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

Philipy L. Domingo, the head of the Philippine Trade Bureau, recently stated that the Philippines is actively reaching out to the U.S. Congress in an effort to push forward 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 the upcoming U.S. midterm elections could lead to a shift in congressional control. If that happens, the bill may face delays or even be stalled, requiring it to be reintroduced at a later date. With the mid-term elections scheduled for November, time is running short.

So far, neither the House of Representatives nor the Senate has passed the clothing bill. Domingo stressed that more advocacy and coordination are needed to ensure its approval. He also highlighted the importance of securing support from key lawmakers who can influence the outcome of the legislation.

The primary goal of the bill is to boost the Philippine garment industry by allowing products made entirely in the Philippines to enter the U.S. market without tariffs. However, there's a crucial condition: these garments must be made using American textiles, fabrics, yarns, and cotton. In return, U.S.-made yarns, textiles, and fabrics will also gain tariff-free access to the Philippines.

This mutual agreement is expected to create new job opportunities in both countries. For the Philippines, it represents a significant opportunity to grow its textile and apparel sector, while for the U.S., it opens up new markets for its textile exports. The bill, if passed, could strengthen economic ties between the two nations and provide long-term benefits for their respective industries.