Canadian Apparel News

CUSMA renewal - Update June 3, 2026 Over the last few days, there have been a number of developments regarding the renewal of CUSMA - the Canada United States mexico Agreement.  Before that, little public information was available about the status of the discussions  - especially between Canada and the US. We have had a number of questions from member firms: The main issue for this sector to date has been whether the apparel and textile rules of origin and TPL are actively being reviewed.  To date the answer is no.  The second question has been whether the agreement as …

Supply Chains Act Bulletin – Spring 2026 Updates from Public Safety Canada on the Fighting Against Forced Labour and Child Labour in Supply Chains Act (Supply Chains Act) In this edition: Reminder – Upcoming Reporting Deadline Reminder – Reporting Resources Manage your subscription to this bulletin Reminder – Upcoming Reporting Deadline Public Safety Canada would like to remind all reporting entities and government institutions that the annual reporting deadline of May 31 is quickly approaching. The reporting obligation applies to entities and government institutions that are subject to the Supply Chains Act. The annual report must cover measures taken during the previous financial year, …

In a sweeping decision, the US Supreme Court has ruled that the President's constitutional powers do not support many of the tariffs enacted by the Trump administration.  The question presented to the court was whether the International Emergency Economic Powers Act (IEEPA) authorizes the President to impose tariffs. The opinion is clear in the following paragraph:   Held: IEEPA does not authorize the President to impose tariffs.  The judgment in No. 24–1287 is vacated, and the case is remanded with instructions to dismiss for lack of jurisdiction; the judgment in No. 25250 is affirmed.    This decision will have an …

The Taiwan Textile Federation (TTF) has announced the creation of Responsible Recruitment and Employment Guidelines for migrant workers in Taiwan's textile industry, effective December 10, 2025. These guidelines reference international standards, including those from the International Labor Organization (ILO), and aim to ensure legal compliance and protect migrant workers. Key points of the statement include: Employer Pays Principle: The foundation is a commitment by employers to cover the full cost of recruiting, hiring, training, and employing migrant workers, ensuring no worker pays for a job. Anti-Corruption Stance: Mills are urged to refuse payment of extra-contractual, undisclosed, inflated, or illicit fees …

Canada and Indonesia announced a new Comprehensive Economic Partnership Agreement (CEPA) on September 24th. The agreement has been touted by the Canadian government as a significant development. As the press release from the Prime Minister’s Office notes, “We are building our strength at home, diversifying our partnerships abroad, and building a web of new connections to pursue our interests.” It is anticipated that the agreement will take effect in 2026. In the interim, it requires parliamentary review and approval.    The agreement has positives and (somewhat puzzling) negatives:  On the positive side, the apparel rule of origin is a cut-and-sew rule …

U.S. trade officials on Tuesday September 16th started the formal review process for the U.S.-Mexico-Canada Agreement (USMCA), inviting public comment ahead of next year's renewal of the pact.   This starts what is likely to be a highly contentious process, particularly against the backdrop of the tariffs President Trump imposed this year on both countries. USMCA  (CUSMA) entered into force in 2020. The terms of the agreement call for a mandatory joint review in July 2026. If the three countries do not agree to extend the pact, it will then end in 2036. The Office of the U.S. Trade Representative …

In late August, CAF arranged to present a webinar in early September on new DDP arrangements for companies wantting to ship merchandise to the United States through the postal service. Previously low volume shipments could qualify under the de minimis entry.  This was terminated on Aug. 29, 2025. The presenter was to have been Zonos.  They have an agreement with Canada Post and are authorized by the US government to collect duties covering postal shipment.  We have not yet been able to present this overview of the Zonos / Canada Post offering.  This stems from communications policies/restrictions imposed by Canada …

CAF is setting up a working group/committee to bring together CAF member firms with a significant interest in the renewal of CUSMA/USMCA.    A mandatory review of the agreement must take place in 2026.  Contrary to some of the chaos relating to US Tariff actions, there is a legal process in the United States that the administration must (and we believe they will) observe.  This begins with an invitation for public comment which will be published by early October.  While the Canadian government sought input from industry in fall, 2024, it is possible that a new round of information gathering will …

CAF members are now eligible for preferred pricing on Oracle NetSuite. NetSuite is a unified, cloud-based business management platform helping tens of thousands of customers across the globe automate core processes and provide real-time visibility into operational and financial performance.  CAF members can take advantage of preferred  pricing for the starter, standard, and premium editions of NetSuite ERP/Financials.  For more information click here.

August 28 is the deadline for pre-budget submissions.  The federal budget is typically presented in the spring. Due to the timing of the election earlier this year, the government delayed a full federal budget until the fall.  While the timing for the Budget to be tabled remains unclear, the date for pre-budget submissions is August 28, 2025.    CAF intends to submit comments, primarily around tariff issues and other policies that had been outlined in the 2024 Fall Economic Statement (FES). Owing to the resignation of Prime Minister Trudeau, certain provisions of the FES have not been implemented, nor was a …