Friday, October 21, 2005

HISTORICAL HOSIERY HAPPENING: October 21, 1936 - US Tariff Commission Orders Official Investigation of Cotton Hosiery Imports: Case Submitted in Association’s Petition and Brief Supported; Public Hearing to be Held Later

We are pleased to be able to advise that as we go to press (October 21, 1936) we are in receipt of an official notice from the United States Tariff Commission stating that at a meeting of the Commission held last Thursday, October 15, an official investigation of cotton hosiery and import duties thereon was ordered under Section 336 of the Tariff Act.

… All members of the Hosiery Industry, particularly those directly affected by imports of cheap cotton half hose and anklets coming from Japan, will be pleased to know of the progress which is being made on this important issue.

NEED EMPLOYEE HOLIDAY GIFT IDEAS? Give them a unique piece of hosiery history.
Whether it’s employee gifts or those who were involved with the hosiery industry, learn more about the exciting events that have transpired in the hosiery industry in the last 100 years. Purchase copies of The Hosiery Association Centennial: In Step With The Industry For 100 Years. This is the only commemorative publication that captures the Association’s 100-year history of leaders, events, programs and services. Information on how to order is available on our web site. There are a limited number of copies available so they will be sold on a first-come, first-served basis. Act promptly as orders are being filled weekly. These make unique gifts and are only available through THA. Requests to have the author, Sally Kay, sign your copy are also being taken via the order form. Visit www.hosieryassociation.com or contact THA staff at 704-365-0913 to obtain your history book order form.

CHA Supplier Luncheon: The October 27 supplier luncheon will be a repeat performance of “A Student Panel’s Youthful Perspective to Fashion/Purchasing Trends.” The location for this one will be The Pepper Tree Inn located in Greensboro, NC and begins at 11:30 a.m. (Eastern). Registration information is available on THA’s website. REMINDER - The deadline for registering is Monday, October 24. If you have any questions, please contact Mike Austell at 704-365-0913 ext 204.

2006 CHA Luncheon Sponsorship opportunities are still available. If your company is interested in sponsoring any of the 2006 CHA luncheons, please contact Mike Austell at 704-365-0913 ext 204. Call early before all dates are taken. All luncheons are held on the 4th Thursday of the month and alternate between Hickory (Jan, Mar, May & Sept) and Greensboro (Feb, Apr, Aug & Oct).

Hosiery 101 & 102 Courses will be offered again at the Hosiery Technology Center in Hickory, NC on November 9 & 10. For further information, visit www.legsource.com. Classes cost $60 each and the deadline for registering is one week prior to the class dates.

THA Credit Group Meeting: The next meeting of the Credit Group will be on Thursday, November 17 and will be held at the Lyon Credit Services office in Charlotte, NC. For information about this group, contact Jeanna Sheldon, staff liaison, at 704-365-0913 ext 203.

AL Chapter Monthly Luncheon: The next luncheon meeting for the Alabaman Chapter will be on Thursday, November 17 at the Western Sizzlin’ in Fort Payne, AL. Stay tuned for program information as it becomes available. FRONTIER SPINNING MILLS will be the sponsor of this meeting, and a special Thank You goes out to them.

THA Industry Executive Summit/Board Meeting will be held November 17-18 in Charlotte, NC. As THA officially turns 100, Marshal Cohen, chief industry analyst for the NPD Group and one of the leading business strategists will conduct a thought provoking, challenging planning session for hosiery industry executives. This invitation only event will offer its participants an exclusive setting to share industry concerns and network with their peers. The Board of Directors meeting will follow the leadership summit. Seating is limited for this session. Please contact Sally Kay at 704-365-0913, ext. 212 sally.kay@hosieryassociation.com if you are not on the THA Board and would like to attend.

CHA’s 47th Annual Meeting will take place on Thursday, December 1 at The Sawtooth Building in Winston-Salem, NC. The program will feature a panel of hosiery company CEO’s that will share their insight as to what is keeping them competitive in today’s business environment. Everyone is invited to attend this great networking opportunity…you don’t have to be a CHA member to participate. Registration information will soon be available on THA’s website.

AL & TN Chapters Christmas Party will be held at The Chattanoogan in Chattanooga, TN on Friday, December 9. Additional information on this event will be forthcoming.

THA’s 101st Annual Convention- April 27-30, 2006 at Desoto Hilton in Savannah, Ga.

National Textile & Apparel Team Office of Textiles & Apparel, USDOC PIEDMONT TRIAD CHAPTER - NCWTA USDOC EXPORT ASSISTANCE CENTER - GREENSBORO PRESENT CAFTA-DR & CHINA SAFEGUARDS TUESDAY , NOVEMBER 15th - GREENSBORO HIGH-POINT MARRIOTT HOTEL: The hotly debated FTA, covering Central America and Dominican Republic, has been signed into law. Are you fully up to speed and in compliance with CAFTA requirements - avoiding possible penalties and profit threatening duty payments? Or, are you missing out on the opportunity altogether because of the complexities of qualifying your goods? Do you want to be current on the status on on-going consultations with the Chinese relative to a broad agreement with China on textile quota issues?

Join us, along with Deputy Assistant Secretary for Textiles and Apparel Jim Leonard, Customs Attorney Jon Fee, Dr. Nancy Cassill, College of Textiles - NC State University, Sally Kay, President, The Hosiery Association and Mike Hubbard, Vice President, National Council of Textile Organizations for a comprehensive conference in order to take full advantage of these issues. US Commercial Industry Speciliasts from the CAFTA/DR countries will be available during the event. To arrange an appointment with the CAFTA/DR specialists, contact George Thomas @ 704-333-4886, ext. 223 or email: george.thomas@mail.doc.gov. GO TO: http://www.ncwta-triad.org/cafta-dr.php for details and registration form.

Unifi Looks at Sales or Merger to Stem Losses: Textile maker Unifi Inc. is considering selling to or merging with another company after losing nearly $227 million in the past five years. The company, based in Greensboro, says the proposed strategy is part of a broader study that includes potential textile business expansion by increasing offshore operations, expanding businesses unrelated to textiles or restructuring debt. Unifi won't update its progress on determining the company's future until the board approves a transaction, the company said in a statement.

Sara Lee Division will be called Hanesbrands after Spinoff: Sara Lee Corp.'s branded-apparel division said yesterday that it will be called Hanesbrands Inc. when it is spun off from Sara Lee next year. Lee Chaden, the division's chief executive, said that the new corporate name highlights its flagship Hanes brand and its focus on branded products. "Picking a new name for a 100-year-old company is a rare opportunity," Chaden said in a news release. "Our employees are very excited about this choice."

Retailers Braced For Unknown This Holiday Season: For proof consumer confidence is shaken, look no further than Gap Inc., Kohl's Corp., Coach Inc., or Federated Department Stores whose shares fell from between 18 and 23 percent since July. The trendy retailers are reportedly bracing for a harsh winter. Even mega-retailer Wal-Mart reportedly promised dramatic discounts this holiday season to help customers affected by the higher cost of gasoline, heating fuel and rising interest rates. Concerns about the impact of commodity pricing, coupled with a real-estate down turn could send cash-poor retail customers chasing promotional pricing schemes around America's shopping malls. The Standard & Poor's Retail Index dipped to a five-month low this week and is currently down over 12.5 percent since July.

Wal-Mart Establishes Private Equity Fund to Drive Women and Minority-Owned Business Growth: As part of its continuing commitment to supplier diversity and the communities it serves, Wal-Mart Stores Inc. on Monday announced that it will invest $25 million to establish a private equity fund that will directly issue equity investments in women and minority-owned business enterprises. Wal-Mart unveiled the new fund at the 2005 National Association of Investment Companies (NAIC) conference in San Diego.

Retail Review by Merrill Lynch: It may seem early for holiday but many stores have begun shipping in the first items of the season. The kids business has moved most aggressively to holiday as parents prepare for holiday photos and cards. Warmer weather in key regions may continue to dampen demand for fall product. According to Planalytics weather driven demand is estimated down 6% this week. Abercrombie & Fitch “cool” factor is still standing strong as customers willing to pay premium prices for the Abercrombie name. Hollister remains the hottest store in the teen sector with great fashion that continues to blow out at full price. Abercrombie Kids remains a favorite and has become the “must have” brand for this age group. This could really benefit the concept when parents decide to splurge for Christmas. Aeropostale top stores look outstanding with new product that offers the customer must have fashion styles including shrug sweaters for women and layered long sleeve tees for guys. American Eagle is continuing with the “Got You Covered Sale” which is offering $5 - $20 off jackets, hoodies, blazers, track jackets and down vests. Ann Taylor the sale remains the drive with the 30-50% off markdowns throughout the store. Chico’s promotions remain limited as loyal passport members continue to keep the dressing rooms full and the sales associates busy. Childrens’ Place continues to believe this holiday collection stands out among the childrens retailers as it offers the customer a little less tradition and little more fashion. Coach’s new bags continue to look good included beaded signature totes and the metallic signature collection. Banana Republic stores look good with some standout items, but lack that overall excitement that really get the consumer going. Gap the warm up for winter sale has ended but it definitely drew attention over the weekend and got the customer shopping. Gapkids overall the stores look good with some cute holiday photo outfits. Old Navy outerwear is most certainly the focus in the stores with frost free jackets remaining the item of the week. Gymboree newest collections are saleable with the more traditional holiday line and cute ballerina line. Express is one of the first adult retailers to truly set holiday with a large portion of the store devoted to holiday style. Limited crocheted sweaters along with the newest sequin embellished pants are front and center. Victoria’s Secret is beginning to break out the holiday robes and pajama sets. Limited Too stores are currently running a 40% off clearance sale as well as $25 Too bucks when spending $50 dollars. Talbots the mid season sale continues to be a focus in stores with markdowns ranging from 50-70% off.

Fall fashion features looks from “Back in Black,” the “Governess,” “Sixties,” and “Frontier.”

Hernandez Sworn In as New Trade Promotion Chief: Israel Hernandez was sworn in last week as Assistant Secretary for Trade Promotion and Director General of the US & Foreign Commercial Service at the Department of Commerce (DOC). Prior to joining the DOC, Hernandez served as Deputy Assistant to President George W. Bush and as a deputy to Senior Advisor Karl Rove. He assisted Rove in overseeing the strategic planning, political affairs, public liaison, and intergovernmental affairs efforts of the White House during the President’s first term.

US Backs Off on China Currency Issue: Statements made by Treasury Secretary John Snow after meeting recently with Chinese officials indicate that the Bush Administration is not likely to name China as a currency manipulator in an upcoming report and is trying to re-frame the domestic debate over the issue in order to mitigate the likely negative reaction from Congress.

Portman Hopeful on US-China Textile Deal: US Trade Representative (USTR) Rob Portman recently said he is “forever hopeful” that the US and China will be able to reach a comprehensive textile trade deal. Portman acknowledged that he was “disappointed” after China rejected a “very generous proposal” during talks last week in Beijing. However, he added, the negotiations brought the two sides “very close” to finalizing an agreement, and with one exception the remaining differences are not very significant. Press articles indicated that this exception is likely quota growth rates – China wanted 20% in 2007 and 30% in 2008, while the US only offered 12.5% and 14%, respectively. According to Reuters, Portman “told reporters he was not prepared to say yet if the U.S. government would push for an extension” of its ability to impose safeguard quotas on Chinese textile and apparel goods past the current 2008 expiration.

Pakistan Expected to Ask US to Lower Trade Barriers: In the wake of a massive earthquake last week, Pakistan is expected to soon ask the US to lower barriers to imports of Pakistani goods, particularly textiles and apparel, which make up about 60% of the country’s exports. It is unclear what action Washington will take on the request.

Exporters’ Textile Advisory Committee to Meet: The ITA has announced that the Exporters’ Textile Advisory Committee will hold an open meeting on November 30 in Cary, NC. The agenda includes conditions in the export marketplace, DR-CAFTA, and Office of Textiles and Apparel (OTEXA) export expansion activities. This committee provides advice to the DOC on the identification and surmounting of barriers to the expansion of textile exports and on methods of encouraging textile firms to participate in export expansion.

Bush, European Commission President Seek Successful Trade Talks: During a recent meeting with European Commission President Jose Manuel Barroso, President Bush said that the United States and the European Union (EU) want to enhance global prosperity through trade and move the Doha round of trade negotiations forward. Barroso said the EU hopes for “ambition and balanced results” at the WTO ministerial in Hong Kong not only on agriculture but other issues such as services “so that our citizens can really see the benefits of globalization.”

President Signals Intent To Sign U.S.-Oman Free Trade Agreement: President Bush notified Congress this week of his intention to sign the recently concluded free-trade agreement (FTA) between the United States and Oman. Oman is the fifth country in the Middle East and North Africa to conclude an FTA with the United States. In his notice to Congress, the President said, “Entering into an FTA with Oman will build on the FTAs that we already have [in the Middle East]… and will be an important step on the path to fulfilling my vision of developing economic growth and democracy in the Middle East and creating a U.S.-Middle East Free Trade Area (MEFTA) by 2013.”

Commerce Secretary Gutierrez Embarks on First Business Development Mission to Central America Since Passage of CAFTA: This week Commerce Secretary Carlos M. Gutierrez and 18 U.S. business executives departed for a five-day business development mission to Guatemala, Honduras and El Salvador. The mission will highlight new U.S. business opportunities and stronger trade ties with Central America. Gutierrez will meet with Central American officials and the CAFTA Presidents to begin fully implementing the trade agreement and opening the Central American market for U.S. businesses. He will also lead the business delegation at each stop in meetings with key government and business representatives, Chambers of Commerce and industry, trade associations and potential business partners. This is the first business development mission to Central America since the Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) was signed by President Bush in August.

U.S. Signs Agreement With Norway, Iceland and Liechtenstein to Facilitate Trade:
This week U.S. Trade Representative Rob Portman, Norwegian Ambassador Knut Vollebæk, Icelandic Ambassador Helgi Agustsson, and Liechtenstein Ambassador Claudia Fritsche signed two mutual recognition agreements (MRAs) covering the sectors of telecommunications equipment, electromagnetic compatibility (EMC), recreational craft, and marine equipment. These new agreements parallel the existing U.S. MRAs with the European Community. As members of the European Economic Area (EEA), the European Free Trade Association (EFTA) countries of Norway, Iceland and Liechtenstein (known collectively as the EEA EFTA States) are fully integrated into the European Community’s single market and apply the same regulations as the EU. These agreements will permit approved U.S. laboratories to conduct required conformity assessment procedures (e.g., product tests) for designated products according to EEA EFTA requirements (U.S. requirements in the case of marine equipment), and vice versa. This saves manufacturers the time and expense of additional product testing, lowers prices for consumers, and conserves regulators’ resources.

Commerce Secretary Gutierrez Says U.S. Committed to Trade Agenda: During a recent roundtable with reporters, Commerce Secretary Carlos M. Gutierrez said that the United States remains committed to advancing WTO talks and helping establish the proposed Free Trade Area of the Americas (FTAA). However, he noted that should these efforts falter, the Bush administration will continue to advance the U.S. trade agenda multilaterally and bilaterally. Gutierrez explained that progress at the upcoming WTO ministerial meeting in Hong Kong, scheduled for December 13-18, is of paramount importance to the U.S. trade agenda. Gutierrez stated that success at WTO talks in Hong Kong should translate into additional progress on the overall U.S. trade agenda, including the FTAA, where the United States hopes to work with FTAA co-chair, Brazil, to make progress. As part of the United States' efforts to expand economic ties in the Western Hemisphere, Gutierrez will lead a trade delegation of 19 U.S. companies to Guatemala, Honduras and El Salvador. The passage of CAFTA marked only the beginning of U.S. efforts to expand trade in Central America, Gutierrez observed.

Export Monitoring Proposed for Chinese Textiles Subject to Safeguards: With prospects for concluding a comprehensive US-China textile trade deal unclear after several rounds of negotiations, US importers are looking for other ways to bring more certainty to their purchases of textiles and apparel from China. One idea that has been advanced is an export monitoring system that would provide more real-time information regarding the status of safeguard quotas, which supporters say would allow importers to better manage their purchases and could reduce transshipments aimed at avoiding the quotas. Another proposal is for Beijing to set up a transparent quota allocation system so that buyers would know which companies they can purchase from and how much they can order.

New Manufacturer Identification Code (MID) Requirements for Textile and Apparel Imports: US Customs and Border Protection (CBP) has published interim amendments to the Customs Regulations relating to the country of origin of textile and apparel products. These amendments place new obligations on importers of such products that, if not complied with, may result in rejected entries and the assessment of monetary penalties. The amendments reflect changes brought about, in part, by the elimination of quotas on the entry of textile and apparel products from World Trade Organization (WTO) members. The interim regulations are effective as of October 5, 2005, but public comments will be accepted until December 5, 2005.

Cotton Subsidy Repeal Advances in Senate: The Senate Committee on Agriculture, Nutrition, and Forestry recently approved elimination of the Step 2 cotton subsidy program, which provides for payments to US cotton and textile producers.

Ex-Im Bank Sub-Saharan Africa Advisory Committee to Meet: The Export-Import (Ex-Im) Bank’s Sub-Saharan Africa Advisory Committee will hold an open special meeting on November 16 in Washington, DC. The agenda for this meeting is expected to include: the introduction of the 2006 Sub-Saharan Africa Advisory Board members; an update on the African Growth and Opportunity Act (AGOA); discussions of the 2005 committee recommendations; an update on the FY 2005 business development efforts in the region; and a report on 2006 International Business Development strategies.

The contents printed in this document are informational in nature. They are gathered from various industry sources and do not necessarily reflect the views and/or actions of THA.

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