Common use of Textiles Clause in Contracts

Textiles. Rules of origin for textiles in CPTPP are treated differently from New Zealand’s other trade agreements. The majority of textile products (yarns including elastomeric yarn, and sewing thread, fabrics including elastic narrow bands, apparel and other made-up textile articles) will need to be manufactured from materials produced within the CPTPP membership in order to qualify for preferential CPTPP tariff rates. To mitigate the impact of some of these restrictive rules, and to take account of production gaps within the CPTPP region, a Short Supply List (SSL) has also been agreed. Products on this list, when used for the specific end-use identified, are deemed to be originating and can be sourced from countries outside the CPTPP. These product lines are largely blended fabrics for use in women’s apparel.