NCTO celebrates the release of “Homecoming” by Rana Foroohar, a global business columnist for the Financial Times. Her book outlines why globalization has not delivered on countless economic promises & examines the shift toward localization taking hold in industries like textiles.
WASHINGTON, DC – Textile executives spanning the fiber, yarn, fabric, and finished product textile industries participated in a roundtable discussion with Rep. Greg Murphy (R-NC) today. During the roundtable executives showcased the industry’s innovation, advances in sustainable practices and its important contribution to the North Carolina and the U.S. economy, while raising several priority issues in Washington that have far-reaching implications for North Carolina and the entire U.S. textile industry.
The roundtable discussion, hosted by the National Council of Textile Organizations (NCTO), was held at East Carolina University in Greenville, North Carolina.
North Carolina is the second largest state employer of textile-related jobs with over 36,000 workers, and those jobs play a vital role in supporting 108,000 additional jobs throughout the state. The state’s $2.7 billion in textile-related exports leads the nation.
During the roundtable, executives outlined critical policies, such as the importance of maintaining the yarn forward rules of origin in the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and other trade agreements, advancing the Miscellaneous Tariff Bill and its importance to domestic manufacturers, upholding buy American and Berry Amendment government procurement policies, ensuring the administration is implementing the “Make PPE in America Act” as intended, and the need to address larger systemic trade issues, particularly the use of forced labor, with China.
Congressman Murphy’s visit is critical and comes at a pivotal time for the U.S. textile supply chain, which produced $65.2 billion in output in 2021 and employed nearly 535,000 workers. The industry has been at the forefront of domestic manufacturing of over 1 billion personal protective equipment (PPE) items during the COVID-19 pandemic.
“North Carolina’s textile industry is a huge driver for our economy, directly employing nearly 40,000 workers and generating over $2.7 billion in textile-related exports,” said Rep. Murphy, M.D. “I was grateful to hear from so many outstanding industry leaders during our roundtable today, and I am confident that we have the tools needed to bolster this great industry in our state. As the proud representative for North Carolina on the Ways and Means Committee, it’s an honor to work alongside NCTO to promote American jobs, grow our state economy, and protect domestic manufacturing.”
NCTO President and CEO Kim Glas said, “We sincerely appreciate Rep. Murphy’s participation in today’s industry roundtable, where he heard directly from textile executives with operations in North Carolina about opportunities and challenges confronting the industry. North Carolina has a vibrant textile industry, which employs technologically advanced and highly innovative operations, to produce a vast array of products, including high-tech components for everything from heart valves and stents to aircraft bodies and advanced body armor for our warfighters to critical PPE for the government and private sector. The importance of the U.S. textile industry to the U.S. economy and job growth cannot be overstated. That is why it is imperative that we have sound trade and government procurement policies that not only supports domestic production but also bolster our integrated coproduction chain with our Western Hemisphere trading partners. We look forward to continuing to work with Congressman Murphy on policies that: spur investment in North Carolina, the United States and the entire hemisphere; support strong government procurement policies centered around American-made products; and lead to strong enforcement of illegal trade practices that continue to give China and other countries backdoor to the U.S. market.”
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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
CONTACT:
Kristi Ellis
Vice President, Communications
National Council of Textile Organizations
kellis@ncto.org | 202.684.3091
NCTO President and CEO Kim Glas was at Gaston College earlier this week to voice support for a Memorandum of Understanding signed between North Carolina State University’s Wilson College of Textiles, Gaston College and Catawba Valley Community College and Honduran-based Central American Technological University (UNITEC).
“The intention of this MOU is to help develop the next generation workforce both here in the Unites States and in Honduras with the hope of expanding this to other parts of Central America with the necessary funding,” Glas says in this clip.
The groundbreaking initiative will launch a series of educational workforce development programs, ranging from training and certificate programs to undergraduate and graduate degrees in textile-related areas of study.
Notably, the MOU has the support of the U.S. Department of State, which issued a statement of support on Monday in conjunction with a visit by Jose W. Fernandez, Under Secretary of State for Economic Growth, Energy and the Environment.
Jennifer Knight, Deputy Assistant Secretary of Textiles, Consumer Goods and Materials at the U.S. Department of Commerce and Hector Zelaya, private secretary to Honduran President Xiomara Castro also traveled to the event in support of the new initiative.
The partnership will benefit businesses and workers in North Carolina, Honduras and Central America, and enhance the industry’s ability to compete in the global marketplace.
A co-production chain has been forged between Central America and the U.S. Those links are due to the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), which allows textiles and apparel from Central America to enter the U.S. duty free. It has generated $12.6 billion in two-way trade in the textile sector and now supports more than 1 million jobs in the U.S. and the region – and 36,000 in North Carolina alone.
North Carolina businesses and higher education institutions are partnering with their counterparts in Honduras and Central America and showing how to expand their reach. The next generation of textile workers – and the communities that prosper from a thriving textile industry – will be the beneficiaries.
WASHINGTON – North Carolina educational institutions are joining forces with a key Honduran university to educate and train thousands of students for the next generation textile workforce to meet a rising tide of nearshoring and onshoring in Honduras, Central America and the United States.
With backing from the U.S. Department of State, North Carolina State University, Gaston College, and Catawba Valley Community College signed a Memorandum of Understanding (MOU) with Honduran-based Central American Technological University (UNITEC) today at a signing ceremony at Gaston College in Dallas, N.C.
High-level U.S. and Honduran government officials, including: Jose W. Fernandez, Under Secretary of State for Economic Growth, Energy and the Environment; Jennifer Knight, Deputy Assistant Secretary for Textiles, Consumer Goods and Materials at the U.S. Department of Commerce; and Hector Zelaya, private secretary to Honduran President Xiomara Castro, participated in a roundtable discussion with textile executives and educational leaders as well as today’s MOU signing ceremony.
The U.S. Department of State issued a statement of public support today for the MOU and the unique collaboration between the U.S. and Honduran institutions.
The groundbreaking initiative will launch a series of educational workforce development programs, ranging from training and certificate programs to undergraduate and graduate degrees, in textile-related areas of study.
The partnership comes at a defining moment for the U.S., Honduras and Central America, which are seeing historical levels of investment in textile and apparel production stemming from a global supply chain crisis that has driven a significant shift in sourcing out of Asia to the U.S. and the region. Nearly $1 billion of historic textile and apparel investment is anticipated in the U.S. and Central America this year alone. And this partnership also creates an educational pathway to economic opportunity in Honduras and the region that not only creates a skilled and resilient workforce but can also help to address the root causes of irregular migration.
Current growth projections indicate a need for more than 10,000 new skilled workers in the textile industry in Honduras alone over the next five years. In order to meet these needs, educational programming is needed at all levels.
The U.S. and this region are inextricably linked through a textile and apparel co-production chain under the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) that has generated $12.6 billion in annual two-way trade in the sector and supports 1 million workers in the U.S. and the region.
North Carolina plays a central role in this co-production chain. It is the second largest state for textile employment nationally with over 36,000 workers, and the state’s $2.7 billion in textile-related exports leads the nation. The Northern Triangle, including Honduras, is a major export destination for U.S. yarns and fabrics that come back as finished items under the U.S.-CAFTA-DR trade agreement.
In addition to participating in the signing ceremony and the earlier industry roundtable, Under Secretary Fernandez, Deputy Assistant Secretary Knight and Secretary Zelaya toured two of Gildan’s yarn-spinning facilities in Salisbury, N.C., a leading apparel manufacturer that has invested over $700 million since 2013 across its network of yarn-spinning facilities in the United States.
“The MOU signed today is a win on so many levels. Firstly, it is a win for U.S. textile manufacturers who operate in both the U.S. and Central America as they build more resilient and economically and environmentally sustainable supply chains. Secondly, it’s a win for the Wilson College of Textiles and NC State in advancing its land-grant mission to support economic prosperity and provide transformative opportunities for people of all ages in North Carolina and beyond in collaboration with our community college partners and now UNITEC in Honduras,” said David Hinks, Dean of the Wilson College of Textiles, North Carolina State University. “Together we will train the next generation of textile workers, leaders and academics in this critical production chain. These workforce programs will have a ripple effect throughout Central America, the region and the United States, spurring job growth and more investment, and not just in textiles and apparel. Hundreds of our industry partners that work with our college closely are looking to re-engineer their supply chains out of China to the United States and Central America. This new partnership will provide a near seamless educational and training pathway to building an even stronger textile and apparel co-production chain between the U.S. and CAFTA-DR countries, which collectively supports 1.1 million workers.”
“This is an incredible opportunity to build a partnership and bridge between U.S. educational institutions and UNITEC. Through this collaboration, we will develop education and workforce training programs that will support the vibrant textile and apparel co-production chain between Honduras and the United States,” said Dr. John Hauser, President of Gaston College. “The time is now to invest in the future of the textile and apparel industries, and Gaston College and Catawba Valley Community College look forward to playing a key role in training textile operators to support the impressive growth and investment in this critical sector.”
“By signing this academic MOU, we bring education and industry together between two economies with a strong history of success in the textile industry. This is a great example of creating valuable partnerships aimed at developing the workforce to be more competitive to operate in a global market,” said Dr. Marlon Brevé-Reyes, UNITEC Rector.
Under Secretary Fernandez said, “The United States is very supportive of the academic partnership announced here today which will lead to increased opportunities in co-production and will benefit both the United States and Central America. Investment in workforce and adherence to strong labor standards and good labor practices are essential to creating sustainable and resilient supply chains.”
“President Xiomara Castro welcomes today’s announcement and is actively engaged in creating a good investment climate in Honduras. The MOU signed today will help provide economic opportunities to textile workers in our country and strengthen our ties,” said Secretary Zelaya.
“As we work to create more sustainable and resilient global supply chains, this sector is in a window of opportunity,” said Deputy Assistant Secretary Knight. “The innovations that U.S. and Central American textile and apparel companies create to reduce environmental impact and increase transparency across their supply chains can set them apart from global competitors, and today’s workforce development initiative is a key element in turning this vision into reality.”
National Council of Textile Organizations (NCTO) President and CEO Kim Glas stated, “This partnership demonstrates the critical need for education and training programs for the next generation of academics and textile employees to meet head-on the global sourcing shift that has been driving production out of Asia to Honduras, the entire CAFTA-DR region and the United States. Collaboration on this scale will support our critical co-production chain in the CAFTA-DR region and further enhance investments for the years to come. U.S. and Honduran government support for this private sector collaboration is crucial. We sincerely appreciate the statement of support issued by the State Department, as well as the participation in today’s events by Under Secretary Fernandez, Deputy Assistant Secretary Knight and Secretary Zelaya. It’s important these efforts are supported and funded in order to help expand growth opportunities in the U.S. and Central American textile and apparel production efforts. This is an exciting time for our industry.”
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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
PRESS CONTACTS:
Kristi Ellis
Vice President, Communications
National Council of Textile Organizations
kellis@ncto.org | 202.281.9305
Mary Cullen
Project Specialist
NP Strategy
4141 Parklake Avenue, Suite 200, Raleigh, NC 27612
T: 919.653.7814, C: 630.272.5691
Watch the latest state of play on the China 301 tariffs from NCTO Senior Vice President Sara Beatty. NCTO has long supported tariffs on finished textile and apparel imports from China to hold the country accountable for illegal trade practices and help level the playing field for American companies and create good-paying jobs at home. The U.S. International Trade Commission is seeking written comments through August 24, 2022.
WASHINGTON—Section 301 penalty tariffs on finished Chinese textile and apparel imports give American manufacturers a chance to compete and provide trade officials with an essential trade negotiation tool, the National Council of Textile Organizations (NCTO) told a key government panel today in a formal written submission. Removing them, the association said, would reward China, put U.S. manufacturers at a competitive disadvantage and do nothing to reduce inflation.
Those were among the key points outlined by NCTO President and CEO Kim Glas in a written testimony submitted to the U.S. International Trade Commission during three days of hearings on the economic impact of Section 301 China tariffs and Section 232 steel tariffs on U.S. industries.
The 301 penalty tariffs should be maintained “absent substantive improvements in China’s pervasive, predatory trade practices,” Glas said in her testimony. China’s illegal actions “have put U.S. companies at a serious disadvantage, and tariffs give American manufacturers a chance to compete.” Glas noted that U.S. trade officials have “stressed that the penalty tariffs also create leverage and are a ‘significant tool’ in ongoing negotiations with China.”
While some advocates for lifting the tariffs point to concerns about inflation, Glas said, “canceling these penalty duties would do little to ease Americans’ inflationary pains.” She also noted that “apparel prices out of China continue to hit rock bottom even with the Section 301 tariffs in place. As detailed in an economic study recently released by Werner International, U.S. import prices for apparel from China have dropped 25 percent since 2019 and 50 percent since 2011.”
Glas also warned that lifting the tariffs would have “a substantial negative ripple effect” on U.S. free-trade agreements, including undermining those with Western Hemisphere partners that have established shorter coproduction supply chains and serve other U.S. and regional interests.
The Section 301 tariffs were first imposed in 2018 in response to China’s persistent violations of intellectual property rules. By law, they are now under review.
NCTO represents the full spectrum of the U.S. textile industry, from fibers to finished sewn products.
See the full written submission here.
NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
CONTACT:
Kristi Ellis
Vice President, Communications
National Council of Textile Organizations
kellis@ncto.org | 202.684.3091
WASHINGTON, DC – The National Council of Textile Organization’s (NCTO) Fiber Council announces Ms. Abigail McBee, of Gaffney, SC as the recipient of the 2022 Paul T. O’Day Scholarship Award. She is the daughter of Emily and Douglas McBee, who works for Auriga Polymers/Indorama Ventures in Spartanburg, SC.
NCTO Chairman David Poston, President of Palmetto Synthetics LLC, commented, “We are pleased to recognize Ms. McBee’s exceptional record of academic achievements with her selection as the 2022 recipient of the Paul T. O’Day Memorial Scholarship. All of us on the Fiber Council congratulate Ms. McBee and wish her continued success in her academic career.”
The scholarship program was created in 2014 in honor of Paul T. O’Day who served as President of the American Fiber Manufacturers Association (AFMA) for more than three decades. The Association merged with the National Council of Textile Organizations in April 2018, and NCTO’s Fiber Council now administers the scholarship program. Recipients receive a $5,000 award each year, totaling $20,000 for four years of study. Sons or daughters of NCTO’s Fiber Council member company employees are eligible to apply.
NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
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CONTACT: Robin Haynes
(704) 824-3522
WASHINGTON – The Biden administration should maintain Section 301 penalty tariffs on finished textiles and apparel or risk reversing once-in-a-lifetime nearshoring trends and undermining critical investments and jobs in the U.S. and Western Hemisphere, three key American textile manufacturing groups said today.
In a formal submission to the U.S. Trade Representative’s (USTR) office, which is conducting a four-year statutory review of the tariffs, the associations expressed strong support for the continuation of penalty tariffs on imports from China and warned of the consequences associated with removing the tariffs.
“A key aspect of [the Biden administration’s trade] policy is the need to maintain Section 301 tariffs, absent substantive improvements in China’s pervasive, predatory trade practices,” the groups said. Lifting the tariffs “would also do nothing to achieve the administration’s goal of easing inflationary pressures, as apparel prices out of China continue to hit rock bottom even with the Section 301 tariffs,” they noted.
The submission was filed by the National Council of Textile Organizations (NCTO) and the Narrow Fabrics Institute (NFI) and Industrial Fabrics Institute (USIFI) – both divisions of the Advanced Textiles Association (ATA). The associations represent the entirety of the U.S. textile production chain.
“For decades, China’s illegal actions have undermined virtually every domestic manufacturing sector and contributed to the direct loss of millions of U.S. jobs. These devastating state-sponsored practices include intellectual property theft as well as pervasive state-ownership of manufacturing, industrial subsidies, and abhorrent labor and human rights abuses in the Xinjiang region,” they noted. “Cancelling these tariffs would create further unhealthy dependence on Chinese supply chains and embolden future systematic trade abuses as bad actors know that the U.S. will not hold them accountable.”
The tariffs were imposed on China beginning in 2018 in response to China’s continuing IP and related trade violations. China has since failed to comply with an agreement it reached with the United States in 2020.
See the full submission here.
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CONTACT:
Kristi Ellis
National Council of Textile Organizations
kellis@ncto.org | 202.684.3091
Janelle Buerkley
U.S. Industrial Fabrics Institute/Narrow Fabrics Institute
Janelle.buerkley@textiles.org | 651.225.6948
The National Council of Textile Organizations (NCTO) is a not-for-profit trade association established to represent the entire spectrum of the United States textile sector, from fibers to yarns to fabrics to finished products, as well as suppliers of numerous support services such as trucking, banking, chemicals, and other such sectors that have a stake in the prosperity and survival of the U.S. textile sector. U.S. textile and apparel manufacturers produced $65.2 billion in output in 2021, and our sector’s supply chain employs 534,000 workers from fiber to finished sewn products. NCTO’s headquarters are in Washington, DC. www.ncto.org
The Narrow Fabrics Institute (NFI) is a division of the Advanced Textiles Association (ATA) formerly known as the Industrial Fabrics Association International (IFAI) whose mission is to work on common interests and issues in the narrow fabrics industry. Narrow fabrics are defined as textiles that are no more than 12 inches (300mm) in width and are made by weaving, knitting, or braiding fibers or yarns with an edge to prevent unraveling. The primary product areas of NFI’s member companies include automotive, military, safety, transportation, medical, and others such as aerospace, industrial, pet, recreational, and electronics. The North America market for narrow fabrics is estimated at over $335 million in annual sales. https://narrowfabrics.textiles.org/
The United States Industrial Fabrics Institute (USIFI) is a division of the Advanced Textiles Association (ATA), formerly known as the Industrial Fabrics Association International (IFAI). Member companies manufacture highly-specialized textile products, advanced materials, and components used to support a variety of high-value-added and sophisticated industries. These include the aerospace, automotive, construction, marine, medical, military, and safety/protective gear sectors among others. USIFI currently has 50 member companies, and its headquarters are in Roseville, MN. https://usindustrialfabrics.textiles.org/
WASHINGTON –The main textile and apparel manufacturing trade groups in the United States and Central America sent a joint letter to Vice President Kamala Harris today, outlining critical issues, such as upholding strong rules of origin in the U.S. free trade agreement with the region and maintaining China 301 tariffs on finished apparel imports, ahead of the Summit of the Americas taking place in Los Angeles next week.
The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished sewn products, and the Central America – Dominican Republic Apparel and Textile Council (CECATEC), the main apparel and textile group in the region, thanked Harris for her leadership in helping drive more investment to northern Central America and for the Biden administration’s commitment to strengthening the economic partnership forged between the United States and the region, which supports 1 million collective textile and apparel jobs.
“Perhaps most critical for our collective industries is the administration’s strong support for the “yarn forward” rule of origin in the U.S.-Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), which promotes trade, investment and economic development in the United States and the region. This ensures the benefits of the agreement go to the partners in the agreement, which helps drive massive investment and certainty,” the groups stated in the letter. “The agreement’s strong rules have brought trade and investment to the region and the U.S. and allowed us to compete against highly subsidized industries in Asia often employing illegal trade practices such as the use of forced labor.”
“We continue to urge the administration to hold highly subsidized economies accountable for predatory trade practices that have blatantly undermined our collective industries and our workers. It is critical for the administration to continue to ensure the 301 tariffs remain on finished apparel products that have helped bring diversification in sourcing from Asia and provided opportunities for both U.S. and Central American workers,” they noted. “The tariffs are playing a key role in unlocking investment in the region and the U.S.”
See the full letter here.
NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
CONTACT:
Kristi Ellis
Vice President, Communications
National Council of Textile Organizations
kellis@ncto.org | 202.684.3091
Mobilizing Support for the U.S. Textile Industry in the 21st Century: The National Council of Textile Organizations (NCTO) is a unique association representing the entire spectrum of the textile industry.
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