The International Trade Commission has released a report examining the export competitiveness of certain apparel suppliers to the U.S., as requested by the Office of the U.S. Trade Representative in December 2023.
According to the ITC, key findings of this report include the following.
- The U.S. the largest single-country apparel importer in the world, bringing in $79.3 billion in 2023, most of which was sourced from Asia.
- Bangladesh, Cambodia, India, Indonesia, and Pakistan are notable suppliers to the U.S. (accounting for a combined 27.0 percent of U.S. apparel imports in 2023) as well as to the global market.
- From 2013 to 2023 the U.S. market share of imports from China fell while the market shares of other top suppliers such as Vietnam, Bangladesh, Cambodia, and Pakistan increased.
- Bangladesh has extensive capabilities in apparel manufacturing and specializes in bulk orders of basic garments. Factors such as low labor costs, relatively low input costs, and duty-free access to large destination markets outside of the U.S. contribute to Bangladesh’s cost competitiveness.
- Foreign direct investment drives Cambodia’s export-oriented apparel industry, which is focused on cut, make, and trim production using imports of upstream materials. Cambodia’s apparel industry is viewed as an attractive alternative to sourcing from China and its reputation for social responsibility contributes to its competitiveness.
- India has a long history in textiles and apparel production and remains a steady source of U.S. imports. Quality and detailed finishing contribute to the competitiveness of India’s apparel production, which is supported by a highly vertically integrated apparel industry.
- A major supplier of a wide variety of clothing, Indonesia exports the majority of its apparel to the U.S. While it is a relatively high-cost source, Indonesia produces high-value, complex garments such as business attire, outdoor apparel, and athletic wear, which contributes to its competitiveness.
- Pakistan’s cotton sector supports the country’s apparel industry, which is noted for production of high-quality denim. Vertical integration and access to domestic cotton are competitive strengths, but buyers cite geopolitical risk as a concern.
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