Report On The Textile Industry Labor Income Subsidy Scheme In The United States And Dominica

According to the report on the income subsidy scheme made by the USITC, the assessment of the effectiveness of some clothing schemes from the Republic of Dominica, the EIAP has had a preliminary impact on the textile and garment industries of the United States and Dominica.

　　 EIAP scheme The Republic of Dominica allowing the use of American fabrics to produce some garments. Garment manufacturer To win a credit, that is, they can exempt customs from exporting to us non US made fabrics. The United States International Trade Commission is an independent, non party, fact finding federal agency. It must assess the effectiveness of the EIAP programme and make recommendations every year based on the implementation law of the Republic of Central America free trade agreement of the Dominica.

The first annual report of the US International Trade Commission has been submitted to the Committee on methods and means of the house of Representatives and the US Senate Finance Committee.

The EIAP plan helps Dominica to reduce the loss of job opportunities in woven cotton trousers and other trousers industry and slow down the rate of production decline. Dominica trousers manufacturers and American clothing companies importing trousers from the Republic of Dominica say EIAP helps them increase their cost competitiveness.

Most of the benefits that EIAP companies have received so far seems to have occurred in companies that dyed and processed unprocessed fabrics from third countries. By the end of May 2010, according to the US company's report, the sales and exports of woven fabrics in China increased as a result of the role played by EIAP.

The report's mixed assessment of the planned use of the scheme is partly mixed. Dominican Trousers manufacturers and American companies importing Dominica woven cotton pants indicate that the cost efficiency of the plan may decline in the future. A small number of companies say that if the scheme no longer produces economic benefits, they may move their production out of the Republic of Dominica.

The United States International Trade Commission has received suggestions from the industry and other channels about possible improvements to the plan. These proposals focus on legislation for this program (for example, changing the ratio of American fabrics to foreign fabrics required by the plan), and how to implement the plan (for example, changing the interpretation of the Ministry of Commerce on how to determine "fully formed" fabrics). These channels also recommend extending the plan to other Central American Free Trade Agreement countries and allowing the use of other types of fabrics.