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The US textile and apparel industry is a complex web of domestic manufacturing, imports, and exports, interwoven with trade agreements and policies that shape its competitive landscape. The US's textile and apparel trade relationship with the CAFTA-DR region has had a significant impact on the industry.
CAFTA-DR: A Cornerstone of US Textile and Apparel Trade
The Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) has significantly influenced US textile and apparel trade. Enacted in 2005, this agreement established a free trade zone encompassing the US, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
CAFTA-DR has fostered a strong trade relationship in textiles and apparel, with a focus on sourcing yarn and fabric from the US, producing garments in the CAFTA-DR region, and exporting them back to the US. This ‘yarn-forward’ rule of origin has been crucial in driving investment and job creation in the region.
Table 1: US imports of textiles and apparel from CAFTA-DR (2020-2022)
|
Year |
Apparel ($bn) |
Textiles ($bn) |
Total ($bn) |
|
2020 |
8.7 |
1.5 |
10.2 |
|
2021 |
10.5 |
1.9 |
12.4 |
|
2022 |
11.8 |
2.1 |
13.9 |
Table 2: US exports of textiles and apparel to CAFTA-DR (2020-22)
|
Year |
Apparel (($bn) |
Textiles (($bn) |
Total (($bn) |
|
2020 |
0.8 |
1.2 |
2 |
|
2021 |
1 |
1.5 |
2.5 |
|
2022 |
1.1 |
1.7 |
2.8 |
(Source: US International Trade Commission data)
US textile and apparel trade with the CAFTA-DR region has shown dynamic trends in recent years as the tables indicate. The data shows consistent growth trend in both imports and exports. However, the US maintains a significant trade deficit with the CAFTA-DR region in this sector, highlighting the region's role as a vital sourcing hub for US apparel brands.
The opportunities are immense, as rising transportation costs and concerns about supply chain resilience are driving a trend towards nearshoring favoring production closer to the US market. And CAFTA-DR countries are well-positioned to benefit from this shift. With growing consumer demand for sustainable and ethically produced clothing presents an opportunity for CAFTA-DR countries to differentiate themselves by implementing eco-friendly practices and ensuring fair labor standards. Meanwhile, investing in technology and skills development can enhance productivity and competitiveness in the CAFTA-DR region, enabling it to move up the value chain and produce higher-value garments.
Despite growth, the trade relationship with CAFTA-DR faces challenges. The CAFTA-DR region faces stiff competition from Asian countries like China, Vietnam, and Bangladesh, which often offer lower production costs. At the same time concerns persist on labor rights and working conditions in some CAFTA-DR countries, potentially impacting brand reputations and consumer perceptions. Political instability and security issues in certain CAFTA-DR nations can disrupt supply chains and create uncertainty for investors.
The future of US textile and apparel trade with CAFTA-DR hinges on several factors, including:
US trade policy: The current administration's trade policy, with its focus on labor rights and environmental protection, could influence sourcing decisions and investment flows.
Regional integration: Deeper integration among CAFTA-DR countries can enhance efficiency and competitiveness, making the region more attractive for investment and trade.
Technological advancements: Automation and digitalization are transforming the global textile and apparel industry. CAFTA-DR countries need to adapt to these changes to remain competitive.
Textile and apparel imports experienced notable growth from August to October, rising 9.8 per cent to 10.7 billion square meter equivalents (SME) in October, according to the Department of Commerce’s Office of Textiles and Apparel (OTEXA). This represents a 33.1 per cent increase compared to the same period last year.
Textile imports totaled 8.22 billion SME in October, up 14 per cent from August and 37.2 per cent year-on-year, while apparel imports stood at 2.51 billion SME, down 2.4 per cent from August but up 21 per cent from last year. Year-to-date imports through October reached 87.5 billion SME, a rise of 11.3 per cent from 2023, with textiles climbing 13.8 per cent to 65.7 billion SME and apparel increasing 4.4 per cent to 21.8 billion SME.
For the year ending October 2024, total imports grew 10.6 per cent to 101.4 billion SME. Textile imports jumped 13.5 per cent to 76.2 billion SME, while apparel imports edged up 2.9 per cent to 25.2 billion SME.
Among top source countries, China remained the largest supplier in October with 3.53 billion SME, up 3.8 per cent monthly and 17.7 per cent annually. India and Egypt showed significant gains, with annual increases of 90.7 per cent and 294.6 per cent, respectively. Vietnam (+30.8 per cent) and Turkey (+6.0 per cent) also contributed to the growth. Conversely, Malaysia and Israel saw declines of 15.8 per cent and 44.3 per cent year-on-year.
OTEXA’s data highlights robust global demand, particularly for textiles, despite variability among sourcing nations.
Myanmar Garment Manufacturers Association (MGMA) along with its member companies and factories plans to participate in India’s largest textile show Bharat Tex 2025, scheduled to be held from February 14-17, 2025 in New Delhi, India.
As per arrangement, MGMA’s members can join a buyer delegation visit. They will be provided with a four-night stay, lunch at the expo, sightseeing agendas and transportation facilities.
A great platform to connect textile buyers with suppliers, Bharat Tex 2025 will showcase India’s complete textile value chain with manufacturing capacities and cutting-edge technologies, its extensive heritage and expertise in the textile industry including handloom fabrics, embroidery and dyeing techniques.
The event will feature comprehensive pavilions exhibiting fibers and yarns, fabrics, apparel and fashion blending traditional and contemporary styles, home textiles, handloom, technical textiles, handicrafts, carpets and intelligent manufacturing.
The textile show will also include CEO roundtables, government-to-government (G2G) meetings, Business-to-Business (B2B) networks and textile tours.
ILO’s RISE for Impact project aims to address the deficits in decent work in India’s cotton supply chain by focusing on the Fundamental Principles and Rights at Work.
Initiated by a premium textile brand, the project highlights suppliers who focus on MNE’s roles in addressing the deficits in decent work. The project also emphasises on brands’ responsibilities in ensuring social compliance across their supply chain, starting at the farmer level.
Through its subsidiary, Cotton Development and Research Association (CDRA), the project partnered with Confederation of Indian Textile Industry (CITI) to host two farmers meets over two months. Between October and November, ILO-trained trainers from CITI-CDRI created awareness on safety and health for cotton farmers organised at Ratlam, Madhya Pradesh.
National and international stakeholders, representing the Indian government, brands and retailers, farm groups, suppliers, industry associations and civil society organisations came together to discuss the importance of decent work and sustainable cotton supply chain during organic cotton accelerator’s sector level event in November 2024.
A producer of textiles using cotton and man-made cellulose fibers like rayon and modal, synthetics, etc, C&T plans to open its third facility in Vietnam this month. This new facility will increase C&T’s total daily dyeing capacity by 150,000 kilograms.
A specialist in knitting as well as dyeing, C&T produces textiles using cotton, man-made cellulosic fibers (MMCF) like rayon and modal, synthetics, etc. The company recorded revenues of approximately $130 million in fiscal year 2024. It serves major retailers such as as Walmart, Target, Gap, Old Navy, Carhartt, Kohl’s, VF Corp. and SPARC Group.
C&T has built its third with cutting-edge solutions for both efficiency and sustainability. Powered entirely on biomass, the facility is also equipped with a rainwater capture and reserve system that improves its water footprint. Additionally, the factory employs eco-friendly dyeing technology. Adding differentiation from the rest of C&T, this plant uses European machinery.
Besides Vietnam, C&T also plans to open a factory in Guatemala in 2026, which will support Hansae’s Western Hemisphere garment production footprint. The company aims to establish establish a sustainable, vertical complex in Michatoya Pacifico Industrial Park to promote its nearshoring operations and enable it to make even quicker turns for its customers.
Exports of special technical textile products from India grew by 6.2 per cent to Rs 2,915 crore from April-November 2024 as against Rs 2,345 crore in the corresponding period last year.
As per Ashok Kumar Malhotra, Mission Director, National Technical Textiles Mission (NTTM), increasing consumption is fuelling the domestic demand for technical textile products in India. Exports of products such as diapers and sanitary napkins are rising, However, to sustain this growth, India needs to promote domestic production and restrict imports, he adds.
The packing technology and geo textiles segments of technical textiles are also growing rapidly. India needs to leverage its strong base of natural raw materials to develop these segments into functional textiles, he adds.
According ot Malhotra, the government has already spent over 50 per cent of the total outlay of Rs 1,480 crore for the Mission. It has earmarked another Rs 500 crore investment for creating the eco system by training the right personnel. These schemes are likely to benefit only those consumers who apply before March 2026, he warns.
Currently, India has 2 centers of excellence for technical textiles. The government plans to release a report in another three months to identify the centers that need to be moved to the next level of activities and construct new ones, he adds.
A lifestyle brand founded by multi-platinum recording artist Future, Evol by Future has teamed up with creative agency Marsuno, led by Mario Tovar, Founder and CEO, to launch a new exclusive apparel collection. Featuring ‘cut and sew’ pieces, this new collection includes denim, t-shirts, hoodies, sweatpants, and accessories, all designed to reflect the brand’s bold and forward-thinking style.
Available exclusively online at shop.evolbyfuture.com, the Evol by Future collection offers fans across the nation an opportunity to incorporate Future’s signature aesthetic into their wardrobes.
The brand plans to expand distribution of this collection to select premier retail outlets. Launched in May 2023, Evol by Future is renowned amongst cannabis enthusiasts and trendsetters. The brand’s new apparel collection helps it make a significant mark in the fashion and streetwear landscape, uniting fans of Future’s music with those who appreciate cutting-edge style.
This collaboration between Evol by Future and Marsuno represents a powerful fusion of creativity, culture, and lifestyle, setting the stage for a bold new chapter in the brand’s journey.
To be held from February 2-3, 2025 at IHG Citystars, Cairo, the debut edition of Denimsandjeans Egypt will help catalyse denim and jeanswear industry growth across the country and build the next productive hub for this segment.
The event will host about 40 top market leaders including AGI Denim, Arvind, Bossa, DNM Denim, Deridesen, Dynamo, Eroglu, Garmon Kemin Group, MIC, Officina 39, Kassim Textiles, Kipas, Lotus Fabrics, Sharabati, Siddiqson, Tonello, Tusa Group and Wiser Globe. It will also feature a series of talks featuring global industry leaders.
Among these, Guess will host Valter Filipponi, Senior Denim & Menswear Designer, Guess Europe, who will hold the talk ‘Denim trends shaping the industry.’
Similarly, Nikita Raman, Senior Denim Designer, and Hugo Boss, will host a talkshow on the topic, ‘Denim Design Evolution.’ The event will also include a session hosting key Turkish players of the denim market, including Colins, Cross, LTB and LCW, etc.
The show will highlight Egypt’s role in the global textile and apparel industry since the early times of the Pharaonic Egypt from about 3000 BC to 30 BC, when textiles were primarily made from linen according to elaborate artistry and craftsmanship, until the present day.
Compared to 2023, Egypt’s textile and apparel (T&A) exports grew by 13 per cent to $2.2 billion in 2024. From January-July 2024, Egypt’s T&A exports grew by 20 per cent as the corresponding period last year. Most of these exports were targeted towards Americas with exports worth $661 million, Europe with exports totaling $363 million, Arabian countries and the rest of the world with exports worth $291 million for each, and Africa with shipments of $4.7 million.
World’s leading producer of dyed fabrics and shirts, Luthai Group is set to revolutionise Egypt’s textile and apparel sector by establishing a fully integrated supply chain. The Chinese textile company plans to construct a state-of-the-art factory on 500,000 sq m in the country in joint venture with the General Authority for Investment and Free Zones (GAFI). The project will be executed with an investment of $385 million.
The facility will cover all stages of production, from yarn manufacturing to finished garments, with a focus on leveraging advanced technology and spinning systems. Liu Deming, Global Marketing Director, Luthai Group, emphasises, Egypt’s economic stability, sustainable growth, and skilled labor force make it an ideal investment destination.
Enhancing the country’s global competitiveness, all products from Luthai’s new factory will be exported. Egypt’s favorable investment climate under its Investment Law provides substantial financial regulatory incentives to projects like Luthai’s, says Hossam Heiba, President, GAFI. The factory qualifies for the Golden License, expediting all necessary approvals for its operations.
The new factory will not only create substantial employment opportunities but also localise technology and support regional development, says Mohamed Kassem, Chairman, Egyptian Exporters Association. Foreign investments, especially from China, are reshaping global supply chains and positioning Egypt as a key player in textiles and apparel, he adds.
Egypt is also strengthening ties with Turkish companies in the textile sector. Earlier this year, Suez Canal Economic Zone (SCZONE) signed agreements with Turkey’s Eroğlu Global Holding AS to establish a jeans factory and a ready-made garments plant in Qantara West Industrial Zone. Together, these facilities will produce millions of garments annually, create thousands of jobs, and allocate significant output for export.
Adding to the momentum, Sharabati Denim is developing a production facility in Sadat City, featuring advanced spinning, weaving, and sizing capabilities. The plant will employ approximately 2,000 workers, further boosting Egypt’s role as a regional textile hub.
Vietnam's textile and garment sector is poised for continued growth in 2025, with exports expected to reach $44 billion, marking a notable 11 per cent increase over the previous year. This positive outlook is further supported by more than 42 per cent of local businesses forecasting improved performance in Q4 2024. The Vietnam International Trade Fair for Apparel, Textiles, and Textile Technologies (VIATT), scheduled for February 26-28, 2025, at the Saigon Exhibition and Convention Center (SECC), will play a pivotal role in fueling this momentum.
VIATT 2025: A premier industry event
Spanning 15,000 sqm of exhibition space, VIATT 2025 will feature a diverse array of products and solutions, showcasing the full spectrum of the textile industry, from apparel fabrics and accessories to technical textiles, nonwovens, and machinery. The event will highlight key trends such as sustainability and technological innovation with the introduction of two new zones: Econogy Hub and the Innovation & Digital Solutions Zone.
The fair will attract significant international participation, with exhibitors from leading textile-producing countries. Notable participants will include exhibitors from India, Japan, Korea, Pakistan, Taiwan, Thailand, and the inaugural European Zone. European exhibitors, such as BossaTicaret (Turkey), Chargeurs PCC Asia (France), Hohmann GmbH & Co KG (Germany), and Technical Absorbents Ltd (UK), will showcase their advanced textile solutions, including high-quality denim, interlinings, home textiles, and superabsorbent materials.
Focus on innovation and sustainability
The focus on innovation will be evident through new offerings like Murata Machinery's Vortex, a unique yarn production technology that enhances sustainability with high productivity and energy efficiency. Tamurakoma & Co (Japan) will also present innovative functional fabrics, while other Japanese firms like Toyoshima & Co and Stylem Takisada-Osaka will display advanced apparel fabrics and high-quality manufacturing solutions.
With the growing demand for sustainable solutions, the Econogy Hub and Innovation & Digital Solutions Zone will play crucial roles in positioning VIATT as a forward-thinking platform. These areas will explore the industry’s transition toward sustainable practices and technological advancements, offering valuable insights for both exhibitors and visitors.
Vietnam's textile sector remains a vital player in the global market, with Japan continuing to be a key destination for its apparel exports. Vietnamese exhibitors, such as IDFL Vietnam and Sigma Vietnam Industrial, will join global counterparts in presenting the latest innovations in apparel fabrics, home textiles, and technical textiles. VIATT 2025 will strengthen Vietnam’s position as a leading textile manufacturing hub and an essential sourcing destination for international buyers.
A strategic platform for global buyers
VIATT 2025 will serve as a crucial platform for buyers from across the ASEAN region and beyond. Delegations from Malaysia, Myanmar, Thailand, and other key markets have already confirmed their participation. The fair will not only provide networking opportunities but also facilitate new business connections and partnerships within the textile and garment industry.
Organized by Messe Frankfurt (HK) Ltd and the Vietnam Trade Promotion Agency (VIETRADE), VIATT 2025 is set to be a major event for the textile and garment sectors. By bringing together exhibitors from Europe, Asia, and beyond, the fair will help accelerate industry growth and solidify Vietnam’s position as a global textile powerhouse.
