NCTO Urgently Calls on President Biden to Intervene in the Port Strike Exacerbating the Impact on the U.S. Textile...

October 3, 2024

WASHINGTON, D.C.—National Council of Textile Organizations (NCTO) President and CEO Kim Glas sent a letter to President Joseph Biden today asking his administration to intervene in the East and Gulf Coast ports strike that is exacerbating the economic distress facing the U.S. textile industry, which has been hit hard by Hurricane Helene.

See the full letter here.

“We respectfully ask that you urge the parties to reach a reasonable, fair, and expeditious conclusion given your role as a key negotiator and intermediary. The strike at East Coast and Gulf ports threatens not only our domestic competitiveness but also that of the broader Western Hemisphere textile and apparel co-production chain, which supports 2 million workers and $40 billion in annual two-way trade,” the letter reads.

Seventy percent of U.S. textile exports are shipped to the industry’s Western Hemisphere free trade agreement partners, who in turn produce finished apparel and home textile products for the U.S. market. 

“The strike comes at a particularly difficult time when American textile manufacturers are reeling from the destruction of Hurricane Helene. Several companies have been hard hit as a result of this tragedy—some with severe structural damage and others with idled plants” the letter continues. “The industry’s main concern right now is prioritizing the safety and well-being of its employees and their families.  This strike couldn’t come at a worse time as the industry has seen the closure of 21 plants in the last 18 months. We appreciate your leadership in helping mitigate supply chain challenges, as well as your work in support of working families and your work on behalf of the U.S. textile industry. We ask for your urgent assistance in helping to end these widespread supply chain disruptions so that our industry can have a fighting chance to regain its footing amid other serious and ongoing challenges.”

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 501,755 in 2023.
  • The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
  • U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
  • Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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NCTO Calls White House Announcement on Actions Limiting De Minimis a Step Forward; Calls for Comprehensive Action to Address...

September 13, 2024

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement on today’s White House announcement and fact sheet that outlined executive actions to curtail de minimis shipments in addition to other key measures on enforcement and domestic procurement.

Statement by NCTO President and CEO Kim Glas:

“We appreciate the administration’s actions announced today, which represent a step forward in helping mitigate the impact of the de minimis provision.

“We have called on the administration to use its existing executive authorities to limit the severe damage to our industry created by the de minimis loophole. Today, the administration announced rulemaking to limit de minimis treatment for all imported products subject to U.S. trade remedies and penalties, including the Section 301 tariffs. This is an important, common-sense reform and critical first step. We amplify the need to expedite rulemaking to the fullest extent possible and appreciate their strong engagement with our industry. The administration also announced requirements for additional information on de minimis shipments and other enforcement measures.

“Further, the administration underscored the need for a comprehensive solution beyond this action announced today – underscoring the magnitude of the problem, and the inability to effectively enforce our laws with the flood of de minimis packages coming in daily and the need for an urgent solution. We share that same sense of urgency. We are calling on Congress and the administration to work together to immediately close this disastrous loophole once and for all. 

“The U.S. textile industry, a strategic supplier of goods to the U.S. military and PPE is experiencing severe demand destruction fueled by de minimis shipments flooding our market with cheap, illegal imports because of this nonsensical outdated trade loophole. De minimis has facilitated illegal and forced labor products to our doorsteps at the cost of American jobs and our manufacturing sector.

“The flood of boxes coming into the United States under an outdated 1930s trade provision rewards Chinese e-commerce platforms and cheaters with a free trade agreement. It makes detecting illegal products effectively impossible. De minimis hides a black market of goods and puts people and consumers at risk. Half of the 4 million de minimis boxes a day are estimated to be textile and apparel goods – which is why we greatly appreciate the administration calling for the global exclusion of trade sensitive items – including textiles and apparel – from de minimis treatment given the sensitivity of the sector and rampant cheating. If enacted and effectively enforced, this will help significantly bring down the volume of these goods to better detect fentanyl and other illicit and dangerous products and help U.S. Customs and Border Protection (CBP) do its important work in the field with our law enforcement officers. Time is of the essence because there is so much at stake.

“We also underscore the need for Congress and the administration to immediately eliminate this disastrous loophole once and for all in the coming weeks. We will continue pressing for comprehensive reform given the urgency of the crisis – not just for our industry which has lost 19 plants this last year – but for all industries and consumers and families impacted by this loophole.

“Finally, we applaud the administration’s directive on developing a plan for immediate textile and apparel procurement. This is critical to our industry, and we stand ready to supply more goods to the U.S. government. We also appreciate the administration’s stepped-up textile and apparel enforcement efforts over the last few months and their ongoing engagement with this critical industry. Today they announced their efforts to date.  We want to thank Department of Homeland Security Secretary Alejandro Mayorkas, DHS, and the CBP team for prioritizing this at such a critical time.”

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 501,755 in 2023.
  • The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
  • U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
  • Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

 |  202.281.9305

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NCTO Issues Statement on the Passing of Rep. Bill Pascrell (D-NJ), Co-Chair of the House Textile Caucus & a...

August 21, 2024

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today on news of the passing of Congressman Bill Pascrell (D-NJ) this morning.

Statement by NCTO President and CEO Kim Glas:

“The entire U.S. textile industry is mourning the loss of Congressman Bill Pascrell (D-NJ), a true leader and advocate for critical manufacturing policies aimed at bolstering the domestic supply chain and confronting ongoing threats from predatory trade practices.

“We commend his significant contributions – not just to the U.S. domestic industry—but for American manufacturers and workers everywhere.

“Rep. Pascrell had served as co-chair of the House Textile Caucus with Rep. Patrick McHenry (R-NC) since 2013 and was an ardent fighter for the U.S. textile industry and beyond.”

In April, Congressman Pascrell championed a bill titled the Import Security and Fairness Act led by Rep. Earl Blumenauer (D-OR) that would exclude all Chinese imports from de minimis treatment, as highlighted in our blog post on a House Ways & Means markup.

He also penned an op-ed with Congressman McHenry highlighting the urgent need to drive investment and for onshoring and nearshoring textile and apparel production and to not weaken the critical U.S. and Central America  Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).

In addition, he co-sponsored legislation aimed at strengthening the American PPE supply chain which would expand the Berry Amendment to nearly all federal purchases of PPE.

“As is evidenced above, Congressman Pascrell took on every policy battle in support of U.S. textiles and manufacturing in general as an unwavering supporter of maintaining and expanding a vital domestic manufacturing chain.  He worked closely with Rep. McHenry on critical textile issues to advance the cause for our domestic industry and its workforce.

“He will be missed deeply by the industry and to all who knew him. We extend our gratitude to a manufacturing warrior and express our condolences to the entire Pascrell family and his staff and team.”

###

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 501,755 in 2023.
  • The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
  • U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
  • Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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NCTO Releases Statement Welcoming Senate’s Bipartisan Legislation Aimed at Boosting U.S. Investigation & Prosecution of International Trade Crimes

August 1, 2024

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today commending Senator Lindsey Graham (R-SC) and Senator Sheldon Whitehouse (D-RI) for introducing the bipartisan “Protecting American Industry and Labor from International Trade Crimes Act,” a bill that will boost federal investigation and prosecution of international trade crimes and impose strong criminal penalties against offenders.

See a link to the senators’ press release here.

Statement by NCTO President and CEO Kim Glas:

“We sincerely thank Senator Graham and Senator Whitehouse for joining together to introduce this legislation which demonstrates strong bipartisan, bicameral support for this common-sense proposal.

“For too long, import fraud and other trade crimes have harmed vital and strategic domestic manufacturing industries such as the U.S. textile industry, which has lost 18 plants and laid off hundreds of workers in just the past several months. Further, our Western Hemisphere trade partners have also suffered widespread closures and suffered tens of thousands of job losses. As such, these pervasive trade crimes call for strong action.

“This critical legislation achieves just that. It will provide the government the necessary tools to prosecute a range of trade crimes, including products made with forced labor that are evading the U.S. ban on such imports, fraudulent rules of origin claims under our free trade agreements, evasion of duties through abuse of the de minimis loophole, and myriad other predatory practices.

“NCTO has long called for additional federal tools and resources to urgently address the trade crimes impacting our industry as well as other U.S. manufacturing sectors. We believe this bipartisan legislation will address this rampant problem and strengthen investigations and prosecution of this fraud. It is a critical step forward and will hold bad actors accountable, while creating a more level playing field for domestic industries.”

###

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 501,755 in 2023.
  • The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
  • U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
  • Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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NCTO Releases Statement Welcoming New Bipartisan Legislation Aimed at Combating International Trade Crimes & Fraud

July 26, 2024

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today welcoming the introduction of the bipartisan “Protecting American Industry and Labor from International Trade Crimes Act,” a bill that aims to combat trade fraud and hold those committing the crimes accountable.

Statement by NCTO President and CEO Kim Glas:

“We commend Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL), who lead the House Select Committee on the CCP, along with Congresswoman Ashley Hinson (R-IA) and others for introducing this bipartisan legislation that will put real teeth into combating trade crimes that are undermining American textile and apparel manufacturers.

“NCTO has called for additional federal tools and resources to urgently address the pervasive trade crimes impacting our industry as well as other U.S. manufacturing sectors. We are pleased that this legislation will do exactly that by establishing a formal structure within the Department of Justice’s Criminal Division dedicated to aggressively prosecute international trade crimes.

“The U.S. textile and apparel supply chain has been severely harmed by rampant trade fraud, including an onslaught of imported products made with forced labor, which circumvent the U.S. ban on these imports, fraudulent rules of origin claims under our free trade agreements, and evasion of duties through abuse of the de minimis trade loophole. This has resulted in the closure of 18 textile plants over the past several months and job losses, combined with closures in Western Hemisphere trade partners who have suffered tens of thousands of job losses.

“We believe this bipartisan legislation is a critical step forward in confronting such massive fraud and will serve to hold bad actors accountable and help shield our vital domestic industries from these crimes.”

###

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 501,755 in 2023.
  • The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
  • U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
  • Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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U.S. Textile Executives Highlight Industry’s Importance; Underscore Challenges & Policy Priorities During Visit by USTR’s Chief Textiles and Apparel...

June 12, 2024

WASHINGTON, DC – Several National Council of Textile Organizations (NCTO) member companies hosted the newly named U.S. Trade Representative’s (USTR) Chief Textiles and Apparel Negotiator Katherine White at their North Carolina facilities Tuesday and Wednesday as industry leaders provided insights into their state-of-the-art manufacturing facilities and the impact of trade policies on this vital domestic supply chain and local communities.

During White’s inaugural visit to a key hub of American textile manufacturing, U.S. textile executives spanning the fiber, yarn, fabric and finished product textile and apparel industry demonstrated he industry’s innovations and advances in U.S. manufacturing and illustrated the industry’s important contribution to the U.S. economy.

White’s visit comes at a pivotal time for the U.S. textile supply chain, which produced $64.8 billion in output in 2023 and employed more than 500,000 workers. The industry is a key contributor to our national defense and supplies over 8,000 products a year to the U.S. military as well as critical PPE items for national health and safety.

However, the industry is facing severe economic headwinds due to a multitude of economic factors, supercharged predatory trade practices by foreign competitors and insufficient enforcement of trade laws and free trade agreements.

Textile leaders helped provide context about the state of the industry and highlighted the opportunities and challenges confronting it. In total, White visited six U.S. textile plants, including American & Efird, Parkdale Mills/U.S. Cotton, TSG Finishing, Shuford Yarns, Schneider Mills, and Unifi.

White also participated in an industry roundtable at Gaston College Textile Technology Center, at which executives discussed the competitiveness of the domestic industry and outlined urgent priority issues in Washington.

The industry continued to press for: increasing Section 301 China tariffs on finished textile and apparel imports; closing the de minimis loophole; expanding the Western Hemisphere co-production chain and maintaining the yarn forward rule of origin, stepped up customs enforcement of textile and free trade agreement enforcement and penalties, and ways to support domestic supply chains through Buy American and Berry Amendment policies that help to onshore production, spur investment, maintain the safety and security of  U.S. armed forces and generate new jobs.

Chief Textiles and Apparel Negotiator White said, “I want to thank NCTO President and CEO Kim Glas and NCTO member companies for hosting USTR in North Carolina for a tour of domestic textile manufacturing facilities. During the visit we heard from textile industry leaders about the challenges they face in their day-to-day operations and opportunities to enhance the competitiveness and resilience of the textiles sector. President Biden and Ambassador Tai are committed to advancing trade policies that level the playing field for American workers and industries, so they can compete in today’s global economy.”

NCTO President and CEO Kim Glas said, “We want to sincerely thank Katie, who is taking on the role as chief textiles and apparel negotiator at a critical time for this industry. We appreciate her first visit in the new role is to see and meet with our industry first-hand. The U.S. textile industry is one of the most dynamic, innovative industries in the U.S. economy and our co-production chain with our Western Hemisphere trade partners is essential. Trade policies are critical to this manufacturing sector and workforce.”

“Predatory trade practices employed by China and other countries are harming the domestic textile supply chain and our Western Hemisphere trade partners, and our industry is calling for urgent action by our government to address them head on. We are in an urgent economic situation where these serious issues the industry is facing need to be resolved immediately. We believe USTR’s development of supply chain resilience policies is a strong step in the right direction for helping secure the U.S. textile supply chain into the future. We look forward to working closely with Katie and Ambassador Katherine Tai to advance policies that bolster our domestic production.”

###

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 501,755 in 2023.
  • The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
  • U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
  • Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org  |  202.281.9305

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NCTO Issues Statement Commending Department of Homeland Security for Significantly Expanding the UFLPA Entity List & Stepping Up Enforcement...

May 16, 2024

WASHINGTON, DC—National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today praising the U.S. Department of Homeland Security (DHS) for adding 26 Chinese textile companies to the Uyghur forced Labor Prevention Act (UFLPA) Entity List, bringing the total number of entities whose goods are banned from being imported into the U.S. market to 65.  

Statement by NCTO President and CEO Kim Glas

“We commend DHS for significantly expanding the critical UFLPA Entity List and stepping up enforcement of entities that are egregiously trading in slave labor cotton sourced from Xinjiang, China. Slave labor cotton as well as man-made fibers produced in Xinjiang are feeding into clothing made in China and numerous other countries around the world that is destined for the U.S. market, severely undermining U.S. domestic producers.

“Today’s announcement marks an important step forward in following through on anti-forced labor legislation and sends a strong message to known offenders, enterprises and governments that the U.S. government is increasing its enforcement activities and dedication to cracking down on imports of goods made with forced labor.

“Chinese cotton produced with forced labor in Xinjiang is flooding the global marketplace and entering the U.S. market as downstream products. Some 76 percent of all Chinese cotton products contain Xinjiang cotton, which leads to textiles and apparel made with forced labor bleeding into global supply chains, most notably in Asia but also in our free trade agreement regions.  The scourge of slave labor in Xinjiang involves not only cotton but extends to man-made fiber products as well.

“As a result, American textile plants have been forced to close and lay off workers. We have lost 17 textile plants in the past several months due in part to these illegal trade practices that are undermining the industry’s competitiveness.

“While the expanded Entity List is a positive step to increasing enforcement of goods made with forced labor, the list should include more companies outside of China that may be trading in goods and inputs made with forced labor.

“The U.S. also needs to close the de minimis loophole that is facilitating imported slave labor goods, toxic products and illicit fentanyl and other narcotics. Since the vast majority of de minimis imports are uninspected by CBP, this mechanism allows China and others to ship goods with impunity directly to U.S. consumers that violate our slave labor prohibitions and skirt consumer safety standards. 

“In addition, we have recommended to DHS and Customs and Border Protection (CBP) other essential actions to mitigate the economic harm and to maximize civil and criminal penalties against trade predators.

They include:

  • Increased UFLPA enforcement and inspections of imports to prevent textile and apparel goods from entering our market, including in the de minimis environment
  • Immediate expansion of isotopic testing of suspected shipments and other targeting tools
  • Ramped up textile and apparel enforcement with regard to the Western Hemisphere trade partner countries, including onsite production verification visits and other targeting measures to enforce rules of origin and address backdoor UFLPA violations

“The U.S. textile industry is experiencing one of the worst downturns in its history. We welcome today’s actions as part of the robust DHS textile enforcement plan that Secretary Alejandro Mayorkas has announced and begun to implement. It is critical to have all these actions in place to act as an effective deterrent to China and other entities that are harming our domestic manufacturing base.”

###

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 501,755 in 2023.
  • The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
  • U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
  • Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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NCTO Issues Statement on Biden Administration’s Section 301 Tariff Report, Maintaining Penalty Tariffs on Finished Textiles and Apparel Imports

May 14, 2024

WASHINGTON, DC—National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today regarding the Biden administration’s announcement on the U.S. Trade Representative Office’s four-year statutory review of Section 301 tariffs.

As part of the USTR’s final report, the administration will maintain penalty tariffs on finished textiles and apparel imports from China and increase tariffs on certain imports of personal protective equipment (PPE).

Statement by NCTO President and CEO Kim Glas

“It was critical that the administration maintain penalty duties on finished textiles and apparel imports from China and increase tariffs on certain imports of personal protective equipment (PPE), and that was an appropriate and foundational decision. However, we believe an opportunity was missed to address China’s continued dominance in the U.S. textile market and to counter the devastating impact of its predatory and illegal trade practices on domestic textile manufacturers and workers.

“Given rapidly deteriorating market conditions, we ask the administration to help level the playing field to further increase tariffs on finished textile and apparel and certain inputs, as the industry is facing severe economic headwinds due to China’s dumping of products on our market that are flooding the world stage and displacing critical U.S. investments.

“The domestic textile and apparel industry is an integral part of the military and public health industrial base, and a key supplier of critical PPE items that are essential to our national health security. Regrettably, China’s unchecked foreign predatory trade practices coupled with a lack of customs enforcement and misguided trade policy proposals have created an unstable market dynamic that is threatening the future of domestic textile manufacturing.

“The flood of under-valued, subsidized and illegal imports from China is undercutting the competitiveness of domestic textile manufacturers, 17 of which have closed in the past several months – including three announcements over the last few days.  Furthermore, we need the administration and Congress to immediately close the de minimis loophole that is further undermining all trade enforcement efforts and astonishingly rewarding the Chinese with duty free access to the U.S. market regardless of 301 tariffs.

“While the Section 301 tariffs on finished textile and apparel imports help to partially counter China’s unfair trade advantages, subsidized Chinese textile and apparel inputs, including those made from slave labor in Xinjiang where 20 percent of global cotton is produced and where man-made fibers like rayon have been tied to forced labor, continue to undermine this vital industry. 

“Furthermore, China has been dropping its prices since the tariffs took effect to convince sourcing agents to stay loyal despite the risks. According to U.S. import data, the dollar value per square meter equivalent of textiles and apparel from China fell an astounding 34 percent over from $1.21 per SME in 2018 to $0.80 for the most recent 12-month period ending March 2024.

“According to the U.S. Department of Commerce, China has increased its textile and apparel shipments to the U.S. by a stunning 20.5% during the first quarter of 2024. Over the same period, our most critical coproduction partners in the United States-Mexico-Canada Agreement (USMCA) and Dominican Republic-Central America- Free Trade Agreement (CAFTA-DR) regions are down 45.2% and 4.6% respectively. The Western Hemisphere is down an incredible 31.9% so far this year. The message is clear: China continues to take Western Hemisphere market share as they flood the world stage directly and indirectly, with subsidized and often illegal exports of textile and apparel products.

“We commend the administration for substantially increasing tariffs on certain Chinese imports, including electric vehicles, solar products and batteries, as part of their review. This moment calls for an increase in tariffs on finished textile and apparel imports. We recognize there are many sectors suffering at the hands of China’s illegal and predatory activity, and the substantial increase in penalty tariffs on these imports by the administration was warranted—just as they are in the U.S. textile sector.

“To have maximum and meaningful impact for the vital American textile industry, the administration must consider dramatically increasing tariffs on finished textile and apparel imports from China, similar to the levels announced in certain sectors today.  Ramping up tariffs on finished textile and apparel imports would help equal the playing field and restore this industry’s competitiveness and address China’s predatory behavior destroying critical jobs in this strategic industry that supplies lifesaving products for our U.S. military and our PPE industrial base.”

###

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 501,755 in 2023.
  • The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
  • U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
  • Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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NCTO Outlines Immediate Steps U.S. Can Take to Reverse Downward Trajectory in U.S. Textile Manufacturing & Counter Predatory Trade...

May 2, 2024

WASHINGTON, D.C. –National Council of Textile Organizations (NCTO) President and CEO Kim Glas told the U.S. Trade Representative’s Office (USTR) today the U.S. must be more deliberate in developing trade and investment policies that support the growth and resilience of the vital domestic textile industry and counter China’s dominance through illegal trade practices.

Glas testified at a USTR hearing held at the U.S. International Trade Commission today as part of the agency’s supply chain review on promoting supply chain resilience. During the hearing, the industry outlined concrete steps the administration and Congress could immediately take to help build a strong, resilient supply chain. 

“We sincerely thank U.S. Trade Representative Ambassador Katherine Tai and the USTR team for leading this endeavor. We are particularly grateful to Ambassador Tai for her recent visit to North Carolina and participation in a roundtable with our industry to amplify USTR’s supply chain efforts and ensure broad participation from stakeholders in this critical analysis to bolster domestic resiliency,” Glas said.

“While the domestic textile industry is an integral part of the military and public health industrial base, unchecked foreign predatory trade practices, a lack of effective customs enforcement, and misguided trade policy proposals are creating unstable and unsustainable market dynamics,” Glas said in her testimony. “The confluence of these factors is threatening the future of domestic textile manufacturing as well as the textile cand apparel coproduction chain between U.S. and our Western Hemisphere free trade agreement (FTA) partners responsible for $40 billion in annual two-way trade.”

No fewer than 14 U.S. textile factories have been permanently shuttered in recent months, and an estimated 100,000 jobs have been lost in the U.S. and broader hemisphere, she said.

Notably China and other Asian countries compete by “sourcing subsidized textile inputs from China, including those made from slave labor in Xinjiang where 20 percent of global cotton is produced and where synthetics like rayon have been tied to forced labor production” and “a wholesale lack of meaningful labor and environmental standards,” she stated.

“One of the most important actions Congress and the Biden administration can take to counter these illegal trade practices is to close the de minimis loophole. This loophole in U.S. trade law allows 4 million packages a day to enter the U.S. duty free and largely uninspected. Customs and Border Protection reports that textile and apparel goods comprise an estimated half of these entries and China is the largest beneficiary.  These entries are not subject to Section 301 duties and have been linked to Uyghur Forced Labor Prevention Act (UFLPA) violations as well as dangerous and counterfeit goods and illicit drugs like fentanyl and precursors. The administration must use its existing authorities to close this dangerous loophole and Congress must act immediately to pass legislation to completely close it,” Glas noted.

A textile and apparel enforcement plan released by the Department of Homeland Security and Secretary Alejandro Mayorkas in early April is an important first step to combatting fraud and circumvention of free trade agreement rules and trade laws —  it must be continuous and aggressive with penalties to help deter fraud and illegal trade activities,” Glas said.

To reverse the current downward trajectory in U.S. textile manufacturing and stop the damage to the industry, Glas recommended the following:

  • Immediately Close the De Minimis tariff loophole
  • Dramatically ramp up and publicize customs enforcement and trade penalty activities
  • Preserve and protect the yarn forward rules of origin
  • Reject proposals to expand Generalized System of Preferences (GSP) product coverage to textiles or apparel
  • Immediately pass the Miscellaneous Tariff bill
  • Increase Section 301 penalties on textiles and apparel imports
  • Fully implement the Make PPE in America Act and expand procurement opportunities
  • Enhance tax incentives to bolster domestic and regional production

“China is being highly strategic and purposeful in their quest for and success in gaining a stranglehold on the global supply of critical products like textiles.  The U.S. must be more deliberate moving forward and not leave this challenge by an increasingly hostile geopolitical rival unanswered.  Absent a course-correction to properly prioritize and bolster domestic manufacturing, the consequences in the next crisis will be severe and manifold,” Glas said.

See a link to the full testimony here.

###

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 538,067 in 2022.
  • The value of shipments for U.S. textiles and apparel was $65.8 billion in 2022.
  • U.S. exports of fiber, textiles and apparel were $34 billion in 2022.
  • Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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NCTO Elects Parkdale Mills’ Charles Heilig as Chairman; Barnet’s Chuck Hall as Vice Chairman

April 26, 2024

WASHINGTON, DC—The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished sewn products, held its officer elections for fiscal year 2024 at its annual meeting April 9-11.

NCTO has elected Charles Heilig, President of Parkdale Mills, as Chairman; and Chuck Hall, President and CEO of Barnet, as Vice Chairman.

In addition to the appointment of a new chairman and vice chairman, NCTO elected chairs for each of its five councils. NCTO is comprised of five councils to ensure a broad representation of the industry supply chain. Each council has an allotted number of members who are elected to the association’s Board of Directors, in addition to the Executive Committee.

“I am pleased to announce our new officers, council chairs, and board and executive committee members for NCTO’s 2024 fiscal year,” said NCTO President and CEO Kim Glas. “I want to thank our new Chairman Charles Heilig and Vice Chairman Chuck Hall for stepping into these critical roles and their vital contribution to the Board and NCTO. As we navigate the challenging times ahead, their input and leadership will be invaluable, and we will work together to advocate for policies that help bolster the U.S. textile industry and our Western Hemisphere partners and deter policies that are detrimental to this vibrant domestic supply chain, employing more than 500,000 workers. “

Elected as NCTO Chairman and Vice Chairman for 2024:

  • Chairman – Charles Heilig President of Parkdale Mills

Mr. Heilig is President of Parkdale Mills, based in Gastonia, North Carolina, a leading American manufacturer of yarn and cotton consumer products.

  • Vice Chairman – Chuck Hall, President and CEO of Barnet based in Spartanburg, South Carolina, a 125-year-old manufacturer of technical textiles.

Elected to the NCTO Board of Directors during the various Council meetings were the following:

Fiber Council – David Adkins of Lenzing; John Freeman of Nan Ya Plastics; and Melissa Stewart of The LYCRA Company

Yarn Council-Justin Ferdinand of Kentwool; Peter Iliopoulos of Gildan; Eddie Ingle of Unifi; Eric Noe of Buhler Quality Yarns; Marvin Smith of Shuford Yarns; and Jay Todd of Service Thread

Fabric and Home Products Council – David Smith of Milliken & Company; James McKinnon of Cotswold Industries; Blake Millinor of Valdese Weavers; Leib Oehmig of Glen Raven; Dan Russian of Sage Automotive Interiors; and Walter Spiegel of Standard Textile

Finished Textiles and Apparel Products Council – Marisa Fumei-South of Two-One-Two New York (Alternate: Gabrielle Ferrara of Ferrara Manufacturing)

Industry Support Council – Todd Bassett of Fi-Tech; Greg Duncan of American Truetzschler; and Jim Reed of YKK Corp.

Elected by their respective Councils to serve on the Executive Committee:

David Adkins, Lenzing; Eddie Ingle, Unifi; Marvin Smith, Shuford Yarns; David Smith, Milliken & Company; James McKinnon, Cotswold Industries; Marisa Fumei-South, Two-One-Two New York; Gabrielle Ferrara, Ferrara Manufacturing; and Todd Bassett, Fi-Tech.

NCTO Chairman Charles Heilig has elected additional executives to serve on the Executive Committee: Anderson Warlick of Parkdale Mills; Norman Chapman of Inman Mills; John Maness of Gildan; Amy Bircher Bruyn of MMI Textiles; and Jackie Ferrari of American Fashion Network.

Elected to chair the Councils:

Fiber Council: David Adkins of Lenzing

Yarn Council: Justin Ferdinand of Kentwool

Fabric and Home Products Council: David Smith of Milliken & Company

Finished Textiles and Apparel Products Council: Marisa Fumei-South of Two-One-Two New York.

Industry Support Council: Todd Bassett of Fi-Tech

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 501,755 in 2023.
  • The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
  • U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
  • Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org | 202.281.9305

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