Final TPP Deal Contains Limited Yarn-Forward Exceptions; NCTO Satisfied

The final Trans-Pacific Partnership (TPP) reflects some of the key priorities of the U.S. textile industry by allowing limited exceptions from the prevailing yarn-forward rule of origin and by including tariff phaseouts for sensitive apparel items of 10 to 12 years. One of the main exceptions to yarn-forward is an “earned import allowance” program for cotton pants made in Vietnam from third-country fabric, which was changed at the last minute to shield Mexico from some of the increased competition it...