|
|
February 6, 2003
Ambassador Robert Zoellick
Dear Ambassador Zoellick:
As the Administration prepares for the upcoming bilateral textile negotiations with Vietnam, it is important that the views of the U.S. apparel importing and retailing community are fully understood and incorporated into the Administration’s negotiation objectives.
Vietnam constitutes an extremely important sourcing opportunity for us, especially in light of the continuing uncertain economy, shifting security conditions and the upcoming termination of the international quota system. Therefore, the Administration’s rush to seek quotas with Vietnam is very troubling. At this point, Vietnam accounts for only 1.6 percent of total U.S. apparel imports. The 2002 trade is just a small sign of Vietnam’s potential. The normalization of Vietnam’s trade status came too late in 2001 for many of our companies to place orders there for first half 2002 shipment. Unrestricted 2003 trade is more likely to be indicative of Vietnam’s true capability.
More importantly, the expanding trade from Vietnam is largely a reflection of business transplanted from other Asian and Middle Eastern suppliers, including Myanmar (Burma). The decision of U.S. retailers and importers to source in Vietnam is a shift in the production of apparel that has traditionally been imported, rather than an expansion of overall apparel imports or a loss of U.S. domestic production.
The U.S. import community is also keenly focused on Vietnam as a means of addressing a likely decline in access to the U.S. market in 2004, the last year of the Agreement on Textiles and Clothing (ATC). Quota will be extremely tight that year, assuming the economy has improved by then, because there will be no future quota against which to “borrow,” a practice that has been essential to responding to consumer demand throughout the term of the quota system. The ability to source sufficient product from Vietnam in 2004 will be essential to offset the quantitative limitations on traditional suppliers, which have not kept up with consumer demand. Both before and after the expiration of the ATC, Vietnam also will be an important alternative to China.
Honorable Robert Zoellick February 6, 2003 Page Two
We urge the Administration not to restrict Vietnam’s apparel trade. To the extent any quotas are established, we ask that they are limited to products for which there is substantial U.S. production and at levels truly reflective of Vietnam’s potential.
Sincerely, Age Group Ltd., New York, NY |
Washington, DC |
Hanoi |
|