Friday, November 4, 2005

Hosiery Insider: Due to the Thanksgiving Holidays and Leadership Summit, this will be the last issue of Hosiery Insider for the month of November. It will resume on December 2.

THA Offices will be closed on Thursday, November 24 and Friday, November 25 for the Thanksgiving holiday. THA staff wish everyone a safe and Happy Holiday!

NOTICE: THA’s 101st Annual Convention will NOT be held at the Hilton Savannah DeSoto. A new location will be soon confirmed. The dates will remain the same – April 27-30, 2006 and currently Savannah, GA is the planned destination.

HISTORICAL HOSIERY HAPPENINGS:
November 14, 1928 – New Standard Full-Fashioned Length – A new standard length of 29 ½ inches, with a tolerance of ½ inch in both directions, was adopted for women’s full-fashioned silk hosiery by the National Association of Hosiery & Underwear Manufacturers. Members of the Association overwhelmingly rejected the new standard lengths for this class of merchandise proposed a month or so ago. These proposed standards of 27 and 29 inches, according to size, were believed to be impractical by most manufacturers. It was agreed that one standard length, with the usual manufacturing tolerance, would be more satisfactory, and it was generally believed that the new standard of 29 ½ inches would be most satisfactory to all concerned.

November 8, 1933 – The Managing Director Thinks Aloud – What is a Code? – The answer to the question contained in the heading is that a code is a merchant law, or, if you please, an industry law, self-imposed by an industry with the approval of the Government, and within certain limits defined in the objectives of the National Recovery Act. As the President has repeatedly stated, the present Code Era is a test of the ability of industry to do a sound and smart job of self-regulation. This implies that if industry fails to demonstrate its capacity to govern itself, then society is likely to step in and do it for industry. Because the Code Era came into being by virtue of a prolonged period of depression which had resulted in throwing an unusual number of people into unemployment, the main objectives sought under the codes are: first, to absorb unemployment, and, second, to lift the earnings of workers so that a larger buying power would result, which in turn would keep industry busy. From this fact there naturally follows that the present codes consist in major part of provisions which restrict hours, which increase minimum wages, and which impose other controls on production and on the use of labor.

NEED EMPLOYEE HOLIDAY GIFT IDEAS? Give them a unique piece of hosiery history. Whether it’s for employee gifts or for those who were involved with the hosiery industry, learn more about the exciting events that have transpired in the hosiery industry in the last 100 years. Purchase copies of The Hosiery Association Centennial: In Step With The Industry For 100 Years. This is the only commemorative publication that captures the Association’s 100-year history of leaders, events, programs and services. Information on how to order is available on our web site. There are a limited number of copies available so they will be sold on a first-come, first-served basis. Act promptly as orders are being filled weekly. These make unique gifts and are only available through THA. Requests to have the author, Sally Kay, sign your copy are also being taken via the order form. Visit www.hosieryassociation.com or contact THA staff at 704-365-0913 to obtain your history book order form.

THA Credit Group Meeting: The next meeting of the Credit Group will be held NEXT Thursday, November 17 at the Lyon Credit Services office in Charlotte, NC. For information about this group, contact Jeanna Sheldon, staff liaison, at 704-365-0913 ext 203.

AL Chapter Monthly Luncheon: The next luncheon meeting for the Alabaman Chapter will be NEXT Thursday, November 17 at the Western Sizzlin’ in Fort Payne, AL. FRONTIER SPINNING MILLS will be the sponsor of this meeting, and a special Thank You goes out to them.

THA Industry Executive Summit/Board Meeting will be held NEXT November 17-18 in Charlotte, NC. As THA officially turns 100, Marshal Cohen, chief industry analyst for the NPD Group and one of the leading business strategists will conduct a thought provoking, challenging planning session for hosiery industry executives. This invitation only event will offer its participants an exclusive setting to share industry concerns and network with their peers. The Board of Directors meeting will follow the leadership summit. Seating is limited for this session. Please contact Sally Kay at 704-365-0913, ext. 212 sally.kay@hosieryassociation.com if you are not on the THA Board and would like to attend.

CHA’s 47th Annual Meeting will take place on Thursday, December 1 at The Sawtooth Building in Winston-Salem, NC. The program will feature a panel of hosiery company CEO’s including Bill Nichol of Kentucky Derby Hosiery and Jon Shugart of WY Shugart & Sons that will share their insight as to what is keeping them competitive in today’s business environment. Everyone is invited to attend this great networking opportunity…you don’t have to be a CHA member to participate. Registration information will soon be available on THA’s website. We would like to also thank UNIFI INC for again sponsoring this meeting!

2006 CHA Luncheon Sponsorship opportunities are still available. If your company is interested in sponsoring any of the 2006 CHA luncheons, please contact Mike Austell at 704-365-0913 ext 204. Call early before all dates are taken. All luncheons are held on the 4th Thursday of the month and alternate between Hickory (Feb, Apr, Aug & Oct)* and Greensboro (Jan, Mar, May & Sept)*. *Please note that the months have been switched for the Hickory and Greensboro sites to avoid past conflicts.

AL & TN Chapters Christmas Party will be held at The Chattanoogan in Chattanooga, TN on Friday, December 9.

Hosiery in the News: Check out our website (www.hosieryassociation.com) to view a copy of a story about mismatched socks – click on link entitled “Human Ingenuity vs the Lost Sock.” This story was issued to 40 newspapers with a combined circulation of about 3.5 million. MR magazine interviewed president, Sally Kay, for men’s spring 2006 sock trends story which is slated for its January issue.

National Textile & Apparel Team , Office Of Textiles & Apparel, USDOC
PIEDMONT TRIAD CHAPTER – NCWTA, USDOC EXPORT ASSISTANCE CENTER – GREENSBORO, PRESENT CAFTA-DR & CHINA SAFEGUARDS NEXT TUESDAY, NOVEMBER 15 - GREENSBORO HIGH-POINT MARRIOTT HOTEL: The hotly debated FTA, covering Central America and  Dominican Republic, has been signed into law. Are you fully up to speed and in compliance with CAFTA requirements - avoiding possible penalties and profit threatening duty payments? Or, are you missing out on the opportunity altogether because of the complexities of qualifying your goods? Do you want to be current on the status on on-going consultations with the Chinese relative to a broad agreement with China on textile quota issues?
 
Join us, along with Deputy Assistant Secretary for Textiles and Apparel Jim Leonard, Customs Attorney Jon Fee, Dr. Nancy Cassill, College of Textiles - NC State University, Sally Kay, President, The Hosiery Association and Mike Hubbard, Vice President, National Council of Textile Organizations for a comprehensive conference in order to take full advantage of these issues. US Commercial Industry Specialists from the CAFTA/DR countries will be available during the event. To arrange an appointment with the CAFTA/DR specialists, contact George Thomas @ 704-333-4886, ext. 223 or email: george.thomas@mail.doc.gov. GO TO:     http://www.ncwta-triad.org/cafta-dr.php  for details and registration form.

Forth & Towne: Gap Inc.'s new Forth & Towne store - five opened in August. Four are in the Chicago area and one is in West Nyack, NY. Forth & Towne is Gap's attempt to attract the over-35 crowd and its enormous disposable income. With the market almost saturated with the retail giant's other brands — Gap, Old Navy and Banana Republic — it decided to create a new brand, much as it did with Old Navy in the ‘90s. Forth & Towne was born.

Wal-Mart Starting Holidays Early: Wal-Mart Stores, Inc. moved up the date of its holiday advertising campaign to Nov. 1. The campaign consists of a multi-media barrage integrated across all channels and in-store signage. The blitz features celebrities such as Garth Brooks, Queen Latifah and Destiny's Child. The full holiday campaign will feature six 30-second television spots and one 60-second spot, which will run on network and national cable stations and in national syndication and local markets, as well as a two-minute video for video-on-demand, which will be run by various cable providers. Four print ads are set to run in November and December magazines including InStyle, O, Entertainment Weekly, Redbook, People and Us Weekly.

Wal-Mart Pays Tribute to America's Servicemen and Servicewomen; 'Wall of Honor' Provides Community-Wide Symbol of Support and Honor: As our country honors the men and women who serve and defend our freedom this week on Veterans' Day, Wal-Mart Stores, Inc. is extending its support deep into communities across the U.S. With a long history of honoring veterans and assisting servicemen and servicewomen, the company will show its support, with a chance for the country to participate.

Members of the community who want to honor a loved one who is serving or has served can go to any Wal-Mart or SAM'S CLUB to inquire about and see the "Wall of Honor," recognizable by the store wall of military men and women's photos. This fast-growing program, now in its eighth year, is becoming an annual tradition and symbol for thousands, who bring to the store the photos of those who protect our freedom.

The Wall of Honor is "built" by each community from October through November 11, which is the final day for customers to place a photo of their hero on the wall and receive a free print of their loved one, courtesy of Wal-Mart and Kodak. Both Wal-Mart and Kodak have announced their partnership this year with America Supports You, a nationwide Department of Defense campaign that highlights military support and encourages others to share their gratitude for the troops.

Zacks.com Announces That the Following Companies Will Release Earnings This Week: Cisco, Dell, Kohl's, Target and Urban Outfitters: Zacks.com releases its exclusive Weekly Earnings and Sector Update written by Dirk Van Dijk, Director of Research for Zacks Equity Research. In addition, the following companies will report earnings this week: Cisco Systems, Dell Inc., Kohl's Corp., Target Corp. and Urban Outfitters. To see this week's full report then visit: http://at.zacks.com/?id=105 .

US and China Reach Bilateral Textile and Apparel Trade Agreement: Officials from China and the US were able to reconcile their differences after several rounds of negotiations and formally signed a comprehensive bilateral agreement on textile and apparel trade. The agreement establishes quotas from January 1, 2006, through December 31, 2008, but also allows the US to impose additional safeguards under certain conditions. The agreement includes a clause similar to one included in the EU-China Memorandum of Understanding on Textile Trade (EU-China MOU) that requires the US to “exercise restraint” in the application of any safeguard quotas on products outside the scope of the agreement for the duration of the deal. Additionally, the US committed not to pursue any safeguard actions with respect to products that were integrated (i.e., removed from quota) pursuant to the Agreement on Textiles and Clothing before January 1, 2002. The scope of the agreement is significantly broader than that of the EU-China MOU, covering a total of 34 product categories. The arrangement does not establish limits for five categories that had been under consideration for safeguard action: cheesecloth, batistes, lawns, and voiles (category 226); women’s and girls’ cotton and manmade fiber woven blouses (category 341/641); cotton and manmade fiber skirts (category 342/642); cotton and manmade fiber robes and dressing gowns (category 350/650); cotton and manmade fiber nightwear (category 351/651); and manmade fiber coats and jackets (category 634/635). According to a fact sheet issued by the Office of the US Trade Representative (USTR), “quotas established by the Agreement for 2006 on ‘core’ products are lower than the safeguard threshold, about the same as the safeguard threshold for 2007, and higher than the safeguard threshold for 2008.” Core products include cotton knitted shirts and blouses, manmade fiber knitted shirts and blouses, men’s and boys’ cotton and manmade fiber woven shirts, cotton trousers, manmade fiber trousers, cotton and manmade fiber brassieres, and cotton and manmade fiber underwear. The USTR claims that, over the life of the agreement “China can export 3.2% more of the covered products to the United States than if the safeguards were invoked on all of the covered products for all three years.” The deal includes a flexibility mechanism that will enable the Chinese government to increase a quota limit during a particular quota year by borrowing from the previous year’s quota (carryover) and/or the following year’s quota (carryforward). Carryover will only be available in 2007 and 2008, amounting to 2% of the base level in each of those two years. Carryforward will total 3% of the base level and will be available in 2006 and 2007. Combined use of carryover and carryforward in any given year may not increase an agreed quota for a category by more than 3%. Unlike the EU-China MOU, the agreement between China and the US does not include a mechanism to allow China to transfer small quantities of quota between highly-utilized limits and limits with low activity.

The agreement also provides for the re-establishment of the Electronic Visa Information System (ELVIS). An ELVIS transmission is defined as an electronic message describing a quota shipment that is sent by China’s Ministry of Commerce (MOFCOM) to US Customs and Border Protection (CBP). Entry of products subject to this agreement will not be permitted if the ELVIS transmission is missing any of the following information: visa number; date of issuance; correct category(ies), part-category(ies), merged category(ies), quantity, and unit of quantity; and Manufacturer Identification Code (MID). Merchandise imported for the personal use of the importer and not for resale, regardless of value, and properly marked commercial sample shipments valued at $800 or less may be entered without an ELVIS transmission, or any other required documentation, and will not be charged against the agreed levels.
The agreement includes an illegal transshipment provision whereby China and the US commit to “cooperate in enforcing the agreed levels and in preventing circumvention of the agreed levels by transshipment, rerouting, false declaration concerning country or place of origin, falsification of official documents, or any other means.” If the US obtains evidence that circumvention has occurred, it may charge the actual quantities of goods that entered the US in circumvention against the agreed levels for those goods.
View Commerce Department press release
View USTR fact sheet on agreement
According to an article in the Times-Journal, infants socks have been added to the socks category that will be receive safeguard measures included in this agreement.

WTO May Hold Second Ministerial in Early 2006: This week top trade ministers in Geneva admitted that in order to avoid another failure like the 2003 WTO ministerial in Cancun, it may be necessary to minimize goals for the Hong Kong ministerial in mid-December, though the target date for the final deal remains the end of 2006. Ministers now say there is talk of a second ministerial to be held in early 2006 that would aim to address issues, such as agricultural reforms, that are likely too divisive to reconcile in the coming weeks.

President Bush Says US, Panama Close to Reaching Agreement on FTA: During a recent press conference in Panama City, President Bush said that the United States and Panama are close to concluding a free trade agreement (FTA). The US had hoped to reach a deal in early 2005, but negotiations stalled over agricultural issues. When asked what the real probabilities are of getting support in Congress for the ratification of a US-Panama FTA, the President mentioned recent opposition to trade agreements from Democratic lawmakers. Congressman Charles Rangel (D-NY), Ranking Member on the House Ways and Means Committee, issued a press release shortly after the President’s statement criticizing him for blaming Democrats, saying that negotiations between the US and Panama are still ongoing in a “wide range of issues, including poultry, rice, pork, sugar, and government procurement, among others.” Rangel also condemned the agreement for weakening existing labor rights in Panama.

EU Considers Labeling Requirements for Some Consumer Goods: The European Union (EU) is considering a proposal to require certain goods made outside EU borders to be labeled with their country of origin, The Wall Street Journal reports. The requirement would affect apparel, footwear, and other products, and supporters hope it will be adopted by the end of the year. Brussels previously rejected a proposal to require origin labels for goods made in any country (including EU members), the article said, due to concerns about costs to businesses and enforceability.

CITA Adjusts Import Limits for Vietnam: The Committee for the Implementation of Textile Agreements (CITA) has issued a directive, effective November 10, adjusting the import limits for certain cotton and man-made fiber textiles and textile products, produced or manufactured in Vietnam and exported during the period January 1 through December 31, 2005. The current limits for certain categories are being adjusted for swing.

Concerns Increase for Hong Kong Ministerial: There is growing concern that expectations for the WTO’s Hong Kong ministerial meeting in December, which has been intended to yield an agreement that will serve as a road map for further negotiations, may have to be lowered. Wide differences remain on the crucial issue of agriculture and work on other topics has virtually halted as a result. The European Union (EU) remains under pressure to offer bigger tariff reduction commitments for farm goods, but officials repeated over the weekend that Brussels’ most recent proposal is its “bottom line.” As a result, high-level talks in Geneva this week may begin to focus on what the realistic goals are for Hong Kong. Some observers say that a decision to push back the deadline for a deal on modalities until next spring, but retain the end of 2006 goal for finalizing an overall agreement, could ultimately be the most attractive option.

Nations Split on Continuing FTAA Talks: The 34 nations attending the fourth Summit of the Americas in Argentina last weekend were unable to reach consensus on resuming negotiations toward the Free Trade Area of the Americas (FTAA). US officials said 29 countries supported the idea of getting the talks back underway by next April, while Venezuela joined the four full members of the Mercosur trade bloc (Argentina, Brazil, Paraguay, and Uruguay) in asserting that the FTAA should remain on hold until it is clear what trade liberalization measures will result from the Doha Round. President Bush has acknowledged recently that the FTAA talks have “stalled” and that additional work will be needed to convince the public in the US, Brazil, and other countries “that a trade arrangement in our hemisphere is good for jobs, is good for the quality of life.”

US Official Skeptical of Finishing Andean FTA Talks This Year: Assistant US Trade Representative (USTR) for the Americas Regina Vargo recently said that concluding negotiations on a free trade agreement (FTA) between the US and the three Andean countries of Colombia, Ecuador, and Peru by the end of this year will be “incredibly challenging.” US officials have previously said they hoped to wrap up a deal by the end of November, before the two sides turned their attention to the WTO ministerial meeting and elections next spring in Colombia and Peru. However, Vargo indicated that substantial differences still need to be resolved on issues like textiles and apparel, investment, agriculture, sanitary and phytosanitary measures, and intellectual property rights (IPR) protection. The next formal round of negotiations will be held during the week of November 14.

Canada, DR to Begin FTA Talks: The Associated Press reports that Canada and the Dominican Republic (DR) have agreed to begin negotiations on a bilateral FTA. The two sides will first appoint technical commissions to consider the idea, but no timeframe for this work was announced.

Trade, Security Top President's Agenda for Talks with Asian Leaders:
Improving trade relations and enhancing security are the main issues President Bush will discuss when he travels to China, Japan and South Korea November 15-21. The President will attend the 13th Asia Pacific Economic Cooperation (APEC) Leaders' meeting in Busan, South Korea during his visit to the region. Mr. Bush gave television interviews November 8 to broadcasters from those nations in preparation for his upcoming trip to Asia. During his meeting with Chinese President Hu Jintao, President Bush will discuss free trade, intellectual property rights enforcement, and U.S. concerns with China's currency. When he meets with Japanese Prime Minister Koizumi, among the agenda items is Japan's two-year ban on U.S. beef, which he urged Japan to lift. Regarding his meeting with South Korea President Roh-Moon Hyun, the President noted the possibility of a U.S.- South Korean Free Trade Agreement, commenting that both countries are going to have to work hard to make that happen.

Mica and Manzullo Introduce Bill to Expand Export Promotion Efforts: Representatives John Mica and Don Manzullo introduced legislation this week that would reform US trade assistance and promotion programs in an effort to help US companies sell more of their products overseas. The US Export Promotion Act (HR 4250) aims to expand US and Foreign Commercial Service (US&FCS) operations, eliminate government fees for businesses seeking assistance, and require 100 US-sponsored trade missions over the next two years. Specifically, this bill would: expand the US&FCS presence to every country with whom the US maintains diplomatic relations; eliminate government fees charged to US exporters for trade promotion assistance; increase US export promotion activities in developing economies; require 100 US-sponsored trade missions to be conducted over the years 2006 and 2007; direct the Department of Commerce (DOC) to develop a plan to relocate US&FCS offices outside of US embassy compounds to facilitate export promotion activities; establish a comprehensive database of exporters to increase the dissemination of overseas business opportunities; remove overseas trade promotion positions from the Capital Security Cost-Sharing Program requirements that cut into the US export promotion budget; and direct the DOC to improve its export promotion website in an effort to make it more user-friendly and expand its scope. The bill was referred to the House Committee on International Relations. Efforts are underway to introduce a companion bill in the Senate.

Ex-Im Bank Adds New Members to Sub-Saharan Africa Advisory Committee: The Export-Import (Ex-Im) Bank has named three new members to its Sub-Saharan Africa Advisory Committee. The committee provides expert guidance to the Ex-Im Bank in developing policies to strengthen its support of US exports to Africa. The newly appointed members are Dennis Dubois, senior vice president and director of international trade banking, Global Solutions Group, Sovereign Bank in Boston, MA; Kanu C. Obioha, vice president of policy and planning, Bluefield Associates, Inc., in Ontario, CA; and Michael R. Turley, director of accounting, The Connell Company, Berkley Heights, NJ.

The contents printed in this document are informational in nature. They are gathered from various industry sources and do not necessarily reflect the views and/or actions of THA.

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