Home Apparel TPP may change sources for US apparels

TPP may change sources for US apparels

There’s a reason President Obama made the case for the Trans-Pacific Partnership (TPP) at Nike’s headquarters: American clothing companies that want to manufacture their clothes in Vietnam are big winners in the massive trade deal. If the deal takes effect, clothes and, eventually, shoes made abroad in TPP countries will become much cheaper to bring into the United States. That’s potentially good news for Nike’s bottom line – it makes more shoes in Vietnam than anywhere else – and theoretically for consumers, if companies pass along the savings on import duties. The deal could be particularly good for Vietnam, one of the world’s biggest garment exporters, which trades more with the US than any other country. So while some of the biggest fights over TPP have had little to do with the garment industry, the reality is that this piece of the deal could have big ramifications for everyday consumers. It could mean better business for American companies, including textile exporters. And the Obama administration argues it will improve working conditions for workers in countries like Vietnam – but labor and human rights experts don’t necessarily agree. Vietnam exports more clothing than any other country but China, and most of it ends up in the United States: 18 percent of women’s suits, blouses, and shirts imported to the US came from Vietnam in 2013.