Textile Executives Stress Importance of USMCA at Roundtable with Congressman Tom Rice

August 21, 2019

WASHINGTON, DC – U.S. textile executives participated in a roundtable today with Representative Tom Rice (SC-07), a key member of the House Ways & Means Trade Subcommittee, at which they discussed the competitiveness of the domestic industry, outlined priority issues in Washington and explored ways to jointly push for passage of the U.S.-Mexico-Canada Agreement (USMCA).

Congressman Rice, a leader on trade and competitiveness issues that heavily impact the domestic textile industry, participated in an executive roundtable hosted by Milliken & Company at its headquarters in Spartanburg, S.C.

“Milliken is honored to host Congressman Rice today to talk about innovation, competitiveness and the importance of passing USMCA,” Jeff Price, EVP of Milliken Operations stated.  “USMCA makes several key updates to NAFTA that will enable our trilateral trade to become stronger, which benefits this key industry in South Carolina. We greatly appreciate the Congressman being here today and appreciate his leadership.”

Congressman Rice stated: “I was honored to participate in today’s roundtable with leaders in South Carolina’s textile industry to discuss the need to pass the USMCA as quickly as possible. Modernizing outdated trade agreements to reflect our 21st century economy will support American manufacturers and enhance our global competitiveness. I will bring the valuable input I received today back to Washington as I continue working to advance the USMCA and keep our economy booming.”

“Congressional passage of the USMCA trade agreement is one of our top legislative priorities this year,” Leib Oehmig, Chairman of NCTO and CEO of Glen Raven noted. “The new USMCA makes several important improvements that would benefit our industry and enhance our three-way trade. We look forward to continuing to work with Congressman Rice to help get this trade agreement over the finish line.”

USCMA would update and replace the 25-year-old North American Free Trade Agreement (NAFTA). The NAFTA supply chain drives approximately $20 billion in annual trilateral textile and apparel trade, up from just $7 billion prior to NAFTA, and is important to the continued growth of the industry. The updated USMCA makes several key improvements, including stronger rules or origin for sewing thread, pocketing, narrow elastics and certain coating fabrics. In addition, it fixes the Kissell Amendment loophole and ensures stronger customs enforcement.  These provisions will benefit our U.S. textile industry.

 

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

  • U.S. employment in the textile supply chain was 594,147 in 2018.
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018.
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018.
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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CONTACT: Kristi Ellis

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NCTO Welcomes Administration’s Inclusion of Finished Apparel & Textile Products on China Tariff List

 

Washington, DC – The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber though finished sewn products, issued the following statement today in response to the U.S. Trade Representative Office’s (USTR) announcement regarding the next steps for the proposed 10 percent tariff on approximately $300 billion of Chinese imports.  NCTO testified most recently on June 20, urging the administration to move forward with tariffs on finished apparel and home textile products.

“As U.S. manufacturers that have suffered enormously from China’s illegal IPR activities and state-sponsored export subsidies, we strongly support the administration’s decision to move forward with this next tranche of 301 retaliatory tariffs that will finally cover a significant portion of China’s exports in our sector,” said NCTO President and CEO Kim Glas.

She continued: “We also believe that the inclusion of products that are within significant Chinese employment sectors like finished apparel, will substantially increase the administration’s negotiating leverage with the Chinese to address systemic trade reforms that are needed. Any such settlement must include short-and long-term reforms that eliminate China’s predatory trade practices in key industrial sectors across the board, such as textiles and apparel.

We are at a critical juncture in terms of global economic trading patterns.  The current trade negotiations with China offer the best opportunity in a generation to restore fairness and market- based competitiveness to a system that has been overwhelmed by China’s illegal and state-planned effort to dominate global manufacturing.

While we are pleased with today’s announced action, we remain concerned that certain inputs already vetted by the administration and removed from previous retaliatory tariff lists remain on this list for proposed duties. We have long argued that adding tariffs on imports of manufacturing inputs that are not made in the U.S. in effect raises the cost for American companies. We urge the administration to uphold these previous exclusions. We also continue to request that the administration include de minimis shipments below $800 on the retaliatory list. The provision creates a significant loophole at a time when the administration is seeking to address China’s unfair trade practices.”

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

  • U.S. employment in the textile supply chain was 594,147 in 2018.
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018.
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018.
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

NCTO Board Member and Auburn Manufacturing Inc. President and CEO Kathie Leonard Named to Ex-Im Bank Advisory Committee

NCTO Board member and President and CEO of Auburn Manufacturing Inc. Kathie Leonard was appointed to serve as the U.S. textile industry representative on the Export-Import Bank (Ex-Im) 2019 Advisory Committee.

Auburn Manufacturing Inc. is a woman-owned manufacturer based in Mechanic Falls, Maine, producing heat-and fire-resistant textiles used worldwide by industries like ship building/repair, foundries, mining, aerospace, power generation and many other heat-intensive industries.

Leonard started the company in 1979 and over the past 40 years has worked tirelessly to build Auburn Manufacturing into a leader in its field, turning 1.5 million pounds of fiber per year into over 2 million yards of fabric.

On both the state and national level, Leonard lends her voice to issues affecting the textile industry, ranging from global trade policy to regulatory issues.

In her role on the Bank’s Advisory Committee, she will provide recommendations on export financing products to the Ex-Im Board of Directors and the Bank’s President.

“Kathie is such a tremendous asset to our industry,” said NCTO President and CEO Kim Glas. “We are pleased the Ex-Im Board has selected Kathie to serve on its Advisory Committee. She will be the voice of the industry at the table and help support the U.S. textile industry, which has seen a significant increase in its exports, particularly to the Western Hemisphere.”

Leonard said: “I’m very pleased to be appointed to EX-IM’s Advisory Committee. As a small U.S. textile manufacturer, we know first-hand how important EX-IM’s financing program is to building sustainable sales relationships around the world.”

“I look forward to being able to provide feedback to the Board on behalf of the textile industry and the small business sector.”

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

  • U.S. employment in the textile supply chain was 594,147 in 2018.
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018.
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018.
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

NCTO supports President Trump’s announced plan to impose a 10% tariff on $300B of Chinese imports

WASHINGTON, DC – The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished sewn products, welcomes President Trump’s announcement today that he will impose a 10% tariff on the remaining $300 billion of imports from China on September 1.

The U.S. textile industry has long supported the administration’s efforts to crack down on China’s abuse of intellectual property rights through the use of the Section 301 mechanism, while also calling on the administration to include finished apparel and home furnishings in any retaliatory tariffs against China.

Chinese imports of finished goods into the U.S. market, which have had the most significant impact and disruption on domestic textile and apparel production, investment and jobs, will finally be included in the administration’s retaliatory tariffs.

“China’s rampant abuse of intellectual property rights and IP theft has gone on far too long at the direct expense of the U.S. textile industry and its supply chain, resulting in the loss of U.S. manufacturing jobs in this critical sector,” said NCTO President and CEO Kim Glas.

“We have long encouraged the administration to include finished products on the tariff list, given China’s rampant intellectual property abuses and the significant impact it has had on our sector.”

Underscoring the penetration by China into the U.S. market, finished apparel, home furnishings and other made-up textile goods equate to 93.5 percent of U.S. imports from China in our sector, while fiber, yarn and fabric imports from China only represent 6.5 percent.

“We believe this move will lead to more re-shoring of production to the United States and the Western Hemisphere production platform—and will also address and mitigate China’s rampant trade distortions,” Glas said.

While we support the inclusion of finished products in Tranche 4 of the retaliatory tariffs, our industry has very serious concerns that certain inputs already vetted by the administration and removed from previous retaliatory tariff lists are on this list. These inputs include but are not limited to: machinery, dyes and chemicals and textile components not available domestically, like rayon staple fiber.

Lastly, we are continuing to urge the administration to apply the 301 retaliatory tariffs to de minimis shipments below $800, which are not currently subject to the tariffs. The administration should close this substantial loophole as part of its efforts to address China’s unfair trade practices.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

  • U.S. employment in the textile supply chain was 594,147 in 2018.
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018.
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018.
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org