Rep. Jim McDermott, D-Wash., is in the process of developing legislation that would grant duty-free and quota-free access to the US market for a wide range of least developed countries in a move that does not sit well with US textile manufacturers. While details of the proposed legislation are still being worked on, it reportedly would result in freer access to the US market for as many as 50 countries, including Bangladesh and Cambodia, which already are major shippers of apparel to the United States. The McDermott proposal reportedly would place some limits on imports from Cambodia and Bangladesh for that reason.

The proposed bill also could provide more liberalized treatment for imports from countries covered by the African Growth and Opportunity Act, under which textile and apparel trade is somewhat limited by a country-of-origin rule that requires yarn and fabric in apparel to be made in participating countries. Without the rule of origin, US manufacturers fear the African nations could become major transshipping points for Chinese apparel. They also believe US trade in apparel components with Western Hemisphere nations would decline as result of increased imports from other areas.

The McDermott proposal is expected to incorporate language that would require countries benefiting from the special treatment to adopt International Labor Organization labor standards. It also would require that human rights protection be promoted.

The bill also would provide US funds for capacity building and infrastructure development in the participating countries.

October 16, 2007