U.S. apparel importers blast Vietnam quota cutbacks
A decision last week by the Bush administration to cut back apparel quotas from Vietnam has caused “shock and anger” among American importers, according to the U.S. Association of Importers of Textiles and Apparel (USA-ITA).
“The reductions in Vietnam quota levels are particularly upsetting because U.S. government negotiators misled importers into believing that if reductions were imposed, they would be minimal,” USA-ITA said in a statement.
“All of the reports we received on the first round of talks indicated that consultations went well, and that the U.S. was talking about maybe 100,000 dozen in charges, and that there would be more talks before any decisions were made. It is unfathomable that, without any further discussion, the number suddenly went to 1 million dozen,” said Laura E. Jones, executive director of USA-ITA, which is based in New York.
“One million dozen is not minimal. It is huge and will hurt. These are big losses for absolutely no good reason. Orders for 2004 are already set, and now they have to be rethought,” Jones said.
Vietnam is not a member of the World Trade Organization. Although apparel quotas are being lifted at the end of 2004 for all WTO members, Vietnam will continue to be subject to quotas.
“The administration has been trying to get China to agree to more quotas, but they can’t do it because China has rights as a member of the WTO. So Vietnam, which is totally subject to the whims of the U.S., is taking the fall instead,” Jones said.
American apparel importers also believe that the Vietnam quota cutbacks “are a ploy to make the U.S. domestic textile industry feel better about the fact that the quota system is ending this year. It is unforgivable to play politics with our business,” the USA-ITA said.