How Has the Uyghur Forced Labor Prevention Act (UFLPA) Affected U.S. Apparel Import?

Abstract

Implemented in June 2022, the Uyghur Forced Labor Prevention Act (UFLPA) prohibits U.S. companies from importing apparel wholly or in part produced in China’s Xinjiang region. UFLPA could significantly alter U.S. apparel import patterns as fashion companies have begun or anticipate adjusting their sourcing base to comply with the law and mitigate the forced labor risks in the supply chain. This study quantitatively evaluated the impacts of the UFLPA on U.S. apparel imports nearly two years after the law’s implementation. Unlike existing studies primarily focusing on UFLPA’s political or legal aspects, this study’s findings enhance our understanding of the economic and trade implications of the new law. The results also provide valuable input, helping fashion companies develop appropriate strategies in response to UFLPA’s implementation and the shifting sourcing environment.