Cheap is the new chic. Swedish retail giant and knockoff wiz H&M announced Viktor & Rolf will produce a one time collection for both men and women.
It is scheduled for a November delivery date in 24 countries. The Dutch design team of Viktor Horsting and Rolf Snoeren hope to repeat the wild successes of past bargain-priced Karl Lagerfeld and Stella McCartney collections. The announcement came as a surprise since Miuccia Prada was widely thought to be the next big name designer in line to partner with H&M.

As an indication that women over 60 are becoming an important beauty care consumer group L'Oréal Paris signed actress Diane Keaton to a multi-year contract. The Oscar winner will represent its new Age Perfect Pro-Calcium skin care line which will launch in July. It's the first L'Oréal Paris brand to target women aged 60 and older in the U.S. Although the terms of the agreement were not disclosed it is believed Keaton will earn about 1 million dollars a year for lending her smile to the brand.

Paris Hilton's $10,000 dollar Mother's Day gift bag was stolen when a delivery man put it down to open the gate to Kathy Hilton's home. It contained Christian Dior shoes, sunglasses, handbags and perfume. A car just drove by and a passenger managed to snatch it. The elder Hilton will just have to settle for the thought that counts.

Tommy Hilfiger is said to be willing to put up $20 million dollars of his own money to produce a film about the fashion industry.
The plot involves an African American woman and her aspirations to become a fashion designer. The lead is expected to go to a big name star.
It is a topic Hilfiger knows something about. Forced to close his first jean store after it went bankrupt the designer said goodbye to his hometown of Elmira New York and headed to the Big Apple in the late seventies. He left penniless with nothing but a dream. Within a few short years he took the fashion world by storm with his Tommy Brand. Hilfiger recently sold his company for $1.6 billion dollars.

Tax Bill Is Good For Textile Manufacturers

  The $70 billion tax relief package that President George W. Bush will sign into law this week should provide some help to the beleaguered US textile industry. Provisions granting more liberal treatment of investment credit and capital gains and investments in plant equipment will be a source of funds to help the industry modernize and compete with overseas manufacturers.

The new bill extends for 10 years many of the provisions contained in the Jobs and Growth Act of 2003. Among those provisions was an increase of the amount small business may expense from $25,000 to $100,000. It also increased from $200,000 to $400,000 the amount of total investment credit a business can take in a year.

As the bill cleared Congress, Jim Chestnutt, president and CEO of New York City-based National Spinning Co. Inc. and chairman of the Washington-based National Council of Textile Organizations, saw it as a key to enhancing the US textile industry’s competitiveness by generating funds for investments in plants and equipment. He said: “This legislation provides important incentives for continued investment in US textile manufacturing that will help ensure the future competitiveness of our industry. Extending the current lower rates on capital gains and dividends and maintaining the current levels of expensing will have a positive impact on the US textile industry and will help stabilize our industry against job losses caused by low-cost imports from China.”

U.S. , Ecuador Postpone Further FTA Discussions
Following recent action by the government of Ecuador to revoke U.S.-based Occidental Petroleum Company’s oil production contract, discussions on a free trade agreement between Ecuador and the U.S. have been put on hold .

U.S. Submits Draft Negotiating Text on Textile Labeling Requirements: The U.S. submitted to WTO members this week a draft negotiating text on reducing non-tariff barriers to trade in textiles, apparel, footwear and travel goods. The U.S. sees this text as a positive way for members to reduce the diversity of labeling approaches in these sectors in order to save manufacturers time (i.e., to avoid delays to market) and money (i.e., to minimize the costs of varying labeling schemes). The aim is to preserve the ability of regulators to require certain information to be provided on such goods in order to inform and protect consumers, while minimizing the costs of providing this information. The draft expands on a U.S. concept paper circulated last December advocating more common approaches to labeling as a way to benefit exporters and consumers of textiles, apparel and footwear. The draft text includes the following proposals. WTO members will not require information on permanent labels or marking beyond (1) country of origin, fiber content, care instructions and information necessary for consumer safety with respect to textile and apparel goods, and (2) country of origin with respect to footwear and travel goods. Members will ensure that, at their discretion, manufacturers may provide additional information on permanent labels or markings with respect to all such goods. Members remain free to require that reasonable additional information of use to consumers – such as information regarding material content for footwear and travel goods – be provided on goods or packaging through non-permanent means. Upon entry into force of technical regulations and conformity assessment procedures, members should afford sympathetic consideration to requests for flexibility to adapt to modifications of labeling requirements, allowing for both old and new labels to be accepted during the transition period.

Mandelson Says EU Needs to Formulate New Asian Trade Policy
European Union Trade Commissioner Peter Mandelson said this week that EU trade policy for Asia needs to adapt to the dramatic changes in that region. Speaking at a meeting hosted by the Europe-Malaysia Chamber of Commerce in Kuala Lumpur, Mandelson argued that the EU needs to look beyond China to the whole Asian region in formulating a new European trade strategy. He welcomed the publication of a study by the EU-ASEAN Vision Group that sets out a range of options for developing EU-ASEAN trade, including the possibility of an FTA between the two regions.

U.S. Restores Diplomatic Relations with Libya, Will Remove Trade Restrictions
Secretary of State Condoleezza Rice recently announced that the United States is restoring full diplomatic relations with Libya. As part of this effort, the U.S. intends to remove Libya from the list of designated state sponsors of terrorism, which will eliminate restrictions on exports to Libya of dual-use items as well as defense articles and services on the U.S. Munitions List. This action could take place in late June

U.S., Vietnam Reach Agreement on WTO Accession
The U.S. and Vietnam have reached agreement in principle on a bilateral market access accord that could clear the way for Vietnam’s accession to the WTO. According to a press statement from the Office of the U.S. Trade Representative, the agreement will substantially lower Vietnamese tariffs on U.S. industrial and agricultural products and remove non-tariff barriers currently faced by U.S. service providers in Vietnam. The agreement will also continue the process of political and economic reform in Vietnam, the USTR said, which includes increased transparency in commercial activity and adherence to the rule of law. The formal signing of the bilateral agreement will take place once both sides have undertaken the required legal consultations. According to a USTR fact sheet, the bilateral agreement includes the following provisions The U.S. will remove all remaining quotas on textile and apparel imports from Vietnam but will have the ability to re-impose quotas under certain circumstances. If the U.S. believes that Vietnam has not complied with its obligation to eliminate prohibited subsidies for the textile and apparel sector, it will be able to request consultations with Vietnam. If the consultations do not resolve the dispute, it would be referred to a WTO arbitrator. If no decision is reached within 120 days, or if the arbitrator finds that Vietnam is in violation, the U.S. will be able to immediately re-impose quotas. However, this process will only be available for the first 12 months after Vietnam’s WTO accession. There is no safeguard process like the one provided in the bilateral agreement on China’s WTO accession.

CBP Establishes New Port of Entry in Tri-Cities Area
U.S. Customs and Border Protection has issued a final rule, effective June 14, establishing a new port of entry in the Tri-Cities area in the states of Tennessee and Virginia, including the Tri-Cities Regional Airport in Blountville, Tenn., and terminating the user-fee status of that airport. The new port of entry includes the same geographical boundaries of the current CBP User Fee Port No. 2082, which encompasses Sullivan County, Tenn.; Washington County, Tenn.; and Washington County, Va.

Government Procurement Waivers Issued Under DR-CAFTA. The USTR has issued a determination, effective May 16, regarding a waiver of discriminatory government purchasing requirements with respect to goods and services covered by DR-CAFTA Chapter 9. Specifically, the USTR has determined that Honduras and Nicaragua are countries that will provide appropriate reciprocal competitive government procurement opportunities to U.S. products and suppliers of such products. As a result, the USTR has determined to waive, with respect to eligible products of Honduras and Nicaragua and suppliers of such products, the application of any law, procedure or practice regarding government procurement that would, if applied to such products and suppliers, result in treatment less favorable than that accorded to (a) U.S. products and suppliers of such products and (b) eligible products of another foreign country or instrumentality that is party to the WTO Agreement on Government Procurement and suppliers of such products.

Ways and Means Approves Draft Oman FTA Legislation
The House Ways and Means Committee has approved draft legislation to implement the U.S.-Oman Free Trade Agreement by a vote of 23-11. This FTA would immediately eliminate duties on all U.S. commercial and industrial goods and 87% of U.S. agricultural products entering Oman.