

The study is available HERE

Key findings:


Textile “Yarn-Forward” Rule of Origin




Tariff Preference Levels (TPL) for Textiles and Apparel




Viewpoints on other Provisions in USMCA




Related reading:

Author: Sheng Lu

Professor @ University of Delaware

5 thoughts on “New CRS Report: Textile and Apparel Sectors Disagree on Certain Provisions of the Proposed U.S.-Mexico-Canada (USMCA) Agreement”

    1. USMCA wants to go forward with the “yarn – forward” rule because it allows for more regulations in the production steps. USMCA also hopes that this rule will veer their manufacturers from producing or sourcing their textiles from competitors like China. With that being said, they fail to take into account the negative impact it will have on the U.S. apparel brands and retailers. It is extremely expensive to source domestically and with these “rules” put in place, it limits their accessibility to other textiles. In an industry where the most cost – effective sourcing is needed to remain competitive, the “yard – forward” rule I believe will be detrimental to this sector of apparel.

  1. Obviously we know the textile and apparel industry go hand in hand but that does not mean they always see eye to eye. “Yarn-forward” under USMCA is clearly an advantage for the textile industry because it will add more items to the list that have to be made in a qualified USMCA country which means more money in their pockets. U.S. apparel companies are not the biggest fans of yarn forward because it limits where they can source materials for their garments if they want to enjoy the free trade. I think this article is very intriguing and really gets you thinking about the T&A industry. Also, as a consumer you want to know what is going on and how these agreements and provisions affect you and what you are buying

  2. The textile industry want the US to require this strict “yarn forward” rule. The rule states that fibers can be procured in any country, however every other component from the yarn to textile must be produced in an area with free trade. As mentioned before a TPP agreement could ultimately hurt U.S. exports. Thus, I believe the enforcement of a strict “yarn forward” is only to protect U.S. exports from Asian competition. This new rule will encourage longer duty phase-outs for sensitive items. This will protect from destructive outcomes such as sharp duty reductions that ultimately can give reason for transshipment fraud.

  3. The US textile industry benefits from the “yarn-forward” rule because it protects the US textile production. It enforces the use of US made textiles to be used instead of products from outside countries like China. The TPP agreement would not help US textile manufacturers because it would allow more business with outside textile producers. This could hurt the US textile industry because competitors could offer textiles at a lower cost than the US and would in turn have business drawn away from the US.

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