EU v USA " match of the year, or a damp squib?

What a start to the Year of the Ox!

It was reported earlier this week that the European Union (EU) had warned of possible trade litigation against the USA if Washington presses ahead with a Buy American provision in its forthcoming economic stimulus bill. EU officials feared such action by the US could set off a wave of protectionist measures from other countries.

It is understood that such a move by the US would violate the provisions of a World Trade Organisation (WTO) treaty signed by the US, EU and Japan whereby signatories to the General Procurement Agreement (GPA) are obliged to open contracts to foreign companies. Later in the week the controversial issue was toned down during the debate in the US senate on Wednesday night.

In Washington the new President is going about the business of appointing his administration. How this new team will handle trade issues remains an unknown quantity although some suggest there could be changes for the better…or worse, depending on which side of the argument you stand?

Other headline news is a possible revolution in the manner apparel is sold, with on-line sales reportedly rocketing over the dismal figures reported by traditional traders (except, it would seem in Hong Kong) over Christmas and the New Year (both Calendar and Lunar).

UK on-line retailer ASOS recently announced record sales for this period and now the famous brand of Woolworths, which recently all but disappeared, is reported to be about to be resurrected by a private investor group to handle on-line sales. Nike report a sharp increase in sales via the Internet and Tesco is to launch its own brand website, joining the fast growing market for on-line fashion shopping.

Is this just the tip of an iceberg about to surface as a major competitive challenge to traditional high street shopping at a time when many are cutting back? Liz Claiborne is reportedly cutting its workforce by 8% - over 700 jobs. Chico's is cutting 180 jobs and the Icelandic company Baugur, with major retail outlets in Britain, has applied for court protection after talks with its lenders failed.

All these critical issues, and many more which affect your industry will come under the microscope at the upcoming Prime Source Forum in Hong Kong: where industry leaders will exchange their views with an informed audience comprising delegates from every corner of the global supply chain.

If you have not done so already, you can register your attendance on-line now by clicking here and join the many who have already confirmed their attendance at your industry's premier industry event during these testing times.

Your views on these issues are also always welcome and would be reported in our Views Exchange feature. Please click here if you have any comment.

Yours Sincerely,

Josephine Ching
Forum and Conferences Manager