Peru, Mexico Seek Role In Vietnam Cotton Pants Program Under TPP

摘要

Mexico and Peru are vying to incorporate themselves into a deal on cotton pants being hashed out by the United States and Vietnam in the Trans-Pacific Partnership (TPP) talks, in hopes that doing so will mitigate the negative impact they believe the program will have on their textile industries, according to informed sources. The so-called "earned import allowance" program being discussed between the U.S. and Vietnam would allow Vietnam to receive preferential tariffs on exports of cotton pants to the U.S. market made with fabric from outside the TPP region, as long as it also imported a specified amount of pants fabric from the United States. Sources here said this program would likely operate at a one-to-one ratio, meaning Vietnamese producers would have to import one unit of pants fabric from the U.S. to export an equivalent amount of pants with non-regional fabric to the U.S. market at the reduced duty rate. While this has been on the table for weeks between the U.S. and Vietnam, Mexico and Peru are now hoping that their pants fabric would also be able to count toward these credits, sources said. One source said this compromise could also entail giving Mexico and Peru a role in implementing and monitoring the program.