as any duties imposed by the U.S. (that led to that retaliation).
The duties impose costs on activities, including manufacturing activities in
the U.S., and undermine markets for U.S. exporters in Europe.”
Apparel and Textile Confederation (Euratex):“The
European Textile and Clothing sector faces high tariffs while exporting to the
US market from 11% to up to 32% for some products, namely sewing thread of
man-made filaments, suits, woven fabrics of cotton, trousers and t-shirts. Zero
customs duties while ensuring modern rules of origin will allow EU companies to
boost exports and offer more choice to American consumers and professional
Second, promote regulatory coherence (Harmonization). For example:
AAFA: “The E.U. and the
United States both maintain an extensive array of product safety, chemical management,
and labeling requirements regarding apparel (including legwear), footwear,
textiles, and travel goods.”…” Yet they often contain different requirements,
such as testing or certification, that greatly add compliance costs.”…” We
believe the U.S.‐E.U. trade agreement presents an important opportunity to achieve
harmonization or alignment for these regulations.”
Euratex: “Maintaining high
level of standards while eliminating unnecessary burdens, removing additional
requirements and facilitating customs procedures that impede business are top
priorities. Mutual recognition of the EU and US standards will preserve high
level of consumer protection on both sides of the Atlantic. Convergence on labelling (fibre
names, care symbols and wool labelling),
consumer safety on children products and flammability standards is key for the
T&C sector.” “EURATEX believes the EU and US standardization bodies should
cooperate on setting standards for Smart Textiles taking into account the
industry views for facilitating development and trade of such products of the
Third, adopt flexible/modern rules of origin. For example:
AAFA: “We should also support higher usage of the agreement by making sure the rules of origin reflect the realities of the industry today…”the yarn forward” rules, although theoretically promote usage of trade partner inputs, in practice they operate as significant barriers that restrict the ability of companies to use a trade agreement in many cases”…” We need to incorporate sufficient flexibilities into the rules of origin so that different supply chains –and the U.S. jobs they support – can take advantage of the agreement.”
Euratex: “Zero customs
duties while ensuring modern rules of
origin will allow EU companies to boost exports and offer more choice to
American consumers and professional buyers.”
The National Council of Textile Organizations (NCTO), which represents the U.S. textile industry, hasn’t publically stated its position on the proposed U.S.-EU Free Trade Agreement. However, NCTO had strongly urged U.S. trade negotiators to adopt a yarn-forward rule of origin in T-TIP. NCTO also opposed opening the U.S. government procurement market protected by the Berry Amendment to EU companies.
IV. Patterns of U.S.-EU textile and apparel trade
United States and the EU are mutually important textile and apparel (T&A)
trading partners. For example, the United States is EU’s largest extra-region
export market for textiles, and EU’s fifth largest extra-region supplier of
textiles in 2017 (Euratex, 2018).
the EU is one of the leading export markets for U.S.-made technical textiles as
well as an important source of high-end apparel products for U.S. consumers (OTEXA,
2018). Specifically, in 2017, U.S. T&A exports to the European Union
totaled $2,572 million, of which 73.2% were textile products, such as specialty
& industrial fabrics, felts & other non-woven fabrics and filament
yarns. In comparison, EU’s T&A exports to the United States totaled $4,163
million in 2017, among which textiles and apparel evenly accounted for 48.7%
and 51.3% respectively.
V. Potential economic impact of the agreement
By adopting the Global Trade Analysis Project (GTAP) model, Lu (2017) quantitatively evaluated the potential impact of a free trade agreement between the U.S. and EU on the textile and apparel sector. According to the study:
the trade creation effect of the agreement will expand the EU-U.S.
intra-industry trade for textiles. Meanwhile, the agreement is likely to
significantly expand EU’s apparel exports to the United States.
the trade diversion effect of the U.S.-EU Free Trade Agreement will affect other
T&A exporters negatively, including Asia’s T&A exports to the U.S. market
and EU and Turkey’s T&A exports to the EU market.
Third, the U.S.-EU Textile and Apparel Trade might affect the intra-region T&A trade in the EU region negatively but in a limited way.
Overall, the study suggests that the EU T&A industry will benefit from the additional market access opportunities created by the U.S.-EU Free Trade Agreement.One important factor is that the U.S. and EU T&A industries do not constitute a major competing relationship. For example, the United States is no longer a major apparel producer, and EU’s apparel exports to the United States fulfill U.S. consumers’ demand for high-end luxury products. The U.S.-EU Free Trade Agreement is also likely to create additional export opportunities for EU textile companies in the U.S. market, especially in the technical textiles area, which accounted for approximately 40% of EU’s total textile exports to the United States in 2017 measured in value. Compared with traditional yarns and fabrics for apparel making purposes, technical textiles are with a greater variety in usage, which allows EU companies to be able to differentiate products and find their niche in the U.S. market.
Further, the study suggests that we shall pay more attention to the details of non-tariff barrier removal under the U.S.-EU Free Trade Agreement, which could result in bigger economic impacts than tariff elimination.