FTAs have been key catalyst in boosting exports of LDCs or the buying country’s preferred trade partners, especially in case of USA which is the largest apparel buying country in the country.
As per OTEXA data, the country’s apparel imports valued US $ 69.85 billion in Jan.-Oct. ’21 period, elevated by rising demand as compared to 2020.
Of total import value, around 16 per cent was contributed by countries that have FTAs with USA as the import value under different FTAs stands at US $ 11.16 billion, noting 28.30 per cent yearly growth.
Dominican Republic and Central America constitute around US $ 5.37 billion in US import values under CAFTA-DR agreement in Jan.-Oct. ’21, as against US $ 4.03 billion in the same period of the prior year.
Canada and Mexico too have FTA privilege with USA under USMCA and both the countries seem to have benefitted out of it this year.
Canada’s apparel shipment to USA under FTA valued US $ 381.88 million, while the share of Mexico remained as large as US $ 2.30 billion.
Peru, from South America, exported US $ 573 million worth of garments to USA under FTA, while Colombia and Chile clocked US $ 198.77 million and US $ 4.73 million, respectively.
Israel, Jordan and South Korea, as per OTEXA, were other major destinations that have FTAs with USA and the combine value of imports of the US from these destinations stands at US $ 1.32 billion.
Fashion categories have seen revival in the USA this year, at least till October, as shoppers are enthusiastically yet cautiously spending on apparel items. And, it will be exciting to see how FTAs will impact US buying in coming months.