The US wants to renegotiate the North American Free Trade Agreement (NAFTA) with Canada. When NAFTA came into effect in 1994, the Canadian apparel industry took a hit as the terms of the agreement specified only garments made in Canada were considered eligible for free trade across the border. But there is no Canadian manufacturer of denim, so Canadian companies manufacturing denim products have to go abroad to source it.
Thanks to the agreement’s tariff preference levels (TPL), wool, cotton and other manmade apparel made from imported textiles can be exported duty-free to the US. That means Canadian apparel manufacturers can source materials from places like Bangladesh or Sri Lanka, make the products in Canada, and still reap NAFTA's benefits when exporting duty-free to the US.
If NAFTA is fully reorganized or revoked, Canadian apparel companies could lose their competitive edge. Canadians making goods in Canada would then either make goods in the United States or make goods off-shore and further perpetuate the decline of manufacturing in Canada.
Removing the TPL would prevent US companies from enjoying the duty-free shipment of products made with internationally-sourced materials. The only ones who would benefit would be companies that both source and manufacture domestically.
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
The €11 bn deadlock, can Europe’s textile recycling catch up?
Europe is at a tipping point. Fast fashion consumption, led by rising incomes and a growing global middle class, has... Read more
From field to fiber, Bharat CottonNet is closing India’s cotton value gap
India’s cotton economy is entering a decisive phase of reform with the rollout of Bharat CottonNet 2026 along with the... Read more
US apparel imports drop 13.5% as Vietnam gains and China’s grip breaks
The US apparel sourcing market has entered 2026 with a sharp demand decline but an equally important shift in supplier... Read more
H&M finds growth below revenue line as margin discipline pays off
H&M Group’s latest quarter signals a decisive shift in global fast fashion: scale is no longer the primary reason for... Read more
As Europe cuts orders, India sees a rare export window post-FTA
The sharp dip in EU apparel imports is not, at first glance, the kind of headline exporters celebrate. January’s 15.48... Read more
The Death of the "Stockpile" Model: Inside the Digital Textile disrupt…
For decades, the global textile industry has been a game of high-stakes gambling: manufacture thousands of identical garments, ship them... Read more
Fuel crisis, rising costs the geopolitical shockwave hitting Indian textiles
The hum of textile machinery in Panipat has gone dead. Over 400 dyeing units have put their shutters, not because... Read more
Price wars, fast fashion, diamond money leads to Surat’s industrial shake-up
The sound of Surat’s diamond polishing wheels, once the city’s heartbeat, is fading. In its place, the relentless pulse of... Read more
India’s textile market nears Rs 15 lakh cr as domestic demand rewrites growth
India’s textile and apparel economy is no longer being driven merely by population growth or festive consumption cycles. It is... Read more
China Discounts, Bangladesh Bleeds: Inside Europe’s new apparel sourcing crisis
Europe’s fashion imports opened 2026 with a hard jolt. Fresh Eurostat-linked trade data for January shows the European Union’s apparel... Read more












