The U.S. Congress has granted President Obama the authority to negotiate the Trans-Pacific Partnership (TPP), which accounts for 40% of the world’s economic output.
But it may have an impact on the small-scale clothing industry in Southern California.
According to data from the U.S. Department of Labor (Labor Department), from 1990 to 2010, the employment rate of workers in the U.S. garment manufacturing industry dropped by 80%.
Many surviving garment factories are located in Southern California, but they also face operational difficulties. According to data from the Los Angeles County Economic Development Corporation, 60% of jobs in California’s garment manufacturing industry have disappeared since 2002-2012.
California Labor Federation spokesman Steve Smith said that many small independent garment manufacturers are at a competitive disadvantage because they are unwilling to outsource garment processing.
Lonnie Kane, CEO of Karen Kane women’s clothing company, said that since almost all of the company’s products are processed locally, TPP will not help the company much. The beneficiaries of the TPP are Asian manufacturers and importers. Vietnamese companies, which account for 10% of U.S. garment imports, were supposed to pay a 32% tariff to enter the United States. Under the TPP, they may enter duty-free.
Ilsa Metchek, president of the California Fashion Association, said that 90% of the ready-made garments imported by the association’s member manufacturers used to be manufactured locally.
Mactech predicts that once the TPP comes into effect, Southern California’s garment processing industry will shrink by another 20%.
TPP will impact the small garment processing industry in Los Angeles, California, USA
The U.S. Congress has granted President Obama the authority to negotiate the Trans-Pacific Partnership (TPP), which accounts for 40% of the world’s economic output. But it may have an impact on the small-…
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