Wednesday, June 20, 2007
 This edition of the Hosiery Insider
is sponsored by Fiber & Yarn Products
Join Us in Welcoming Summer Intern Mallory Foushee: Mallory is a Marketing and Brand Management student at NC State University’s College of Textiles. She will be working with THA staff until mid August.
2007-2008 THA Membership Dues Renewal Notices: Renewal notices for the 2007-2008 THA Membership Year have been mailed. Please keep an eye out for your company’s renewal notice and submit your membership dues to THA in a timely fashion, please.
New Service to THA Members – Products Law Advisory Service: The American Apparel & Footwear Association (AAFA) and THA announce a new service for their respective memberships – a service focused on advising members about California’s Proposition 65 and other relevant product law issues. A letter to THA member contacts was issued June 13. If you are a THA member and would like a copy of the letter, visit THA’s Member Section of the website at http://www.hosieryassociation.com/Members/home.asp and log in.
New Service to THA Members: Consumer Insights on Legwear: The Hosiery Association (THA) is pleased to announce a new member only driven service which addresses the various types of legwear consumers purchase as well as why they purchase them. In addition to the top line government production and shipment data, the consumer insights portion of the statistical report features ten specific questions developed by the Task Force. A demographic analysis of the over 30,000 consumers who participate in the study will be featured along with top line retail sales figures. The information will be available on a semi-annual basis. For further details please contact THA at 704.365.0913 or email at info@hosieryassociation.com.
Register NOW for Environmental Issues Seminar June 27: 8:00 am to 5:30 pm
Fashion Institute of Technology, New York City. THA members will receive AAFA member discount to attend this program.
Highlights of the seminar will include:
• Training on the new AAFA Restricted Substances List
• Understanding the new European Chemical (REACH) registration requirements
• Information on how to approach California Proposition 65
Suggested attendees:
• Plant Managers & Supervisors
• Environmental, Health & Safety Staff
• Corporate Counsels
• Corporate Social Responsibility Staff
• Corporate R&D Staff
For more information contact Sally Kay at sally.kay@hosieryassociation.com or
Steve Lamar at slamar@apparelandfootwear.org.
Chapter News
AL Chapter Golf Tournament: AL Chapter’s Annual Scholarship Golf Tournament will be held Thursday, October 4 at Terrapin Hills in Fort Payne, AL. For further information, please contact Jody Goggans at jgoggans@prewettmills.com.
CHA Chapter Supplier Luncheons: The next supplier luncheon has been tentatively scheduled for Thursday, August 23.
 Hosiery News-More Frequent, More Flexible. You spoke and we listened. According to the recent membership survey, Hosiery News is now distributed monthly and in electronic format only. This new format affords readers more flexibility in obtaining the information they need on a timelier basis and advertisers can quantify the broader exposure they receive through monthly reports. Additionally, THA is focused on cost efficient and eco-environmentally ways of conducting business. As we work to verify our distribution database is accurate, please contact Vicki Camp (email: vicki.camp@hosieryassociation.com) to ensure that you, your company representatives and customers are receiving each of these communications tools.
Finish Line Inc. agreed to acquire Genesco Inc., a retailer of footwear and accessories, for $54.50 a share in cash, or about $1.5 billion, the companies said Monday. The transaction, expected to be completed in the fall, comes after Genesco twice rejected offers to be acquired by rival Foot Locker Inc., most recently turning down a revised $1.37 billion bid from Foot Locker late last month.
Kent Manufacturing formally unveiled a bold new brand, KENTWOOL, for the South Carolina-headquartered company during its recent annual Board of Directors meeting. The highly innovative textile company, which has been successfully in business for 164 years, also presented its new global vision of becoming the premier wool innovation and manufacturing company in the world. United Yarn to Acquire SANS Colorcord™ and Fiberbrite™ Products
SANS Fibers, a manufacturer of specialty polyester and nylon yarns located in North Carolina, U.S.A., and Capetown, South Africa, recently announced it has agreed to sell its Colorcord™ and Fiberbrite™ business, including inventories, to United Yarn Products Co. of Wayne, NJ, U.S.A. Colorcord™ and Fiberbrite™ are solution dyed high tenacity polyester products covering a range of 17 colors. According to SANS Fibers, the move will enable the company to concentrate its efforts on its core business areas.
Retailers See Strong Sales During May
Despite the 3.8 percent rise in gasoline (the biggest increase in more than a year), retail sales significantly surged for the first time in 16 months. According to the Commerce Department, sales rose 1.4 percent during May. Department and specialty stores enjoyed an especially good month with increased sales of 1.3 percent in department stores and 2.7 percent in the specialty clothing stores. Consumer spending accounts for two-thirds of the economy and analysts believed that increasing gasoline prices would negatively impact this area. However, after last month’s performance, some fears should be put at ease. – (Washington, Associated Press)
According to the Nation Federation of Retailers American consumers spent $9.9 billion on Father’s Day gifts. That is $5 billion less than what was spent on Moms on Mother’s Day. The average cost per gift for Dad was $98.38. Over one third of Dads received clothing and 43 percent were treated to a restaurant meal. 70 percent received a card.
ASAPSHOW – Why Exhibit at ASAP? ASAP gives the apparel companies the best chance to meet top US retailers and brands who are seeking alternative sourcing options. ASAP’s reputation in the apparel industry boasts the highest number of attendees, and a diverse number of countries. ASAP receives the most endorsements from overseas governments and works directly with them to organize their respective country pavilions that represent the “Best of…” each country and buyers know this. The next show will take place on August 26-29 at the Venetian Grand Ball Room in Las Vegas, NV. For additional information, go to www.asapshow.com or email info@asapshow.com.
 Korea Agrees to Talks on Modifying FTA with U.S. - U.S. and Korean officials will meet in Seoul later this week to discuss revising their bilateral free trade agreement to incorporate the elements of the recent trade policy deal between U.S. Republicans and Democrats. A statement from Korea’s ministries of finance and foreign affairs indicated that Korea will decide whether to accept changes to the FTA on issues such as labor, the environment, intellectual property rights and port security based on the outcome of this week’s talks.
China Announces More Export Rebate Cuts. China’s Ministry of Finance has announced that as of July 1 it will eliminate or reduce rebates of export taxes for thousands of additional products. The ministry will lower the rebates for another 2,268 products, including textiles and apparel, footwear, toys and plastic goods. These cuts, like those the ministry has made on two other occasions this year, are designed in large part to help slow the growth of China’s trade surplus, which has surged to record levels this year and is causing political problems for Beijing with some of its trading partners.
Rwanda, Burundi to Join East African Community. Press reports indicate that as of July 1 Rwanda and Burundi will formally join the East African Community, which is currently composed of Kenya, Uganda and Tanzania. The two new members will become part of the EAC’s customs union, meaning that trade in goods among the five countries will be duty-free. The bloc has plans to create a common market by 2010 and is considering further economic and political integration as well.
EU, China to Update Trade and Economic Relations Framework. China and the European Union have agreed to begin negotiations on updating their 1985 framework agreement on trade and economic relations. The decision came during a meeting between EU Trade Commissioner Peter Mandelson and Chinese Commerce Minister Bo Xilai, who also discussed issues such as steel, poultry and IPR. The two officials also discussed Chinese textile and apparel exports to the EU, which are scheduled to again become unrestricted at the end of 2007. Mandelson indicated that the EU will continue its automatic licensing system through 2008 so it can continue to monitor market developments and discuss with Chinese authorities any action that needs to be taken to ensure a smooth transition back to normal trading.
Andean Community to Negotiate Association Agreement with EU. The leaders of the four member countries of the Andean Community have agreed to negotiate an association agreement with the EU, a wide-ranging pact that aims to increase trade, political and other ties between the two blocs. The decision came despite a debate concerning the scope of the agreement, with Colombia and Peru pushing for more liberalization and Ecuador and Bolivia insisting on special conditions to aid their struggling economies. The talks are expected to last two or three years.
U.S. Launches Investment Treaty Negotiations with Rwanda
The Office of the U.S. Trade Representative announced last week that the U.S. and Rwanda have begun formal negotiations toward a bilateral investment treaty. A USTR press release noted that this is the first time in nearly a decade that the U.S. has negotiated a BIT with a sub-Saharan African country. The U.S. currently has five BITs in force in the region (with Cameroon, the Democratic Republic of Congo, Mozambique, the Republic of Congo and Senegal) and 40 worldwide.
Actions in Congress Suggest Changes in U.S.-China Trade Policy
New developments in the U.S. Congress may significantly affect the future of U.S. trade policy toward China. Whether companies are exporting or importing to or from China or are seeking opportunities in China’s expanding market, it is essential to keep abreast of U.S. legislative changes that may affect the landscape of trade opportunities with China. Last week a bipartisan bill that aims to combat undervalued foreign currencies was introduced in the U.S. Senate. The Currency Exchange Rate Oversight Reform Act of 2007 includes a range of new tools to address currency problems, including through the International Monetary Fund and the World Trade Organization. Of particular concern, however, are provisions that could result in significant increases in antidumping duties on goods from countries whose currency policies are deemed a high priority.
DOL Offers Funds for Child Labor Programs in Ten Countries
The Department of Labor has announced the availability of funds to be granted by cooperative agreements to one or more qualifying organizations and/or associations to combat exploitative child labor in the following countries.
• Bolivia – up to $3.34 million
• Cambodia – up to $4 million
• Colombia – up to $5.1 million
• Democratic Republic of the Congo – up to $5.5 million
• Dominican Republic – up to $4 million
• Indonesia – up to $5.55 million
• Morocco – up to $3 million
• Philippines – up to $5.5 million
• Togo – up to $5 million
• Uganda – up to $5.5 million
Projects funded under this solicitation will seek to sustainably withdraw and prevent children from entering exploitative labor through the provision of direct educational services and other project interventions. Projects will also seek to build capacity in target countries to eliminate exploitative child labor and promote educational alternatives for children. Projects funded aim to complement and expand upon existing projects and programs aimed at eliminating exploitative child labor, particularly the worst forms of child labor, and improving basic education in the target countries. Applications must be received by July 25.
Canada Wraps up FTA with European Bloc. Canadian international trade minister David Emerson recently announced that Canada has concluded negotiations on an FTA with the European Free Trade Association, which comprises Iceland, Norway, Switzerland and Liechtenstein. A background document stated that the FTA is expected to be a “first-generation” agreement with an emphasis on tariff elimination and is not expected to include substantial new obligations in areas such as services, investment and intellectual property.
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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