Domestic trade policy has been a major topic of discussion for years. Most trade negotiations were conducted relatively diplomatically until the past few years. However, new trade policies are being handled in a much more aggressive manner. Since tariffs can protect domestic jobs, this is good news for both the companies that produce local clothing and the union workers they employ.
While there are both advantages and disadvantages to this approach, companies that produce union made apparel are some of the clear winners. Before the trade policies went into effect, 97% of all apparel that was sold in the United States was produced overseas. This is starting to change dramatically as the new policies are both spurring demand for union made apparel and placing restrictions on foreign apparel companies that are caught abusing human rights and engaging in dangerous environmental practices.
Companies that produce union made apparel celebrate tighter trade policies as naysayers raise unrelated concerns
Harvard Business Review published an article on trade policy back in 2012. They quoted the late President Kennedy claiming that “a rising tide lifts all boats.” The point of Kennedy’s statement was clear in the context of trade policy at the time. He was stating that free trade and strong transfers of goods and services between different countries was a net benefit for everybody.
HBR showed that there were certainly some strong arguments to support this view. However, skepticism became more intense in the following decades as trade deficits increased, particularly after the onset of various recessions. The recession of the 1980s cast shade on the previously unchecked wisdom of President Kennedy, as three million jobs were lost over the following decades.
“Not surprisingly, many Americans blame free trade for their nation’s slide. The Wall Street Journal reported that among Americans earning $75,000 a year or more, 50% now say free-trade pacts have hurt the United States, up from 24% in 1999,” HBR writes.
Companies that produced union apparel and other domestic products often suffered. This contributed to the loss of a number of domestic manufacturing jobs, especially in the apparel and textile industries.
These companies are optimistic about the new trade policies that have been enacted. Even though they may disagree with the policymakers behind them on a variety of other partisan a few points, they have given hope to companies that used to struggle to compete with foreign clothing manufacturers.
New trade policies bring economic benefits to calling manufacturers that use local union workers
There are winners and losers with any economic policy. The new trade policies might be a downside for farmers trying to sell their food abroad. However, there are clear benefits to clothing manufacturers.
Here are some reasons that they have cause to celebrate.
New trade policies are creating new demand for quality union apparel by restricting imports from unethical producers
Local clothing manufacturers had a very difficult time competing, because they clearly had much higher production costs. Companies like Nike paid slave wages to their workers in sweatshops abroad, which meant they could charge much lower fees for their products.
Companies that use union workers are proud to Pay them good wages. The new trade policies are making it easier for these domestic companies with ethical production processes to thrive.
Policies appear to be shifting sentiment towards ethical production processes
The new trade policies are not just creating a market for better locally sourced products by clamping down on unethical manufacturing in other countries. They are also drying attention to a lot of the human rights violations and environmental problems that were created by apparel manufacturers in other parts of the world.
In other words, the new policy is not just forcing the hands of local companies by restricting imports. It is also strengthening organic demand for domestic textile manufacturers at the same time.
New trade policies will remain a boon for union clothing manufacturers
Union made clothing companies are clearly benefiting from the new policies on trade. So are any customers that pride themselves on protecting human rights of workers in other countries and saving the environment from dangerous manufacturing processes.
New trade deals will probably continue to be announced in the coming months. They should be welcomed by anybody that supports union clothing manufacturers.