U.S. yarn textiles will be tax-free into the Philippines market

Philipy L. Domingo, the head of the Philippine Trade Bureau, recently shared that the Philippines is actively reaching out to the U.S. Congress, urging them to pass the "Saving Our Industry Law" before the end of the year. This initiative is expected to be a key topic during President Aquino’s upcoming visit to the United States.

Domingo emphasized the urgency of passing the bill before the end of the year, as a potential shift in the U.S. Congress following the mid-term elections could delay or even stall the legislation. If the bill is not passed soon, it may have to be reintroduced later, which could lead to further delays and uncertainty for the industry.

So far, neither the U.S. House of Representatives nor the Senate has approved the clothing bill. As a result, more lobbying and diplomatic efforts are needed to ensure its passage. The bill aims to support the Philippine garment industry by allowing textiles and garments made entirely in the Philippines to enter the U.S. without tariffs. However, there's a crucial condition: these products must use American-made yarns, fabrics, textiles, and cotton.

In return, American textile and fabric producers will also benefit from tariff-free access to the Philippine market. This mutual agreement is expected to boost trade between the two countries and create new job opportunities on both sides. By strengthening economic ties, the bill could serve as a win-win for the U.S. and the Philippines, fostering long-term collaboration and growth in the textile sector.