Initial benefits from US textiles bill worth $35M

American garment buyers have placed an initial order of $35 million worth of garments following the filing of a bill in the US Congress that seeks to allow duty-free and preferential tariffs to locally-made garments into the US market.

Trade and Industry Undersecretary and Board of Investments managing head Elmer Hernandez said that new orders were trickling in following the filing of the 809 Apparel/Pilot Program, also known as the Save Our Industries Act, by Rep. Jim McDermott last June 25 before the US Congress.

“The initial order of $35 million is a sign of good faith that even if the bill was no yet passed, American garment buyers are starting to place orders,” Hernandez said.

Hernandez said the bill was expected to be passed within the end of the year or first quarter next year at the latest.

The industry expects additional exports of at least $300 million from the bill. The country averages $1 billion in annual exports of garments.

Hernandez said once passed, the bill would also open a lot of opportunities for textile manufacturing and foreign investors in the country.

Prospective investors are American and other nationalities engaged in textile manufacturing, who want to take advantage of supplying the huge market through the Philippines.

Under the 809 Apparel program, certain Philippine apparel will enter the US duty free. If the garment is made of US yarns, these are allowed to enter US at reduced tariff. A component of the program also provides duty-free entry to the US of certain Philippine apparel regardless of the source of fabric.

About 60 garment manufacturers have expressed interest to stage a comeback and expand operations in the country, with initial investments of about $480 million and additional exports of $1.1 billion, following the filing of the bill.

Major garment manufacturers, who are also members of the Confederation of Garment Exporters of the Philippines (Congep) and Garment Business Association of the Philippines (Gbap), revealed this during a press conference.

George Siy, Congep chairman emeritus, projected a smooth sailing for the bill noting that the Philippine team has already secured all the needed support in the US Congress and the American Apparel and Footwear Association. –Ayen Infante, Daily Tribune