August 7, 2000 Press Release

SGMA SURVEYS LABELING PRACTICES

The Saipan Garment Manufacturers Association (SGMA) today announced the results of an industry-wide survey on the Saipan apparel manufacturers' labeling practices. The survey, which indicates that 95 percent of the tags leaving the island read, "Made in the Northern Mariana Islands," "Made in Saipan," or "Made in the Commonwealth of the Northern Mariana Islands" sheds new light on competitive motives behind a federal initiative to deny factories the right to claim "Made in the USA," while at the same time retracting the Commonwealth's duty-free and quota-free export privilege into the American market

According to SGMA’s Acting Chairman Richard A. Pierce, the idea of surveying SGMA members actually came from an American legislator that wanted to know more about Saipan’s labeling practices in order to answer his constituency when withdrawing his name as a co-sponsor of H.R. 1621. More commonly known as "The Franks Bill," the legislation seeks to deny the use of the "Made in the USA" label, and cancels tariff privileges under General Headnote 3(a) of the Covenant. There is concern among local leaders that the bill has enough support to call for a discharge petition and be put to a vote. It now sits before the U.S. House of Representatives with 219 co-sponsors and is likely to come to the House floor after the Labor Day recess.

SGMA this week concluded a poll of its membership for the past year’s production to determine whether the factories actually use the ‘Made in the USA of Imported Fabric’ label. The survey indicated that labels currently in common use include, "Made in the Northern Mariana Islands (USA) of Imported Fabric," "Made in Saipan (USA) of Imported Fabric," and "Made in the Commonwealth of the Northern Marianas (USA) of Imported Fabric."

"The results were a little surprising even to us. Although it’s strictly a buyer’s prerogative because buyers and retailers dictate all aspects of our production, approximately 95 percent of the tags leaving Saipan read, ‘Made in the NMI or Saipan or the CNMI,’" said SGMA Acting Chairman Richard A. Pierce. "Of the 31 SGMA members, 18 aren’t even using the ‘Made in the USA’ label that is the hot topic of the Franks bill. Another 10 factories only use the ‘Made in the USA’ label less than 10% of the time. Only one factory uses the label over 50% of the time and this factory is U.S.-owned out of Los Angeles."

The Franks Bill is being touted as the "Made in the USA Label Defense Act," when according to the SGMA official, it is really about eliminating competition through pressure from a labor movement and union activity in a U.S. election year. "It is easy for some U.S. legislators to be sold the rationale that they are protecting American jobs, without accepting the clearly discriminatory aspects of the bill," said Pierce.

"It’s ironic that patriotic websites like ‘Take Pride in America’ have been created that would destroy an American insular possession’s economy through the elimination of an industry that provides 40% of the CNMI’s revenue. Saipan is a part of America. Seven of our factories are in fact U.S.-owned corporations. What about the 7,000 U.S. and other Micronesian jobs that would be lost here 15 days after this passed the U.S. Congresses and could be signed into law?"

Pierce pledged that SGMA will continue to work with groups in Washington and in the CNMI that can carry valuable information to U.S. leaders like the recent SGMA survey. "Our Covenant privileges and the economic value our industry brings to the CNMI are worth fighting for, and it is time that the thinly-disguised competitive motives behind this bill are recognized," said Pierce.