US sees manufacturing boost, ports upgrade, green initiatives in 2022

Here is a peek into some of the major developments.

Policy

US House of Representatives Democratic Party member from Oregon state Earl Blumenauer, who is the chairman of the House Ways and Means Trade Sub-committee, unveiled in January new legislation to strengthen US international trade import laws to stop non-market economies and goods from exploiting the de minimis threshold that allows imports valued under $800 to come into the United States without paying duties, taxes or fees.

Standing up for workers’ rights, supporting agriculture, promoting confidence in trade policy through enforcement, and broadly engaging with stakeholders to facilitate inclusive, durable trade policy and promote equity are some of the key elements of the 2022 Trade Policy Agenda and 2021 Annual Report, delivered by the Office of the US Trade Representative (USTR) in March. Engaging with key trading partners and multilateral institutions; accelerating decarbonisation and promoting sustainable environmental practices; and bolstering supply chain resiliency were key elements as well.

The USTR in March announced its determination to reinstate certain previously granted and extended product exclusions in the China Section 301 Investigation. The determination reinstates 352 of the 549 eligible exclusions. The reinstated product exclusions were applicable as of October 12, 2021 and extended till December 31, 2022. Products include textile items.

A nine-month extension to the 352 product exclusions was announced in December. The extension will help align further consideration of these exclusions with the ongoing comprehensive four-year review.

The US Export-Import Bank’s board approved in April a new tool—the ‘Make More in America’ initiative—aimed at boosting US manufacturing, strengthening closing critical supply chain gaps and supporting American jobs. The initiative will create new financing opportunities that spur US manufacturing. It will allow companies to tap existing medium- and long-term loans and loan guarantees for export-oriented domestic manufacturing projects as part of President Joe Biden’s push to bolster US supply chains.

With its coming into force on June 21, the Uyghur Forced Labor Prevention Act (UFLPA) requires US companies to prove that goods imported from China’s Xinjiang are not made with forced labour; or else Customs and Border Protection can seize those. The act was signed into law by President Biden on December 23, 2021.

The president signed into law in August a $430-billion partisan bill, designed to address climate change, healthcare and taxation. It aims at cutting domestic greenhouse gas emissions and ensuring that corporations and the wealthy pay taxes.

The US administration is projected to achieve more than $1.5 trillion in deficit reduction this year due to the new Inflation Reduction Act (IRA) of 2022, after reducing the deficit by more than $350 billion last year. The act requires the super wealthy and large corporations to pay their fair share, while no small business or family making under $400,000 per year will pay any extra taxes. Small businesses can receive a tax credit that covers 30 per cent of the cost of switching over to low-cost solar power – lowering operating costs and protecting against the volatile energy prices that are currently squeezing small businesses.

Textile, Garment & Fashion

New York City mayor Eric Adams announced a partnership in February with the New York City Economic Development Corporation to create new jobs for New Yorkers, expand Brooklyn’s footprint in the fashion industry, and provide a boost to New York’s economy. The Made in NY Garment Hub was planned to serve as a space to grow jobs and expand workforce training in garment manufacturing, fashion design and other affiliated businesses.

In the same month, New York state governor Kathy Hochul announced a partnership with IMG to implement a $500,000 grant programme to assist small, independent fashion designers with grants of $50,000 each to offset certain costs of their New York Fashion Week show productions for the September 2022 season. The grant programme supported the vibrant return of the New York fashion industry post-COVID-19, attract and retain New York’s fashion talent, and enable more small and independent New York-based designers to participate in recovery efforts.

The US department of agriculture (USDA) in April committed $50 million to assist eligible apparel manufacturers of worsted wool suits, sport coats, pants or pima cotton dress shirts; pima cotton spinners; and wool fabric manufacturers and wool spinners.

The Cotton and Wool Apparel (CAWA) programme was part of USDA’s Pandemic Assistance for Producers initiative and the department’s efforts to help US’ food, agriculture and forestry sectors get back on track. CAWA supported entities that witnessed a decline of at least 15 per cent in 2020 gross sales or consumption of eligible products compared to the applicant’s gross sales in any of calendar years 2017, 2018, or 2019.

In August, several North Carolina-based educational institutions joined hands with the Central American Technological University in Honduras to educate and train students for the next-generation textile workforce to meet a rising tide of nearshoring and onshoring in Honduras, Central America and the United States. The initiative was backed by the US department of state.

In October, New York governor Kathy Hochul signed a piece of legislation to support the state’s textile industry through economic development programmes. The New York Textile Act helps connect farmers who produce plant or animal fibres with the textile industry in ways that support innovation, sustainable development and new marketing opportunities for plant and animal fibres grown in New York.

New funding worth $189,000 was announced in November for Delaware Valley Industrial Resource Centre (DVIRC), an economic development business consulting firm, through Pennsylvania’s Manufacturing PA Training-to-Career programme to address the need for sewing machine operators in south-eastern Pennsylvania’s textile industry by creating a training collaborative.

Logistics

The US department of transportation announced in March making available $450 million under the Bipartisan Infrastructure Law for American ports, by far its largest investment ever. The funds under the Port Infrastructure Development Programme grants will make infrastructure upgrades, from constructing new berths and restoring docks to extending rail lines. This investment was also part of the government’s Port Action Plan.

President Biden in June signed the Ocean Shipping Reform Act of 2022 that established additional requirements and prohibited conduct for ocean carriers; requires the Federal Maritime Commission (FMC) to issue rules related to certain fee assessments, prohibited practices and establishment of a shipping registry. The act also authorised the FMC under certain circumstances to issue an emergency order requiring common carriers to share information directly with shippers and rail and motor carriers.

Sustainability

The New York state senate passed a bill in May to prohibit the use of perfluoroalkyl and polyfluoroalkyl substances (PFAS), or ‘forever chemicals’, in apparel. The bill focused on ‘intentionally added chemical’ or those that serve an intended function in the product. The California state assembly too in August passed a bill to end the use of PFAS in new fabrics and textiles. It was signed into law in October.

New waste ban regulations that promote recycling and reuse, reduce trash disposal and foster recycling business growth took effect starting November 1 in Massachusetts state. The regulations will ban the disposal of mattresses and textiles in the trash. The state’s department of environmental protection also announced a new grant offering to invest in expanding the infrastructure for collecting food waste, mattresses and textiles.

The California Air Resources Board approved in December the final proposed 2022 Scoping Plan, a road map to address climate change that cuts greenhouse gas emissions by 85 per cent and achieves carbon neutrality in 2045. The plan’s transition away from fossil fuels will benefit residents of the state disproportionately burdened by transport-induced pollution.

By 2045, this economy-wide shift away from fossil fuels seeks to reduce fossil fuel consumption (liquid petroleum) to less than one-tenth of what we use today—a 94 per cent reduction in demand, cut greenhouse gas emissions by 85 per cent below 1990 levels, reduce smog-forming air pollution by 71 per cent, create 4 million new jobs and save Californians $200 billion in health costs due to pollution in 2045.

E-commerce

The US House of Representatives late this year passed three consumer protection and commerce bills, including the Integrity, Notification and Fairness in Online Retail Marketplaces (INFORM) for Consumers Act, which requires online platforms to verify the identity of high-volume third-party sellers by authenticating the seller’s name, tax ID, bank account information and contact information.

This additional transparency will help combat the online sale of stolen, counterfeit and dangerous consumer products and enable consumers to contact and seek recourse from such sellers.

Fibre2Fashion News Desk (WE)