Latest news with #InternationalApparelFederation
Fibre2Fashion
06-08-2025
- Business
- Fibre2Fashion
President International Apparel Federation
Collaboration, not tariffs key to equitable trade: IAF President US President Donald Trump has consistently championed the use of import tariffs as a key instrument of economic policy, aiming to rewrite the global trade narrative in favour of the United States. His approach presents a compelling argument: that tariffs can be effectively used to negotiate more favourable trade terms, secure concessions from trading partners, increase government revenues, reduce trade deficits, and ultimately bring manufacturing jobs back to American soil. This message has resonated with certain section of the domestic audiences in US, particularly among those working in industries that have been significantly affected by globalization. These groups often feel the economic and social pressures of outsourcing, foreign competition, and shifting trade dynamics more acutely. As a result, the messaging has found strong support among those who perceive globalization as having contributed to job losses, wage stagnation, or reduced economic security. However, reports suggest that this wave of US protectionism is beginning to yield unintended consequences. Far from simply rebalancing trade relationships, the imposition of tariffs appears to be slowing down investment flows and disrupting established global supply chains. One of the most visibly affected sectors is apparel manufacturing and fashion sourcing, where global interdependence and complex logistics play a critical role. In light of these developments, Fibre2Fashion had the opportunity to speak with Cem Altan, President of the International Apparel Federation (IAF) recently. Despite a packed schedule as the IAF prepares to co-host the 40th IAF World Fashion Convention in Yogyakarta (October 24–25), held alongside the ITMF Annual Conference—Cem Altan shared his perspective on how US tariff policies may reshape the future of global apparel manufacturing and sourcing. Following are the excerpts from the interaction with the IAF President: How do you see Trump's tariffs and broader protectionist trade policies impacting the global apparel trade ecosystem—particularly in terms of sourcing strategies and export dynamics? The return or intensification of protectionist trade policies—such as the tariffs introduced under the Trump administration—continues to disrupt the global apparel trade ecosystem. These measures have accelerated a structural shift in sourcing strategies, pushing brands to diversify away from China and seek alternative suppliers in Southeast Asia, South Asia, and Central America. While some countries benefit from this redistribution, it creates significant volatility for apparel-producing nations that depend heavily on exports to the US. What, in your view would be the most immediate disruptions that apparel manufacturers and exporters across various regions might face due to tariffs? The apparel industry operates on thin margins and long, interconnected supply chains. Abrupt tariff changes increase costs, distort market signals, and weaken the trust that global trade is built on. For manufacturers, particularly the SMEs, this unpredictability makes it difficult to invest in sustainability, innovation, and compliance. We believe that the long-term health of the apparel industry depends on stable, rules-based international trade. Rather than resorting to unilateral tariffs, global stakeholders must work together to create fair, open, and future-proof trade environments that reward competitiveness, not geopolitics. How would the unpredictability surrounding tariff affect long-term planning, capital investment and production strategies within the apparel industry? The unpredictability in trade policy—particularly around tariffs—acts as a major deterrent to long-term planning and capital investment in the apparel industry. Manufacturers, especially in emerging economies, are already operating on thin margins and complex logistics. When tariffs can shift dramatically based on election cycles or geopolitical tensions, it undermines confidence and discourages strategic investment in automation, sustainability, and workforce development. Given the likely implications of the US tariffs, to what extent do you expect brands and retailers to diversify their sourcing bases, and what challenges might they encounter in doing so? Faced with persistent tariff threats, global apparel brands are accelerating diversification efforts. While 'China+1' and regional nearshoring are becoming the new norm, the transition is neither quick nor smooth. Brands must navigate infrastructure gaps, compliance inconsistencies, limited capacity, and rising labour costs in alternative markets. The challenge is not only moving production but doing so without compromising on speed, quality, or ethical standards. We at the IAF urge policymakers to recognize that apparel supply chains rely on predictability, openness, and collaboration. A stable trade environment fosters innovation, while uncertainty hampers progress across the entire value chain—from farm to fashion. Which apparel-manufacturing nations do you think have edge in view of the US tariff regime and why? In light of the US tariff regime—particularly under the protectionist policies implemented during the Trump administration—several apparel-producing nations have appeared to gain a relative advantage. This advantage stems from a combination of factors, including preferential trade agreements that reduce or eliminate tariffs, geographic proximity to the United States which lowers transportation costs and shortens lead times, competitive production costs that enhance affordability, and political alignment with US interests which fosters more favourable trade relations. These elements collectively position such countries more favourably in the eyes of US importers, especially when compared to others facing higher tariffs or less advantageous trade terms. As a result, these nations might witness increased demand for their apparel exports, as US companies seek to mitigate the impact of tariffs while maintaining supply chain efficiency and cost control. This shift highlights how geopolitical and economic strategies can influence global sourcing decisions in the apparel industry. In the current scenario, how crucial have regional and bilateral trade agreements become in enabling apparel-exporting countries to navigate tariff-related volatility? Regional and bilateral trade agreements have become absolutely vital for apparel-exporting countries. In today's fragmented and politically charged trade landscape, these agreements are more than just duty-free mechanisms—they are tools for resilience. Agreements like the United States-Mexico-Canada Agreement (USMCA), the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), and Association of Southeast Asian Nations (ASEAN). FTAs allow manufacturers to remain competitive and maintain market access under shifting tariff regimes. Brands are increasingly prioritising sourcing from countries within such frameworks because they offer predictability, speed-to-market, and regulatory clarity. These agreements essentially serve as buffers against the volatility of unilateral trade actions. Do you believe the geographic rebalancing of apparel production that began during the Trump tariff era will become a lasting trend? The geographic rebalancing that began during the Trump tariff era is not a passing phase—it is a fundamental restructuring of global sourcing. Even if tariffs are eased in the future, the combination of geopolitical risk, ESG demands, and rising labour costs in traditional hubs like China will continue to push brands toward diversified sourcing. The global sourcing landscape is undergoing a significant transformation, evolving into a more multi-polar model. This new structure emphasises the development of regional hubs designed to provide quicker response times, the adoption of nearshoring strategies aimed at enhancing supply chain resilience, and the exploration of niche markets that offer increased flexibility. While China is expected to continue playing a major role in global sourcing, the overall approach has fundamentally changed. Companies are no longer solely focused on cost-efficiency; instead, there is a growing emphasis on agility, ensuring regulatory and ethical compliance, and proactively mitigating various forms of risk. These shifts reflect a broader strategic reassessment, as businesses adapt to a more complex and unpredictable global environment. The focus is now on building more diversified, responsive, and resilient supply chains that can better withstand disruptions while still meeting the demands of speed, quality, and sustainability in an increasingly competitive marketplace. DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of
Yahoo
30-06-2025
- Business
- Yahoo
Long Excluded in Climate Conversations, Fashion's Suppliers Create Own Seat at Table
'Aren't there enough initiatives out there working on the same issues?' Matthijs Crietee, secretary general of the International Apparel Federation, asked an audience at the Conduit Club in London on Thursday. He immediately answered his own question: 'There are.' But the Apparel and Textile Transformation Initiative, which the IAF launched with its fellow trade group, the International Textile Manufacturers Federation, as part of London Climate Action Week, is different, Crietee insisted. Although the bulk of greenhouse gas emissions is generated during the resource-intensive garment production phase, manufacturers typically find themselves at the receiving end of brand commandments. More from Sourcing Journal India Eyes Top Spot in Global Apparel Race. Can It Topple Bangladesh and Vietnam? Can Fashion's Beleaguered Sustainability Sector Still 'Double Down' to Create Change? European Commission Yanks Proposed Anti-Greenwashing Rules on Eve of Final Negotiations Despite their vast experience and local expertise, suppliers are usually left to juggle two things, Crietee said: disparate slates of priorities from an assortment of buyers and the expense of delivering sometimes costly energy, water, chemical and waste improvements. Coupled with the fragmentation of a vast, globalized industry, the overall lack of national ownership and roadblocks to funding, the pace of change has been much slower than it needs to be, especially with 2030—a key climate action deadline by many measures—fewer than five years away, he added. The problem, said Miran Ali, managing director of Bitopi Group and a former vice president of the Bangladesh Garment Manufacturers and Exporters Association, is that many brands make sweeping pronouncements at their shareholders' meetings and then pass the bill to their manufacturers—or worse, their workers. 'You cannot turn up in a country which is the second-largest exporter of apparel in the world, and then demand radical changes without ever expecting to spend even one penny on it; it's not possible,' he said with obvious exasperation in his voice. 'Yes, we need to make this industry more sustainable. It has to be more transformative. But you can't destroy my country to make your clothes.' As a manufacturer-led program, ATTI seeks to move suppliers from the sidelines of the conversation to its center. It will comprise multiple country chapters led by their national industry associations and overseen by a global council that will provide strategic guidance, facilitate peer-to-peer learning and create alignment across geographies. Bangladesh and Turkey have already signed on to pilot a three-phase concept that begins with an activities, needs and challenges assessment, moves into a 'solutions design' period involving the input of stakeholders like brands, governments and financial institutions, and ending in an implementation stage that rolls out targeted investments. More countries are expected to come on board in the coming months. It's the absence of a clear plan at the national level that companies can follow and support that's been a missing piece for Felicity Tapsell, head of responsible sourcing at Danish retailer Bestseller. She said that the idea for ATTI was introduced to her in early 2024 at a time of 'peak frustration' when it seemed like everyone in the sustainability community was 'running around a bit like headless chickens' despite buy-ins from senior management on ambitious targets, progress made by other industry initiatives and legislative tailwinds 'greatly moving things forward.' 'We acknowledge we were missing the manufacturers,' she said. 'We cannot fit in Copenhagen, London, San Francisco, wherever, making transition plans for manufacturing countries and then think that this will be an efficient, effective implementation. It's not that feasible. Manufacturers should not just be in an advisory role. It's their business. It's their decision-making. They really need to be in a leadership position here. Environmental transformation will only happen in collaboration with our suppliers and manufacturing partners.' But despite the frequently bandied-about talk of 'collaboration' and 'collective action,' brand requirements are still being pushed down the supply chain. (Variations of the first were uttered 23 times during the hour-long kick-off; the second, nine times.) Changing this tack would require a meaningful redistribution of long-entrenched power dynamics at a time of unprecedented geopolitical turmoil and economic uncertainty. 'It is very important to stress that ATTI, which has grown from the strengthened ties between IAF and ITMF, is not a competing initiative to combat climate change,' said Christian Schindler, the latter organization's director general. 'It is much more of an initiative to organize a group through legitimate channels that have been insufficiently represented and organized on these matters in the past. Manufacturers alone cannot and should not be solely responsible for industry transformation.' Olivia Windham Stewart, a sustainability and human rights consultant who is advising ATTI, described the initiative in a pre-event conversation as akin to a 'little hospital' for the industry, where 'you bring each country and you give the country a full health check, and you're like, 'OK, this is what's happening. We need to focus on these key areas.' But of course, we keep running a health check because we want to keep the industry healthy and productive and buoyant.' The response, so far, has been welcoming, 'even in an era of initiative fatigue,' because 'we're not duplicating anything,' she said. 'Most brands and manufacturers would like a mechanism for manufacturers to participate and lead, and they would like a mechanism through which to understand better country context and strategies and priorities.' For Andrew Martin, executive vice president of Cascale, the multi-stakeholder organization formerly known as the Sustainable Apparel Coalition, ATTI is a 'dream come true' for someone who has realized that a business case for manufacturers needs to be at the heart of the industry's sustainability efforts. 'It's not us going, 'Can you do it?'' he said. 'It's you going, 'We're taking leadership. We're taking ownership of this. We want this to be manufactured. We want this to be country-focused. We're avoiding duplication of work.' And we can carry on doing what we're doing. We can bring data, we can bring some of our brand members to start to look at aligning our programs, but you can lead the country-based initiatives. You can lead that focus.' Martin was in Vietnam last month for Cascale's largest forum to date. There, in the middle of Ho Chi Minh City, 600 attendees, most of them manufacturers, participated in a poll about the biggest barriers to driving decarbonization at their factories. The responses, he said, were surprising. 'The No. 1 wasn't finance, neither was it technical solutions; in reality, a lot of the manufacturers were saying, 'We know what's needed,'' Martin said. 'The No. 1 that came out significantly, at 42 percent, was brand alignment. Stop duplicating work. Give us something that's aligned, consistent. And work with us because we can deliver those solutions. So I think collectively, this is a great opportunity to drive that.' Windham Stewart took a quick stock of her surroundings. 'There's a lot of heavy nodding from the manufacturers in the room,' she observed with a laugh. 'So I think we've got a bit of an agreement on that front.'
Business of Fashion
26-06-2025
- Business
- Business of Fashion
Fashion's Suppliers Want More Say on Climate Action
Fashion's manufacturing base wants a bigger say in the industry's sustainability efforts. Much of the sector's environmental footprint takes place deep in supply chains, where textiles are washed and dyed in energy-, water- and chemically intensive processes. But the industry's plethora of sustainability-focused initiatives are largely driven by brand demands. That's led to criticism that those with the most skin in the game have been excluded from conversations about how to bring about change. 'We are dealing with disparate demands from different brands asking for different things. Nobody wants to pay for it,' said Miran Ali, a Bangladesh-based manufacturer who has helped launch a new initiative geared towards giving manufacturers a bigger voice in fashion's climate conversations. At present, brands 'just make a statement and then expect us to pay the bill for it, or my workers to pay the bill, which is even worse,' Ali said. The Apparel and Textile Transformation Initiative aims to address this imbalance. The manufacturer-led programme launched on Thursday in London under the leadership of trade groups the International Apparel Federation and International Textile Manufacturers' Association. 'ATTI has been designed to strengthen manufacturers' leadership and accelerate environmental transformation and sustainability across the apparel and textile sectors,' said Matthijs Crietee, Secretary General of IAF. 'In an era in which industry faces unprecedented challenges, ATTI is a source of great optimism.' The initiative will be formed of country chapters, led by national industry associations, who will be responsible for developing plans to modernise and drive sustainable transformation at a local level in consultation with brands, financial institutions, civil society and policymakers. Pilot chapters have already launched in Bangladesh and Turkey, with more countries expected to join in the coming months. Learn more: Where Is the Money to Make Fashion More Sustainable? Decarbonising the industry is expected to take $1 trillion over the coming decades. Where that money will come from and how it's distributed remain open questions.
Fibre2Fashion
21-04-2025
- Business
- Fibre2Fashion
Tariff uncertainty threatens global apparel industry: IAF
The International Apparel Federation (IAF) represents the apparel manufacturing community across more than 40 countries—a global industry comprising hundreds of thousands of companies and millions of employees. Apparel and textiles are among the most globalized industries, historically foundational to industrial development around the world. The punitive tariffs introduced by the US administration on April 2nd, with the highest rates reserved for countries heavily reliant on garment exports to the U.S., represent a direct and unprovoked threat to entire industries. These measures risk destabilizing economies and jeopardizing the livelihoods of countless employees and entrepreneurs in the apparel industry globally, including in the U.S. itself. IAF has warned against the damaging impact of US punitive tariffs on global apparel supply chains, especially affecting China. While welcoming a partial pause, IAF has stressed that tariff uncertainty continues to destabilise the industry, discourage investment, and threaten livelihoods. It has called for collaborative, sustainable supply chain strategies and urges brands to honour commitments. The IAF welcomes the decision to pause a significant portion of these punishing tariffs. However, the continued application of punitive tariffs on imports from China—one of the world's largest apparel exporters—remains deeply concerning and underscores the real and ongoing risk of tariff escalation for other nations. We implore that future trade negotiations have reasonable goals and that punishingly high tariffs on apparel do not return. Many apparel-exporting countries lack the domestic purchasing power to significantly boost imports from the U.S., making it unrealistic and unreasonable to demand steep trade balance corrections. Likewise, high tariffs will not realistically result in the large-scale return of apparel production to the U.S. For IAF members, what has not been paused is the harm inflicted by the creation of a climate of tariff uncertainty (and, in the case of China a punitive reality). With global supply chains still recovering from the COVID-19 pandemic, the Red Sea crisis, and weakened consumer confidence, the unpredictability of trade policy discourages investment and further undermines market stability and consumer confidence. Preventing the return of these harmful tariffs must be a top priority—followed by restoring a stable, predictable trade environment. Only then can we begin the critical work of re-evaluating global supply chains. To be clear, no supply chain resilience strategy can withstand a tariff tornado of this scale. Nevertheless, going forward, our industry must reduce its vulnerability to sudden policy shifts. This requires expanding the foundation of competitiveness beyond cost alone. The IAF advocates for stronger, smarter, and more sustainable supply chains—anchored more in long-term partnerships, business sense, and mutual interdependence and less dependant on trade political decisions. This has been the IAF's core message in all of its publications and events for the past decade. In line with this, IAF will intensify its global initiatives to empower manufacturers and their associations to act as strategic partners in the industry transition that we need—investing in people, processes, and technology. Resilient supply chains are built together. Weathering this tariff crisis also requires a joint effort. We therefore urge brands and retailers to work collaboratively with manufacturers by honoring sourcing commitments, maintaining standards, and avoiding cost shifts that threaten supply chain viability. The apparel industry is and always will be a global industry, with trade as an integral and indispensable part of it. IAF stands with the global manufacturing community, committed to unity and collective strength to be able to weather this storm and then to move to a stronger position together. Through collaborative approaches and strategic partnerships, we can build a more resilient and sustainable future for the global apparel industry— one that benefits all stakeholders across the value chain and ensures long-term prosperity despite policy turbulence. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (KD)
