leg update q 42012

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 we wear our mission LEGISLATIVE UPDATE Fourth Quarter 2012.  Americans re-elected Barack Obama as President and Joe Biden as Vice President on November 6, 2012. Election night capped a seemingly endless political season marked (and marred) by negative campaigning, record-setting political expenditures, and memorable political gaffes and “zingers.” M to the chagrin of a campaign-weary public, it also signaled the beginning of the 2014 mid-term and 2016 Presidential races, as pollsters, politicians, and pundits began to speculate on the prospects of likely candidates. Many are also trying to understand the origins of President Obama’s electoral victory as well as the causes of Governor Mitt Romney’s electoral defeat to learn lessons for future campaigns and also gure out how the election will affect the agenda for the coming months. Several themes from the election seem to have emerged: First, although a huge majority of Americans remain deeply concerned over the economy, and the lingering high unemployment rates and budget decit, a slim majority apparently felt or trusted President Obama  would do a better job of steering back the nation to more sustainable economic recovery. Not surprisingly, policy discussions in the wake of the election have focused almost exclusively on a range of looming economic and budget issues. Second, the nation remains deeply divided along both ideological and partisan lines. President Obama’s popular and electoral margin of victory in 2012 was less than i n 2008. Although Republicans still control the House, they will do so with a smaller majority. Senate Democrats actually widened their majority control, but they are doing so with the help of several Independents and freshmen who were surprisingly (and in some cases narrowly) elected from states which strongly supported Governor Mitt Romney. Third, there seems to be a collective national mood of being fed u p with Washington. Debilitating partisan gridlock has prevented Congress from addressing many serious issu es. Congressional action for much of the past years has been – with several notable exceptions – conned to passing stop gap measures or extensions to prevent deadlines and other “action-forcing” events from actually forcing action. While some have pointed to the 112th Congress as a “do-nothing” Congress, others have perhaps more accurately labeled it the “kick-the-can-down-the road” Congress. Fourth, many are also crediting the Obama campaign’s outreach to a number of groups – such as women,  youth, and Hispanics – as contributing heavily to the President’s successful re-election effort. Policies that address these issues and interest groups – such as immigration reform – are likely to play a big role in the second term of the Administration. Finally, with 2012 being the 3rd election in a row to elect a large freshman class, the 113th Congress will feature many Representatives and Senators who are relative newcomers – either to Washington or to public policy. At a minimum, this means that the next Congress will face a relatively steep learning curve as newly elected Members have to simultaneously master arcane policy issues while learning the location of the nearest bathrooms. For the remainder of 2012, Washington policy makers will focus on two major areas – post-election transition and the “lame duck” session. Throughout November, Congressional leaders will hold elections and make leadership decisions to determine which Members will lead their respective caucuses, campaign committees, and Congressional ®

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7/30/2019 Leg Update q 42012

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 we wear our mission

LEGISLATIVE UPDATE

Fourth Quarter 2012.

 Americans re-elected Barack Obama as President and Joe Biden as Vice President on November 6, 2012.Election night capped a seemingly endless political season marked (and marred) by negative campaigning,record-setting political expenditures, and memorable political gaffes and “zingers.” M to the chagrin of acampaign-weary public, it also signaled the beginning of the 2014 mid-term and 2016 Presidential races, aspollsters, politicians, and pundits began to speculate on the prospects of likely candidates.

Many are also trying to understand the origins of President Obama’s electoral victory as well as the causesof Governor Mitt Romney’s electoral defeat to learn lessons for future campaigns and also gure out how the election will affect the agenda for the coming months.

Several themes from the election seem to have emerged:

First, although a huge majority of Americans remain deeply concerned over the economy, and the lingeringhigh unemployment rates and budget decit, a slim majority apparently felt or trusted President Obama

 would do a better job of steering back the nation to more sustainable economic recovery. Not surprisingly,policy discussions in the wake of the election have focused almost exclusively on a range of loomingeconomic and budget issues.

Second, the nation remains deeply divided along both ideological and partisan lines. President Obama’spopular and electoral margin of victory in 2012 was less than in 2008. Although Republicans still control

the House, they will do so with a smaller majority. Senate Democrats actually widened their majority control, but they are doing so with the help of several Independents and freshmen who were surprisingly (and in some cases narrowly) elected from states which strongly supported Governor Mitt Romney.

Third there seems to be a collective national mood of being fed up with Washington Debilitating partisan

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Third there seems to be a collective national mood of being fed up with Washington Debilitating partisan

committees. Such Congressional reorganization is routine each year - even when neither chamberundergoes a change in partisan control - to account for retirements, electoral defeats, and intra-party challenges. The Obama Administration will also undergo transition as political appointees jockey for new 

 jobs or depart. Several key Cabinet ofcials, including Secretary of State Hillary Clinton and U.S. TradeRepresentative Ron Kirk, have already announced they will be leaving their posts at the end of the rstterm. The identity and timing of such individuals’ replacements, as well as the effect on policies and otherpersonnel, is currently a hot topic of discussion in Washington.

Policy makers are also expected to address, or attempt to address, a wide range of issues during the lameduck session. Senate Majority Leader Harry Reid (D-NV) has already released a list of about 25 items he

 would like the Senate to address during the period between the election and the end of the year. Whilethere probably will not be time to deal with most of these items, and, indeed, it is unclear just how long

the lame duck session will last, it is a fair bet that Congress will resolve some issues since several weredeliberately punted to this period so they could be addressed after the election. Much of the focus of thelame duck will be on the much-hyped and very serious Fiscal Cliff – a package of expiring and expired taxmeasures, automatic spending cuts, and entitlement provisions. Economists are now warning that inactionon these Fiscal Cliff issues will push the economy back into recession and drive unemployment back over 9percent.

 With an eye toward these warnings and the deep public dissatisfaction over inaction in Washington,political leaders have all indicated their willingness to work together to address the Fiscal Cliff issues.

Conventional wisdom, buoyed by the cautious statements of several political leaders, is Congress willpass measures to temporarily patch these issues until early 2013, when a “grand bargain” can be workedout. Republicans are signaling they are willing to consider revenue enhancements – such as tax increases– while Democrats are suggesting they may be willing to engage in more serious entitlements reformsas a way to help close yawning federal budget decits. It remains to be seen whether this post-electioncompromise rhetoric will convince a skeptical public, settle a skittish stock market or, more importantly,translate into real action.

Besides the scal cliff items, a number of trade measures may be queued up for action. Topping the list

is long-delayed legislation granting Permanent Normal Trade Relations (PNTR) to Russia and Moldova.Congress may also take up a package of miscellaneous tariff bills (MTBs) consisting of new proposals forduty relief as well extensions of hundreds of expiring provisions. Although the MTB process is supposed to

 be non-controversial, it has been mired in recent years by an unfortunate linkage to earmarks. Unstickingh MTB i l bi i f f h i f h

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INTERNATIONAL TRADE

Issues Description Status / Next Steps AAFA

Position

Contact

CAFTA-DR Permanent reciprocal free tradeagreement with CAFTA-DRcountries.

Eorts underway to x problemswith Dominican 2:1 programand extend Nicaraguan TPLs.Fixes enacted on sleep pants,waistbands, and short supply

system eective 10/12.

Supportedxes, Urgingextension of Nicaragua 2:1

Steve Lamar

Colombia FTA Permanent reciprocal free tradeagreement with Colombia.

Entered into force 5/12. AndeanTrade (ATPA) no longer in forcewith respect to Colombia.

Supported FTA Steve Lamar

Korea FTA Permanent reciprocal free tradeagreement with Korea

Entered into force 3/12. Supported FTA Steve Lamar

Panama FTA Permanent reciprocal free tradeagreement with Panama.

Entered into force 10/12. Supported FTA Steve Lamar

Trans PacicPartnership (TPP)

Regional free trade agreementbetween U.S. and 10 key Asian andLatin American countries, includingVietnam, Mexico, and Canada.

14th round of talks occurred9/12. 15th round in NZ 12/12.Canada and Mexico added 10/12.Japan request pending. USwants talks completed in 2013.

Supportsnegotiation of commercially-meaningfulagreement.

Steve Lamar

Aordable Footwear

Act

Eort to eliminate the hidden,

regressive tax on footwear.

Reintroduced in Senate in 05/11

and reintroduced in House 7/11

Supports AFA Nate Herman

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INTERNATIONAL TRADE

Issues Description Status / Next Steps AAFA

Position

Contact

African Preferences(AGOA)

Trade preferences for duty freeaccess for garments made in Africa.

Congress approved legislation8/12 to extend 3rd country fabricprovision to 2015. Program,including 3rd country fabricprovision, expires 2015.

Supportsrenewal

Steve Lamar

Caribbean BasinPreferences (CBTPA)

Preference program for CaribbeanBasin countries not party to CAFTA-DR

Extended until 2020. Renewaloccurred in 2010 Haiti legislation

Supportsrenewal

Steve Lamar

Generalized System of Preferences (GSP)

Duty preferences (not aectingapparel or footwear)

Renewed 10/11 as part of FTAlegislation. Renewal retroactiveto 1/11. Expires mid-2013.

Supportsrenewal

Steve Lamar

GSP & Travel Goods New initiative to make travel goods

eligible for benets under theGeneralized System of Preferences(GSP) program

Legislation introduced 8/12.

AAFA is working with a coalitionof associations to generatesupport in Congress for theinitiative.

Supports Nate Herman

Haiti Preference program for Haitianapparel exports to the UnitedStates.

Extension and expansion of Haititrade programs approved 5/10 asPL. 111-171.

Supports Haitidevelopmentandreconstructioneorts

Steve Lamar

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INTERNATIONAL TRADE

Issues Description Status / Next Steps AAFA

Position

Contact

Misc. Tari Bills (MTB) Package of miscellaneous tari andtrade provisions, including technicalcorrections and duty suspensions

Linkage to earmark issuemakes 2012 progress dicult.Reforms and action possible in2012. Current MTBs expire endof 2012. Action in lame-duck

uncertain.

Supportsapproval of MTBs

Nate Herman

Philippines Trade SAVE Act (S.1244/HR 2387)

Preference program for thePhilippines using U.S.-made textiles

Reintroduced in 112th Congress Supports MarieD'Avignon

Trade PreferenceReform

Eorts underway to conductwholesale reform of US tradepreference programs, includingAGOA, GSP, and Andean.

Ad-hoc business/NGO coalitionpushing for harmonized andsimplied program. Eorts mayrecommence in 2013.

Supportsreform

Steve Lamar

U.S. OUTDOOR ACT(H.R. 2071/S. 704)

Initiative to eliminate duty onperformance outerwear

Reintroduced in 112th Congress.Could create funding mechanismfor TC2.

Supports Nate Herman

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INTERNATIONAL TRADE

Issues Description Status / Next Steps AAFA

Position

Contact

Cotton/Wool TrustFund

Targeted duty elimination andsupport programs to benettailored clothing and woven dressshirt industries

Legislation to renew lapsedcotton program and xunderfunding in wool programstalled in 2010. Renewedcommitments by Senate

leadership to advance these billsmade in 112th Congress.

Supportsrenewal/Fix

Steve Lamar

Export Financing Elimination of statutory and legacyrestraints on US Export-ImportBank providing nancing to UStextile exports as part of WesternHemisphere supply chain.

Legislation approved byCongress to reauthorizethe Export-Import Bank7/12 included textile specicprovisions. Implementation nowbeing pursued.

Supportedlegislation.Workingwith Bank toimplementlegislativeprovisions.

Nate Herman

Trade PromotionAuthority (S. 98)

Framework for creating andexpediting the passage of new tradeagreements.

Lapsed. Renewal unlikely innear future. Renewal legislationintroduced in 2011.

Supportsrenewal

Steve Lamar

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INTERNATIONAL TRADE

Issues Description Status / Next Steps AAFA

Position

Contact

China Currency Increasing US and internationalpressure on China to revaluecurrency and allow currency to oat.

Legislative eort to empowertrade remedy actions basedon currency passed Senate in10/11 but has stalled in House.Administration continues topush China but refuses to cite itas currency manipulator.

Monitoring.UrgingCongress andadministrationto focus eortsinstead onreal issuesimpactingU.S./Chinarelationship.

Nate Herman

World TradeOrganization (WTO)Doha Round

Multilateral talks to reduce andeliminate tari and non-tari tradebarriers.

Negotiations collapsed in2008. Eorts under way to seehow talks can be restarted andcompleted.

Supportsambitiousmultilateralaccord.

Nate Herman

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MARKET ACCESS

Issues Description Status / Next Steps AAFA

Position

Contact

Argentina ImportRestrictions onApparel/Footwear

Argentinian import restrictions onapparel and footwear including,non-automatic import licensing.

AAFA is working with multi-industry group to addressissue with the U.S. and othergovernment. The U.S. initiated aWTO case against Argentina 8/12.

Opposesbarriers onapparel andfootwear.Supports theU.S. in itscase againstArgentina.

MarieD’Avignon

Brazil Cotton Dispute Brazilian threat to impose punitiveduties on imports of US-madeproducts, including textile andapparel to impose WTO-approvedretaliation for US cotton subsidies.

US/Brazil reached temporaryagreement. No punitive dutiesif US pays $140 million/year toBrazil agriculture. US must endsubsidies, as part of 2012 FarmBill, or duties could be imposed.

Opposes anypunitive duties.Urges long-term resolution

Nate Herman

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MARKET ACCESS

Issues Description Status / Next Steps AAFA

Position

Contact

Brazil Footwear Anti-Dumping Duties/Customs Restrictionson apparel/footwear

Brazilian trade barriers in theform of burdensome customsprocedures, non-automatic importlicenses, certicates of originrequirements, inspections, andtrade remedies.

In 3/10, Brazil imposed dumpingduties on Chinese footwear for5 years. In 2011 Brazil imposedadditional burdensome importrequirements such as non-automatic import licensingand new certicate of originrequirements. In 9/12, Brazilannounced import tari increaseson 100 HTS lines includingfootwear parts.

Opposesdumpingduties andnew customsrestrictions.

MarieD’Avignon

Mexican China AD Punitive anti-dumping (AD) dutiesimposed on Chinese textiles,apparel, and footwear importedinto Mexico

Dumping duties removed 12/11.In its place, Mexico and Chinahave instituted an agreement onreference prices for footwear.Mexico has also instituted somesort of reference pricing schemefor Chinese apparel.

Supportedremoval of AD duties andopposes newduties and newrestrictions;monitoringnew footwearagreement.

MarieD’Avignon

Turkey Apparel/Textile Safeguard

Safeguard investigation by Turkeyin 2011 on Turkish imports of apparel and textiles.

Turkey imposed preliminarysafeguard duties of 17-27% 7/11,much lower than the 60-80%originally proposed.

Opposessafeguardduties.

MarieD’Avignon

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CUSTOMS

Issues Description Status / Next Steps AAFA

Position

Contact

CustomsReauthorization

Eorts by Congress to re-balanceCustoms’ trade facilitation andsecurity roles.

Legislation introduced inSenate in 2010, but no action.Action possible in 2013.

Supports reviewof Customs.

Nate Herman

Footwear Textile

Outsole

New tari classication and tari 

treatment of footwear with textileoutsoles.

New rules implemented 12/11

allow continued use of textileoutsoles to lower duties onmost footwear using textileoutsoles today,with exceptionof rubber rain boots. Disallowstextile outsoles on otherfootwear still produced inUnited States. Key denitionspending.

Supported new

rules to providepredictability.Urges Customsto clarifydenition innew rules ASAPto eliminateuncertainty.

Nate Herman

Lacey Act Revisions to Lacey Act, from 2008Farm Bill, creating a new importdeclaration requirements for “plantsand plant products.”

Interagency working groupaddressing implementationissues related to importdeclaration, includingpublication of denitions.Enforcement of declarationcurrently does not aectclothing, footwear or textiles.Congressional eorts toamend law stalled in 7/12.

Monitoring/Opposesburdensomerequirements.

Steve Lamar

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CUSTOMS

Issues Description Status / Next Steps AAFA

Position

Contact

Proposed First Sale CBP Proposed Elimination of Popular cost-saving import valuationmethod

Due to Congressional pressure,CBP withdrew its proposedelimination on 9/10. CBP/ITCcompleted study on use. InEurope, European Commission(EC) proposed repeal, butEuropean Parliament nowopposing repeal.

Opposed FirstSale repeal;monitoringissue.

Steve Lamar

Textile EnforcementLegislation (S.1683/H.R. 2754)

Legislation that would imposeburdens on U.S. textile and apparelimporters to address concernsraised by domestic textile interestsof enforcement problems.

Bills introduced in bothchambers in 2010.Reintroduced in House andSenate in 2011. Proponentspushing to include in possibleCustoms reauthorization

measure. Discussions withtextile stakeholders todevelop proposal that actuallyaddresses problems.

Opposes bill asintroduced

Steve Lamar

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CUSTOMS

Issues Description Status / Next Steps AAFA

Position

Contact

100% Cargo ScanningRequirement

100% scanning requirement forall cargo entering the U.S., withscanning to take place in foreignports where the loading takes place.Authorized under the SAFE PortsAct of 2006 / 9/11 Commission Actof 2007, and set to go into eect in2014.

Revised legislation introducedin 112th Congress under SAFEPorts Reauthorization Act.Supporting re-introduction of revised legislation

Opposes David Lapidus

Clean Ports Act/Similar Eorts onState Level

Eort to change trucking laws toallow local ports and municipalitiesto regulate interstate trucking forenvironmental reasons. Would forceindependent truckers to work forunion employers

Legislation introduced in 2011.Businesses and some portshave shown that no changeis needed as current cleanenvironmental mitigationeorts across the country

are working. On-goingdebate in Congress and statelegislatures.

Opposes David Lapidus

Domestic FreightRates

Reclassication of footwear andapparel by trucking group NationalMotor Freight Trac Association(NMFTA) raises freight rates by asmuch as 50-400 percent.

New classications for LTLfreight for footwear went intoeect 1/10. New apparel LTLfreight classications went intoeect 12/10.

Opposedreclassications;Urging DOJanti-trustinvestigation.

David Lapidus

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CUSTOMS

Issues Description Status / Next Steps AAFA

Position

Contact

Hours of Service (HOS) Proposals

Proposals to revise rules governingamount of time truckers can drive

Industry concerned that wellmeaning rules may createimpossible to meet burdensand drive up costs withminimal increase to safety.FMCSA released nal rulewhich decreases the drivinghours allowed in a week butnot per day. The rule went intoeect 2/12 and the compliancedate of most provisions is 7/13.

Opposes David Lapidus

MaritimeTransportation

Increased concerns over anti-competitive shipping practices byocean carriers on maritime cargo asa result of anti-trust immunity

Increased interest in issue byFederal Maritime Commissionand Congressional leaders.Legislation introduced in 2010.

Monitoring;Urges removalof Anti-trustprotection

David Lapidus

Port Labor Situation Labor contract negotiations onEast/Gulf and West Coasts creatingpossible disruption.

East and Gulf Coast union/employer associationsexperiencing on-again, o-again negotiations over MasterContract renewal. Key unionon West Coast has operatedwithout a contract since 2010and continues negotiations.

Monitoring/Supportsresolution of union/employercontract conicts

David Lapidus

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PRODUCT SAFETY / ENVIRONMENTAL / SOCIAL RESPONSIBILITY

Issues Description Status / Next Steps AAFA

Position

Contact

Children’s Sleepwear Regulations governing ammabilityof children’s sleepwear.

CPSC reissued loungewearguidance in 12/11 and hasannounced renewed eort toenforce rules.New laboratorytest method for sleepwearpublished. CPSIA 3rd party testand certication requirementsnow in eect

Monitoring MichaelMcDonald

Consumer ProductSafety ImprovementAct (CPSIA)

Federal product safety overhaulenacted in 2008.

Stay of enforcement on leadand phthalate testing andcertication removed on1/12. CPSC now reviewingCongressional mandate (H.R.2715) to ease testing burdens.CPSIA Database, component

parts rules, and tracking labelrules also fully in eect.

Addressingimplementationissues in theregulatoryprocess.

MichaelMcDonald

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PRODUCT SAFETY / ENVIRONMENTAL / SOCIAL RESPONSIBILITY

Issues Description Status / Next Steps AAFA

Position

Contact

Drawstrings National standards governingdrawstrings

Wisconsin/New York enforcetough guidelines. CPSCaggressively enforcingASTM standard, declaringdrawstrings (including ties) a“substantial product hazard”in 2011. Continuing uncertaintyregarding denition of drawstrings and children’sproduct under standard.

Monitoring.Seekingclarication of denitions.

MichaelMcDonald

Flammable FabricsReview

Guidelines for ammability testingand standards for general wearingapparel.

Upholstery rules pending.Stay of testing and generalconformity certication liftedfor all products subject to thestandard. Applications for CPSIA

being addressed

Monitoring MichaelMcDonald

Toxic SubstancesControl Act (TSCA)Reform

Complete overhaul of the originalTSCA legislation which essentiallyregulates the use of chemicals inconsumer products.

Expansive reform languageintroduced in 2010, but stalled.Senate version reintroducedin 2011 and 2012, which alsostalled.

Monitoring/Opposesburdensomerules.

MichaelMcDonald

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PRODUCT SAFETY / ENVIRONMENTAL / SOCIAL RESPONSIBILITY

Issues Description Status / Next Steps AAFA

Position

Contact

CA Prop 65 Decades old California law enablingcitizen lawsuits to force labelingof products containing certainsubstances.

California Prop 65 activitydramatically aecting industryresulting in settlements.

Opposes legalframeworkencouragingexcessivelitigation.Monitoring/advisingmembers oncompliancetools.

MichaelMcDonald

Maine Toxic Chemicalsin Children’s ProductsLaw

Maine requirement formanufacturers of children’sproducts to report any componentswhich contain so-called “PriorityChemicals.”

Reporting requirments onlymandated for Priority Chemicalsbisphenol-A and nonylphenolsbut more chemicals may beadded to the Priority list in the

future

Monitoring/Opposesburdensomerules

MichaelMcDonald

Washington StateChildren’s SafeProduct Act

Washington State law requiringagencies to identify and prioritizechemicals of concern and evaluatesafer alternatives

Regulations promulgated.Possible legislativechanges being considered.Implementation phased-in,starting 8/12, depending on typeof product and company size.

Issued industryguidance oncomplyingwith law.Monitoring/Opposesburdensomerules

MarieD’Avignon

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PRODUCT SAFETY / ENVIRONMENTAL / SOCIAL RESPONSIBILITY

Issues Description Status / Next Steps AAFA

Position

Contact

California GreenChemistry (AB1879/SB 509)

California law to identify andprioritize chemicals of concern andevaluate safer alternatives.

AAFA continues to engage withthe California Department of Toxic Substances Control as itnalizes these regulations.

Monitoring/Opposesburdensomerules

MarieD’Avignon

Climate Change Legislation to create cap and tradesystem to reduce greenhousegas emissions. Key reducegreenhouse gas emissions. ObamaAdministration priority.

Bill to phase-in taxes onimporters approved in Housein 2009, but stalled in Senate.Controversial EPA proposal toregulate Greenhouse Gassesproceeding despite legaland political challenges. SECrecently claried rules to requirereporting of climate changeimpact in quarterly lings.

Monitoring/Opposesburdensomerules

MarieD’Avignon

FTC Revision of “Green Guides”

FTC updated of Guides for the Useof Environmental Marketing Claims,also known as “Green Guides,”which govern environmental or“green” marketing of products.

Revised Guides released 10/12. Monitoring/Opposesburdensomerules

MarieD’Avignon

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PRODUCT SAFETY / ENVIRONMENTAL / SOCIAL RESPONSIBILITY

Issues Description Status / Next Steps AAFA

Position

Contact

Australia WoolMulesing

Eort to end use of mulesing inAustralian wool industry (AWI).Mulesing used to prevent blowystrike, which kills sheep

AWI voided deal with animalrights group PETA to endmulesing by 2010. Undercontinued pressure, AWIcontinuing eorts to ndalternatives to mulesing.

Supports end of mulesing

Nate Herman

Burma Import Ban Import ban to force politicalprogress

Annual renewal signed intolaw 8/12. Ban expires 7/13, butPresident can suspend ban.Reforms and U.S. governmentstatements signal possible endof sanctions

Supportscontinuationof democraticreforms inBurma

Nate Herman

California

Transparency inSupply Chains Act (SB657)

New law requiring companies

selling in California to disclose ontheir website what company isdoing to combat human trackingand slavery in their supply chain.

Law went into eect 1/12.

Unclear yet what kindof punitive action will betaken against companiespunitive action will be takenagainst companies. Possibleenforcement actions to beginin early 2013. Federal approachbeing contemplated.

Monitoring

implementationof the law.Issued guidanceto memberson disclosure.Monitoringeorts toFederalizeCalifornia law.

Nate Herman

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PRODUCT SAFETY / ENVIRONMENTAL / SOCIAL RESPONSIBILITY

Issues Description Status / Next Steps AAFA

Position

Contact

Child/Forced LaborList

Dept. of Labor (DOL) list of products & countries that use childand/or forced labor.

DOL published list in 9/09identifying textile, apparel, andfootwear products suspectedof child / forced labor. DOLupdated lists in 10/11 and 9/12.

Monitoring.Signicantconcerns withprocess used todevelop/updatelist.

Nate Herman

Conict Minerals New SEC reporting and disclosurerequirements on productscontaining so-called “conictminerals”.

Final regulations issued 8/12. Draftingindustryguidelinces forcompliance withlaw

Nate Herman

Uzbekistan Cotton Uzbek government forcing adultsand children to work in cotton elds

during harvest.

Intl Labor Org (ILO) consideringcase on Uzbek cotton. Multi-

stakeholder coalition, includingAAFA, pushing for U.S.government action throughtracking/human rights reports.NGOs/SRIs pushing cottonbrokers/brands/retailers toboycott Uzbek cotton

Opposes useof forced labor

and forcedchild labor.Monitoringtraceabilityissue

Nate Herman

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PRODUCT SAFETY / ENVIRONMENTAL / SOCIAL RESPONSIBILITY

Issues Description Status / Next Steps AAFA

Position

Contact

Berry Amendment(HR 679/S. 2114)

Requirement to source militaryapparel, footwear and other textileitems in the United States.

DHS implemented regulationsto limit TSA clothing, footwearand textile purchases to NAFTAcountries and Chile. Permanenttrade compliance extensionof Berry amendment to DHSintroduced 112th Congress.

Supports Kurt Courtney

Federal PrisonIndustries (FPI) (HR2312 and HR 3634/S.2169)

Mandatory Source requirement forU.S. government purchases of U.S.prison-made goods.

Reform legislation introducedin 112th Congress. Lame Duckaction unlikely. Expectedreintroduction of legislationexpected early 2013.

Supportsreform of Federal PrisonIndustriesprogram.

Kurt Courtney

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GOVERNMENT CONTRACTS / INTELLECTUAL PROPERTY / MISC.

Issues Description Status / Next Steps AAFA

Position

Contact

JWOD Reforms Possible update of 40-year oldJavitz, Wagner, O’Day Act thatoers employment opportunities toblind and disabled Americans

No action in 112th Congress.Possible eorts in 113thCongress.

Monitoring/Toensure it worksas intended

Kurt Courtney

Reverse Auction/Low Price TechnicallyAcceptable

New procurement tools byDOD lowers the price of militaryequipment far below market price.

AAFA is working toeliminate DOD’s use of these procurement tools forClothing & Textiles (includingfootwear) due to unintendedconsequences

Opposesuse of bothprocurementstrategies

Kurt Courtney

Anti-Counterfeiting Broad campaign to crack down onillegal trade of counterfeit products

Anti-Counterfeiting TradeAgreement (ACTA) concludedbetween US, EU and other

developed countries, butfailed to pass in the Europeanparliament. U.S. governmenthas launched separateinitiatives.

Supportseorts to stopcounterfeiting

worldwide.Workingwith U.S.governmenton variousinitiatives/issues.

Kurt Courtney

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GOVERNMENT CONTRACTS / INTELLECTUAL PROPERTY / MISC.

Issues Description Status / Next Steps AAFA

Position

Contact

Design Piracy (HR2511)/S 3523)

Legislation to extend copyrightstyle protection to original fashiondesigns

Bills introduced in Houseand Senate, which includedAAFA-supported narrowlegislation. House held hearingin July 2011. Senate JudiciaryCommittee marked-up thebill September 2012. Actionpossible in Lame Duck.

Supports HR2511 and S 3523

Kurt Courtney

ICANN Eorts by ICANN to expand gTLDsystem continue to draw concernfrom rightsholders.

Group responsible for assigningdomain names pushingthrough unprecedented,confusing expansion of domain names. Applicationperiod conconcluded. Formalobjection period ends in March

2013.

Supports reformof ICANNsystem tobetter protecttrademarks

Kurt Courtney

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GOVERNMENT CONTRACTS / INTELLECTUAL PROPERTY / MISC.

Issues Description Status / Next Steps AAFA

Position

Contact

Rogue Web SitesLegislation

Legislation that seeks to eliminatethe prevalence of websites thattrac in counterfeit goods.

Legislation stalled in 2011.PROTECT IP Act and StopOnline Piracy Act facedextreme opposition fromsearch engines and internetservice providers. Both billsare stalled indenitely. AAFAcontinues to work to stoprogue Web sites from sellingcounterfeit and potentiallyharmful apparel.

Legislationstalled inCongressdue to publicopposition.Workingwith theAdministrationand Congressto develop newtools to protecttrademarks

Kurt Courtney

Business Activity TaxSimplication Act(BATSA) (H.R. 1439)

States levying business activitytaxes based on perceived nexus ina state

BATSA reform legislationintroduced in the House

Monitoring/Supports thephysical nexus

requirement.

David Lapidus

Card Check Proposed elimination of secretballot to determine if a workplacewants to unionize and subjectscontracts to binding arbitration.

Legislation dead. Regulatoryeorts to implement have beenpursued. Possible compromiseplans may also see action.

Opposes David Lapidus

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GOVERNMENT CONTRACTS / INTELLECTUAL PROPERTY / MISC.

Issues Description Status / Next Steps AAFA

Position

Contact

Corporate SpeechLimits

Eorts by Obama Administrationand Congress to restrict the abilityof companies to engage in politicalspeech.

Anti corporate restrictionsto overturn Supreme Courtdecision stalled during 2010.Administration pursuingregulatory options. Registeredlobbyists still not allowed

to serve on trade advisorycommittees.

Opposeseorts to limitcorporatespeech

Steve Lamar

Health Care Reform Comprehensive health care reformlegislation.

Uneven implementationprocess and legal challenges ascompanies evaluate cost andcoverage impacts. Individualprovisions remain. 1099reporting requirement andMedicaid expansion repealed

Monitoringimplementationof the law.OpposesBurdensomerequirements

David Lapidus

Interchange Fees Bank-imposed fees on retailersfor every single credit/debit cardtransaction, amounting to $40billion/year on fees.

Reform provision on debit cardfees signed into law. Senatedelay eort defeated 6/11. FedReserve announced new debitcard fee limits 6/11. New limitswent into eect 10/11.

Supportsprovision andother proposalsto instillcompetition

Nate Herman

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GOVERNMENT CONTRACTS / INTELLECTUAL PROPERTY / MISC.

Issues Description Status / Next Steps AAFA

Position

Contact

Labeling Various eorts to harmonizelabeling at regional and multilaterallevels

Future uncertain forharmonization eorts in WTOtalks. In Fall of 2012 the FTCproposed changes to the Furand Care Labeling Rules

Supportsharmonizationeorts andwelcomesrevisions tosimplify rules.

MarieD’Avignon

Main Street FairnessAct (HR 2701/S. 1452)

Legislation to achieve equality andstreamline state sales tax collectionfor goods sold over internet.

Revised bills introduced in112th Congress.

Supportsenactment

David Lapidus

NTC/[TC]2 Funding to advancecompetitiveness of US industry

No funding secured in recentAppropriations bills. Possiblegrant funding opportunitiesthrough proposed Outdoor or

ATTIRE Acts.

Supports Kurt Courtney

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Issues Description Status / Next Steps AAFA

Position

Contact

Tax Extenders Legislation to extend “Bush” taxcuts from 2001 to 2003 to renewexpired tax provisions, such as theR&D tax credit, which expired atend of 2008.

Many tax cuts extendedtemporarily (many through2012) in omnibus tax measureat end of 111th Congress.Further legislation introducedin 112th Congress to extend

through 2013. On-going debateover broad tax reform in 2012-2013.

Supportsrenewal andextension.

David Lapidus