The Impact of the Andean Trade Preference Act Twelfth ... - USITC

cotton, wool and man-made fiber garments, speed to market, and quality goods 216 haveattracted U.S. apparel and textile companies seeking alternative suppliers and rapidreplenishment. 217 Colombia’s integrated mills produce an estimated 850 million squaremeters of cotton-based fabrics, yarn, and synthetic and wool materials. 218 Since ATPDEA,Colombia’s garment producers have increasingly shifted from apparel assembly to fullpackageservices and have focused on new product development and fashion niches toincrease their competitiveness vis-à-vis lower-cost Asian producers. 219Colombia has about 10,000 textile and apparel firms, of which more than half are small ormid-sized companies. 220 Textile manufacturing is concentrated in a few large firms, whereasclothing production is shared among hundreds of small and mid-sized companies. 221Industry sources estimate that Medellin and the surrounding area of the state of Antioquiaaccount for 40 percent to 50 percent of Colombia’s fibers, fabrics, and apparel production.An estimated 100,000 direct operators generate much of Colombia’s $50 million monthlytextile and apparel exports to the United States. 222ATPDEA has prompted much of the growth in Colombia’s textile and apparel exports to theUnited States since 2002 and has boosted the country’s cotton consumption. 223 With cottondemand greatly outstripping supply, Colombian firms depend heavily on imported cotton,96 percent of which came from the United States in 2005. 224 In 2005, U.S. exports of textilesand apparel to Colombia rose 4 percent over the 2004 level to $150 million, led by a 13percent increase in U.S. exports of fabric. 225216 Josef de Coster, “Colombia’s Textile Market: Trapped by Global Change,” International Market News,Oct. 10, 2005, found at http://www.tdctrade.com/imn/05101002/clothing182.htm, retrieved May 30, 2006;Arturo Rodríguez, “Colombiatex de las Americas 2006,” found athttp://www.tc2.com/newsletter/arc/020806.html, retrieved May 30, 2006; and Maria Clara Munera Velez(Market Access Representative, Confecciones Colombia, S.A.), e-mail message to Commission staff, June 5,2006.217Both U.S. apparel and textile producers have production in Colombia. Invista (formerly part of theDupont Corporation), a producer of Lycra, established operations in Colombia 25 years ago because ofColombia’s vertically integrated textile and apparel sector and its proximity to the United States. Invistaspins Lycra yarn in the United States and ships it to Colombia, where it is wrapped on beams and used inwarp knitting to produce apparel that is exported to the United States. Mary K. Vane (Director, Invista),telephone interview by Commission staff, Washington, DC, June 1, 2006.218 Arturo Rodríguez, “Colombiatex 2005,” found athttp://www.colombiatex.com/2005/ingles/industry.htm, retrieved May 30, 2006.219Josef de Coster, “Colombia’s Textile Market: Trapped by Global Change,” International Market News,Oct. 10, 2005, found at http://www.tdctrade.com/imn/05101002/clothing182.htm, retrieved May 30, 2006.Current brands made in Colombia include Ralph Lauren, Oscar de la Renta, Liz Claiborne, Nine West,Nautica, Tommy Hilfiger, DKNY, and others. See “ColombiaModa 2005,” found athttp://www.colombianmoda.com/ingles/medellin.htm, retrieved May 30, 2006.220Arturo Rodríguez, “Colombiatex de las Americas 2006,” found athttp://www.tc2.com/newsletter/arc/020806.html, retrieved May 30, 2006.221EIU, “Country Profile Colombia - Main Report: September 1, 2005 - EconomicSectors: Manufacturing,” found at http://portal.eiu.com/report_dl.asp?issue_id=1479433533&mode=pdf,retrieved May 31, 2006.222 Arturo Rodríguez, “Colombiatex de las Americas 2006,” found athttp://www.tc2.com/newsletter/arc/020806.html. retrieved May 30, 2006.223 USDA, Foreign Agricultural Service, “Colombia Cotton and Products Annual 2006,” GAIN Report#CO6005, May 1, 2006.224Ibid. The United States is expected to continue to be the principal supplier of cotton for Colombia’stextile and apparel industry as cotton consumption is expected to grow 3.3 percent annually in 2005-06because of the growth of textile and garment exports.225 Based on official statistics compiled by the U.S. Department of Commerce.3-24