U.S. Bill Would Help Haitian Textiles
Thursday, April 29, 2010 6:20APRIL 28, 2010, 6:49 P.M. ET
By IANTHE JEANNE DUGAN And DAVID LUHNOW
U.S. lawmakers moved to assist Haiti’s garment industry Wednesday, introducing a bill to expand a program that waives tariffs on U.S. imports of clothes from the country.
The Haiti Economic Lift Program Act, a bipartisan measure introduced in both the House and Senate, would extend duty-free benefits on knits and woven fabrics to 200 million square meter equivalents of textiles, respectively, up from 70 million each under current law.
The preferential access would extend through 2020, rather than ending in 2018 as it stands under the current law.
Mark D’Sa, senior director of sourcing and production for Gap Inc. in March testified before a Congressional committee that the old limits were too small and the time frame too short for big producers to get a reasonable return on their investment.
“This would create good jobs for the people of Haiti and offer a sourcing location with strategic proximity to support the needs or rapid response that U.S. retailers and brands require in today’s environment,” he said.
The current law—the Haitian Hemispheric Opportunity through Partnership Encouragement Act—was created in 2006 and expanded in 2008. Hait’s textiles—a linchpin of the nation’s economy—represent about 0.7% of U.S. garment imports.
“All we are asking is that it apply to 1% of imports,” said Georges Sassine, the owner of a Port-au-Prince apparel factory who heads Haiti’s textile industry association.
If the bill passes, he says, it would bring thousands of jobs. Once thriving with 90,000 employees, the industry has dwindled to about 28,000 workers due to trade embargoes, antiquated telephone and electricity networks and a lack of buildings.
The garment industry represents 90% of the nation’s exports, though it generates only about $450 million annually producing products for such brands as Hanes, Gap and New Balance. It employs a third of all manufacturing workers.
Sen. Chuck Grassley (R-Iowa) said the law would help spur investment. “At the same time,” he said, “the legislation addresses the concerns that have been expressed by the U.S. textile industry with respect to both domestic and regional production of textiles and apparel.”
“The devastating earthquake in Haiti took the lives – and livelihoods – of hundreds of thousands of our neighbors in Haiti, and they need our help to begin rebuilding their country,” said Senate Finance Committee Chairman Max Baucus (D-Mont.), a co-sponsor.
Write to Ianthe Jeanne Dugan at ianthe.dugan@wsj.com and David Luhnow at david.luhnow@wsj.com
Source of news http://online.wsj.com/article/
