Everything Old is New Again

By Anne L. DeCicco cae cmp ecam
aldecicco@aol.com

My grandmother used to sing that phrase. It was more of a hum, actually, when she was annoyed at my grandfather. I really had not thought about the tune in years until recently. What brought it to mind was the beginning of the battle this industry is now fighting to prevent the re-imposition of quotas on textile travel goods imported from China.

Old. For years, goods imported from China (and other countries) were subjected to an annual quota set by the United States government and accompanying visa fees established by the exporting country. U.S. travel goods firms celebrated China's accession into the World Trade Organization (WTO) for it heralded the end of the quota system. Imported goods could be produced overseas, shipped to America, distributed to the retailer and eventually sold to the consumer -- at less cost.

The end of the quota system in 2002 came at a particularly good time as the industry was beginning to make a fragile recovery from its virtual collapse in September 2001. U.S. distributors built their business plans for 2002 and beyond based upon the lower costs that would result from a quota-free system. Retailers based their orders upon quota-free products. But "everything that's old is new again."

Earlier this year, the American Textile Manufacturers Institute (ATMI) petitioned the Committee for the Implementation of Textile Agreements (CITA) to re-impose quotas on a variety of textile goods, ranging from women's brassieres to textile travel goods (luggage, handbags, backpacks, flatgoods, etc.). The petition was based on ATMI's claim that since the lifting of quotas, there had been a surge of importing certain textile items from China, at the expense of American travel goods manufacturers. As this industry well knows, only about five percent of its products are domestically produced. Unfortunately, this low number is not new. China's textile luggage export numbers have grown during the past 18 months. This growth, however, is due more to U.S. distributors' advance planning and the moving of Asian factories from Southeast Asian countries to China in anticipation of China's accession to the WTO.

New. If approved, the quotas that will result from the ATMI petition will have a major impact on this industry. However, unlike when quotas were first imposed years ago, now there is a U.S. travel goods industry with a voice and force in Washington, D.C. to fight this potentially devastating action. New is that the Travel Goods Association exists to rally all sectors of the industry to raise their voices in opposition to this proposed injustice. New is that TGA, your industry association, has an entree to many doors in Congress and Congressional agencies previously closed to the industry. New is that TGA has a reputation in Washington, D.C. as a winner, having fought and won battles in the past few years with the airlines, the Bush Administration and Congress, that makes it a desirable partner to other associations and coalitions who are fighting the same or like quota battles.

Association members and non-members often question the value of membership dues. And, if the person defines the value of a membership in terms of dollar savings he or she can realize from benefit programs as short-term "wins," indeed that person may feel that TGA's dues are not valuable. If, however, the member or non-member looks at the bigger picture and understands the progress that has been made in establishing "travel goods" as an industry and giving it a voice, and the importance of that voice in fighting a major industry battle such as the one on the re-imposition of quotas that is before us, then they truly understand the value of TGA's mission -- to promote the growth, profitability and image of the travel goods industry.

New and Old. TGA needs your help. Respond when called upon to contact members of your Congressional delegation. Let TGA know if you have a special relationship (familial, schoolmates, former business partners, etc.) that you have with someone in Washington, D.C. that might be able to support TGA's efforts. Write letters. Send emails. Washington faces may change, but its politics don't. Everything old, in terms of political issues, is new again. But TGA is new and working in new and powerful ways on your behalf.