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.”

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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.

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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.

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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 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

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.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org | 202.281.9305

April 17, 2024

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement on today’s House Ways and Means markup of de minimis trade legislation, H.R. 7979.

Statement by NCTO President and CEO Kim Glas:

“We recognize Chairman Jason Smith (R-MO) and Rep. Greg Murphy (R-NC) and the Ways and Means Committee for highlighting China’s systematic abuse of U.S. trade laws in order to put American manufacturers and workers out of business and support its forced labor regime in the Xinjiang Uyghur Autonomous Region under our current de minimis law. This is a crisis of disproportionate impacts that needs urgent comprehensive solutions.  Today’s markup is an initial step, but we underscore with urgency that a comprehensive solution is desperately needed now.  We are strongly committed to working with the committee and with members on both sides of the aisle to urgently close this disastrous loophole once and for all.

While we appreciate the start of this long-overdue conversation, we maintain that congressional action on de minimis must not result in half-measures that do not adequately address the complex aspects of this multifaceted issue and the many unique challenges it poses. Doing so risks leaving the door open to further abuse, as we know that China will continue to exploit any available means to destroy American industries and our social fabric. 

We appreciate Chairman Jason Smith’s statement today on the bill and his work highlighting the impact of de minimis. We appreciate his commitment.  He notes ‘the work doesn’t end here. I am committed to working with members on both sides of the aisle to ensure that we see this issue to the end and make all the necessary reforms to prevent de minimis shipments that violate our law or give an unfair advantage to foreign interests.’  We couldn’t agree more and are committed to doing everything possible to work with Chairman Jason Smith, Ranking Member Richard Neal (D-MA) and the entire committee to help fully address this once and for all.

In that regard, NCTO, which has long called for aggressive de minimis reforms, believes that the bill as introduced needs to be strengthened to comprehensively and effectively restructure this extremely flawed tariff waiver mechanism. Specifically, we do not believe the bill goes far enough in restricting China’s enormous privileges under de minimis. In addition, we strongly believe the bill, at the very least, should preclude de minimis treatment for trade-sensitive sectors, such as textiles and apparel, which according to U.S. Customs and Border Protection accounts for a full 50 percent of all de minimis entries.

America’s textile industry has shuttered a staggering 14 manufacturing plants in the past few months, citing the overwhelming and growing flow of direct-to-consumer, duty-free fast fashion products from Chinese e-commerce retailers like Shein and Temu as a major contributing factor.  Beyond exploiting U.S. manufacturing and our free trade partners, these products have also been shown to contain materials made with Uyghur slave labor. As a result, U.S. textile manufacturing is experiencing a historic economic downturn which can only be described as a five-alarm fire.  NCTO continues to call for real reform of the de minimis loophole with a comprehensive solution that is robust, effective, and enforceable. 

China’s abuse of the de minimis loophole impacts not only American workers and consumers but has also displaced over 100,000 textile and apparel workers throughout the Western Hemisphere, where our free trade partners are forced to compete with China’s unfair de minimis access. This is in addition to concerns outside of U.S. manufacturing, where the de minimis environment is a hotbed of trafficking in illicit goods, illegal products, and other contraband, including deadly fentanyl and its precursors which contribute to approximately 80,000 U.S. fentanyl poisonings each year.

This is a critical moment for action.  We recognize many in Congress who have demonstrated leadership in highlighting and developing strong solutions to this existential threat, including Ways and Means Trade Subcommittee Ranking Member Earl Blumenauer (D-OR) whose own Import Security and Fairness Act would block all Chinese products from qualifying for de minimis benefits.  However, Congress must not let this moment—when comprehensive reform is within reach—slip by.  NCTO is fully committed to working with the House and Senate to strengthen this bill with the necessary updates and safeguards to fully end the abuse of the de minimis loophole by China and others.’’

###

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

We welcome you all here today as we celebrate 20 years of advocacy and impact in our nation’s capital on behalf of the U.S. textile industry.

NCTO represents the full spectrum of the U.S. textile sector – a production chain that employs 502,000 workers nationwide and produces almost $64.8 billion in output annually. We are an essential industry that equips U.S. warfighters and one that pivoted overnight to produce PPE during the COVID pandemic.

The U.S. textile industry has made significant investments in the U.S. Its innovations are unparalleled and its contribution to local communities and the U.S. economy is critical. 

While the domestic textile industry is a key contributor to the U.S. economy and critical part of the military and public health industrial base, our sector is facing a crisis of historic proportions as the result of rapidly deteriorating market conditions coupled with unchecked foreign predatory trade practices and diminished customs enforcement activities. 

On the economic front last year, our industry saw historic inflationary pressures, a severe global slowdown, weak consumer demand, a glut of retail inventory that translated into poor demand for future orders of textiles, and a contraction in manufacturing.

The fallout also extends beyond our borders to hemispheric partners – parties to U.S. free trade agreements, including CAFTA-DR and USMCA – who, along with U.S. textile producers, form an integrated, vertical textile and apparel co-production chain and represent the counterweight to production in Asia. 

To address these troubling trends, the National Council of Textile Organizations (NCTO) has been highly engaged with industry allies in Congress and the Biden administration to confront the severe crisis and challenging issues facing the industry.

NCTO hosted or participated in numerous congressional and administration visits throughout 2023 and into early 2024.

In July, NCTO executives and staff united to participate in a critical Washington fly-in and met with some of the most powerful members of Congress as well as the nation’s top trade chief.

We outlined policies critical to NCTO membership including: closing the de minimis loophole, strengthening Customs enforcement, holding China accountable, strengthening our domestic procurement laws, maintaining the yarn-forward textile rule in CAFTA-DR and other trade agreements, and passing the Farm Bill and Miscellaneous Tariff Bill (MTB), which are so critical to our domestic industrial base.

We are literally making national news every night on de minimis. This is no longer an issue that is on page 3 of national news; it’s on the front pages of the Wall Street Journal, New York Times, and Time Magazine. 

This is a massive, coordinated effort involving NCTO and our industry leaders who have had significant accomplishments that have turned the tide and changed the trends of conversations in Washington.

 We cannot thank those members enough who do so very much to support our activities and go way above and beyond.

Especially given the velocity of things coming at us this year – several members repeatedly came to town like Andy Warlick, Eddie Ingle, David Smith, and so many more listed on the projected slide.

We met with the highest levels of the cabinet and the highest levels of the Congress. Our industry’s effectiveness, breadth, and prowess was noticed by all and the urgency of what we were asking for as an industry became a huge priority for everyone in Washington – no matter the party affiliation.  Just last week, Secretary Mayorkas and the DHS team responded to our urgent calls for a significantly stepped up textile and apparel enforcement plan to help address trade fraud – and that wouldn’t have happened without the concerted effort by the NCTO staff and the members who engaged here in Washington, DC.

NCTO’s work is noted at the highest levels of our government. In July, President Joe Biden made an historic visit to NCTO member Auburn Manufacturing Inc., elevating the U.S. textile industry’s profile and reinforcing its competitiveness and economic contribution. This is the first visit to the industry by a sitting President in decades.

I would like to sincerely thank our staff, led by NCTO President and CEO Kim Glas and the entire hard working NCTO team, as well as our industry leadership for successfully navigating through challenging economic times and polarization in Congress, while partnering with the administration and key congressional offices to secure a number of critical achievements last year.

NCTO’s effective advocacy efforts resulted in a long list of accomplishments in 2023, including: intensifying pressure on Congress and the administration to close the de minimis waiver system and step up enforcement of UFLPA and import fraud; safeguarding the integrity of our free trade agreements; enhancing government procurement of U.S. textile-based products; and maintaining a strong position on China trade enforcement, including tariffs on finished textile and apparel.

Before laying out NCTO’s policy wins in 2023, I want to quickly recap how the industry fared “by the numbers” last year.

BY THE NUMBERS

Given the economic and trade headwinds the industry faced in 2023, the fact that the industry only registered slight declines in some of the key metrics is testament to its resilience and strength.

•    In 2023, the value of U.S. man-made fiber, textile, and apparel shipments totaled an estimated $64.8 billion compared with $67.4 billion, in shipments in 2022. [1]

Here are additional key industry facts:

•    U.S. exports of fibers, textiles and apparel were $29.7 billion in 2023 compared with $33.9 billion in 2022. [2]

•    The United States is the second largest individual country exporter of textile-related products in the world. 

•    The U.S. textile and apparel industry invested $20.9 billion in new plants and equipment from 2012 to 2021, the last year data is currently available for this figure.  Recently U.S. manufacturers have opened new facilities throughout the textile production chain, including recycling facilities to convert textile and other waste to new textile uses and resins.[3]

Onshoring and nearshoring trends continued to strengthen Made in USA production and our vital co-production chain with the Western Hemisphere, while NCTO continued to press for effective enactment of policies in Washington aimed at expanding Berry and buy American rules to fuel growth in American-made products for the military, PPE and federal agencies.

At the end of the day, some key fundamentals for the U.S. textile industry remained sound, while others weakened due to the issues outlined above. We remain committed to growing our businesses and working with the administration and Congress to help shape effective policies that will ensure future expansion of this vital and strategic industry.

While we expect to see ongoing challenges this year, which will test our resolve, we know collectively as an industry this will not weaken our resilience or our innovative spirit.

POLICY ISSUES    

Now, I would like to highlight a few accomplishments NCTO staff achieved during the year.

CUSTOMS  ENFORCEMENT

NCTO actively engaged with the administration and Congress to press for stepped up enforcement against unfair trade practices by China and other foreign competitors, sounding the alarm on the damaging impact this fraudulent activity is having on U.S. textile producers and our Western Hemisphere trade partners.

We called on CBP to immediately step up enforcement against: slave labor in supply chains under the Uyghur Forced Labor Prevention Act, fraudulent origin claims under free trade agreements, “de minimis” shipments that facilitate illegal trade, largely bypass duties and inspection, and put the industry at a competitive disadvantage.

Another significant accomplishment was coordination on a bipartisan letter led by Senate Finance Committee Chairman Ron Wyden (D-OR) calling on U.S. Customs and Border Protection to ensure Chinese companies aren’t evading U.S. laws against forced labor and costing American jobs, by stepping up oversight and enforcement provisions in trade agreements with Central American and North American trading partners. 

As a result of these efforts, Department of Homeland Security (DHS) Secretary Alejandro Mayorkas announced a comprehensive textile enforcement plan to address enforcement concerns raised by the industry just last week – this plan made the top of the Wall Street Journal.

DE MINIMIS

The Section 321 De Minimis provision continued to be at the forefront of congressional scrutiny and hearings, with both Democrats and Republicans weighing in with concerns on this legal provision in U.S. trade law.

The impact of this loophole is devastating, facilitating nearly 4 million imported shipments a day that may contain goods made with forced labor, counterfeits, toxic products, and illicit narcotics such as fentanyl.

NCTO leaders held several meetings with lawmakers and the administration and testified at a key congressional hearing and a roundtable, amplifying the critical need to close this loophole that is hurting our members and giving China a duty-free backdoor to our market.  We worked with allies like Rep. Dan Bishop who held 2 hearings drawing attention to de minimis and how it makes policing the Uyghur Forced Labor Prevention Act impossible  NCTO and our industry is leading the way to close this loophole.

In addition several members of Congress weighed in with letters to President Biden to close this loophole, including a joint letter from Senators Sherrod Brown and Rick Scott, a separate letter led by Sen. Sheldon Whitehouse, and a letter led by Rep. Rosa DeLauro.

Three bills were introduced in 2023 (including bills from Sen. Sherrod Brown and Rep. Earl Blumenauer) to combat de minimis abuse.

In February this year, NCTO worked to build a coalition of diverse stakeholders to launch the Coalition to Close the De Minimis Loophole, representing thousands of voices, from the families of victims of fentanyl fatalities and nonprofit and nonpartisan organizations to labor unions, domestic law enforcement associations, domestic manufacturers, and business associations. 

Several coalition members participated in a press conference with Rep. Blumenauer and other congressional members to elevate the issue, which was covered by several news outlets and have sent numerous communications to the Hill.

There are numerous other issues requiring NCTO’s focus and resources, such as advocating for full enforcement of the Make PPE in America Act, amplifying support for the Section 301case against China’s intellectual property abuses, promoting tariffs on finished products and the need to pass a new Miscellaneous Tariff bill with immediate and full retroactivity.

Due to time constraints, I cannot delve into all these important issues. But please know that without exception, NCTO is highly engaged on every policy matter that affects the U.S. textile industry with the intent of shaping policy determinations in a manner that directly benefits U.S. textile investment, production and workforce. 

Industry leadership and involvement is of paramount importance. From contributions to NCTO’s TextilePAC to arranging congressional visits, the industry can make a difference and help raise the level of awareness about its importance to the overall U.S. economy and workforce, and to the local and state economies it supports.

CONCLUSION:

The business environment for the year ahead will continue to be rife with challenges for our industry and will likely lead to additional plant closures and layoffs, which we have already seen in the first quarter of 2024.

But I remain cautiously optimistic for the following reason: NCTO’s strong advocacy on behalf of the industry in helping institute policies that support our industry, reform ill-conceived policies, and fend off challenges to our strong free trade agreement rules.

In 2024, we will continue to engage with Congress and the administration on critical policy issues impacting our industry and I am confident we will achieve positive policy wins for this industry as a unified voice in Washington.

We will continue to work in conjunction with our Western Hemisphere trading partners and capitalize on the onshoring and nearshoring trends that we are seeing and strengthen our co-production chain, investment and employment.

That concludes my formal remarks.

On a personal note, I have been honored to serve as chairman of a highly effective organization and dedicated staff and I know I hand it over to our new Chairman, who is well-positioned to navigate the headwinds and trade battles.

I truly am optimistic about the innovative strength of the industry and its resilience to economic and trade challenges. With the support of this effective trade and lobbying organization in Washington, we can overcome unforeseen challenges and continue to cement our position as an integral sector to the U.S. economy and the Western Hemisphere.

[1] U.S. Census Bureau, Manufacturers’ Shipments, Inventories, and Orders (M3) Survey, and Annual Survey of Manufacturers (ASM), value of shipments for NAICS 313, 314, 315 & 32522. 2021 data used to estimate 2023 NAICS 32522 ­figure.

[2] U.S. Department of Commerce data for Export Group 0: Textiles and Apparel.

[3] U.S. Census Bureau, Annual Capital Expenditures Survey (ACES), NAICS 313, 314 & 315.

March 22, 2024

WASHINGTON –Glen Raven hosted United States Trade Representative (USTR) Ambassador Katherine Tai in an important visit to the company’s state-of-the-art yarn spinning manufacturing facility and headquarters for its Sunbrella® flagship brand in Burlington, N.C. followed by an industry supply chain roundtable today.

Ambassador Tai’s visit coincides with USTR’s Federal Register notice for public input to inform the administration’s development of trade and investment policy initiatives related to a domestic supply chain resilience plan.

USTR has highlighted domestic textiles as a critical part of the supply chain. The textile sector, which includes yarns, fabrics, apparel and other finished goods, will be part of its fact-finding investigation into shaping policy tools that could be deployed to enhance supply chain resilience. The office is requesting input on policies that are currently working well for these sectors, and those that are not working well, in advancing domestic supply chains.

“We are deeply honored to host Ambassador Tai at our Sunbrella headquarters and yarn-spinning facility in Burlington, North Carolina to demonstrate how the right trade policies can help bolster domestic manufacturing facilities such as ours, facilitate employment, and lead to the expansion and growth of this vital manufacturing sector,” said Glen Raven CEO Leib Oehmig. “We are appreciative of USTR’s review of the strategic textile sector as it diligently examines and shapes policies that will undoubtedly have a significant impact on the entire U.S. textile industry.

During our tour, we highlighted the importance of Glen Raven’s contribution to our local communities and to the overall U.S. economy, while also underscoring the need for strong trade policies to maintain a vibrant domestic supply chain. Our industry has been navigating severe economic and global trade headwinds over the past several months and we sincerely appreciate Ambassador Tai’s commitment to gaining first-hand insight into the challenges confronting our industry in the global trade arena and continuing the dialogue we had here today.”

National Council of Textile Organizations (NCTO) President and CEO Kim Glas said, “We want to sincerely thank Ambassador Tai for visiting Glen Raven today. 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.”

The Ambassador’s visit to Glen Raven included a tour of the Sunbrella facilities, a design and innovation center, and a roundtable discussion with several other textile executives based in North Carolina who highlighted the significant impact of the sector to the U.S. economy.

Glen Raven, a family-owned company founded in 1880, operates five manufacturing facilities in North and South Carolina employing 2,500 people, including their joint venture with Shawmut Corporation. The company is currently in the process of scaling a $250 million multi-phase U.S. capacity expansion plan of its facilities and infrastructure to meet customer demand.

###

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

March 11, 2024

WASHINGTON – The rise in U.S. imports from five Asian apparel producing countries with ultra-low cost pricing structures and ties to China must be scrutinized closely to bring about a recalibration of U.S. trade policies and mitigate the damage to the vital domestic textile supply chain, National Council of Textile Organizations (NCTO) President and CEO Kim Glas told the U.S. International Trade Commission (USITC).

Glas testified before the USITC today as part of research the Commission is conducting on the export competitiveness of Bangladesh, Cambodia, India, Indonesia, and Pakistan. The findings will be included in a report titled “Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States,” which the Commission will submit to the U.S. Trade Representative’s Office.

“While the domestic textile industry is a key contributor to the U.S. economy and critical part of the military and public health industrial base, our sector is facing a crisis of historic proportions as the result of rapidly deteriorating market conditions coupled with unchecked foreign predatory trade practices and diminished customs enforcement activities,” Glas said in her testimony. “Building up to and coinciding with the economic depression that our industry is now facing has been the ascent to top supplier status of the five countries that are the subject of today’s hearing.

“This is no coincidence, and it is imperative to understand and document what makes them so competitive, as well as how this growth has impacted domestic production and the larger Western Hemisphere production chain, to inform the necessary U.S. policy response and recalibration,” she added.

“Unethical cost reduction practices and predatory trade activities plague global textile and apparel production and markets,” Glas said, pointing to the Rana Plaza garment complex disaster in Bangladesh in 2013 that killed over 1,100 people and injured 2,500, as well the most recent U.S. Department of Labor’s List of Goods Produced by Child Labor or Forced Labor released in September 2023, which listed four of the five countries currently under review.

To reverse the current trajectory of this import surge and stop the damage to the U.S. textile industry, Glas recommended the following:

• Reject proposals to expand Generalized System of Preferences (GSP) product coverage to textiles or apparel
• Close the De Minimis tariff loophole
• Dramatically ramp up customs and trade remedy activities
• Address predatory trade behaviors with effective penalties to deter unfair practices

See a link to the full testimony here.

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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 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.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

January 31, 2024

WASHINGTON – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today welcoming a comprehensive textile enforcement plan outlined by Department of Homeland Security (DHS) Secretary Alejandro Mayorkas, following a meeting with several textile industry leaders.

The meeting came in response to increased calls for stepped up textile and apparel enforcement and penalties, as well as the use of the administration’s authorities to close the de minimis loophole hurting the domestic textile industry and its workers.

A readout of the meeting from the office of DHS Secretary Mayorkas can be found here.

Statement by NCTO President and CEO Kim Glas:

“The U.S. textile industry greatly appreciated meeting with DHS Secretary Mayorkas and the senior leadership team on the unprecedented economic calamity facing this strategic supply chain. We discussed how the administration can immediately help our workers and industry.

The industry has lost eight plants in three months. Plants that survived the Great Depression, the Great Recession and COVID aren’t surviving the economic environment due to demand destruction exacerbated by unfair trade practices.

Our industry leaders outlined three critical issues for the Secretary:

• Immediately step up all free trade agreement (FTA) enforcement and maximize penalties
•  Immediately step up all UFLPA enforcement and maximize penalties
• Close the de minimis loophole that is facilitating millions of unchecked packages a day into our market and hurting our industry

The Secretary has committed to working with NCTO and industry leaders on a 30-day immediate textile enforcement action plan. We look forward to working actively with the administration on the details of that plan and ensuring it meets all critical objectives for enforcement and deterrence.

We appreciate the Secretary’s engagement with us and the hard work ahead to ensure this critical resilient supply chain is here long into the future.”

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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 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.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.684.3091