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February
6, 2003 Ambassador
Robert Zoellick United
States Trade Representative 600
17th Street, N.W. Washington,
D.C. 20508 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
Ann Taylor, New York, NY
Baby Togs Inc., New York, NY
Bernard Chaus, Inc., New York, NY
Chico’s, Ft. Myers, FL
Dress Barn, Inc., Suffern, NY
Eddie Bauer Inc., Redmond, WA
Family Dollar Stores, Charlotte, NC
Fashion Options Inc., New York, NY
Federated Department Stores, Inc., Cincinnati, OH
Gap Inc., San Francisco, CA
Harve Benard Ltd., Secaucus, NJ
J.C. Penney Company, Inc., Plano, TX
Jones New York, New Yor, NY
Junior Gallery, New York, NY
K-Mart, Troy, MI
Kids “R” Us, Paramus, NJ
Limited Brands Inc., Columbus, OH
Liz Claiborne Inc., Secaucus, NJ
Lollytogs Ltd., New York, NY
London Fog, Seattle, WA
May Department Stores Company, St. Louis, MO
Neiman Marcus Group, Longview, TX
Nike, Beaverton, OR
Norton McNaughton, Edison, NJ
Paul Davril, Los Angeles, CA
Perry Ellis, Miami, FL
Philips Van Heusen, New York, NY
Public Clothing, Carlstadt, NJ
Regent, New York, NY
Salant Corp., New York, NY
Sears Roebuck and Co., Hoffman Estates, IL
Seattle Pacific Ind., Kent, WA
Summit Resource Imports, LLC, Belgrade, MT
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