WASHINGTON,
DC– The National Council of Textile Organizations (NCTO), representing the
full spectrum of U.S. textiles from fiber though finished sewn products, issued
a statement today with textile executives stressing the critical importance of moving
ahead with the U.S.-Mexico-Canada Agreement (USMCA) and lauding U.S. Trade
Representative Robert Lighthizer for setting July 1 as the implementation date now
that the U.S. has taken the necessary final procedural steps.
“We
commend Ambassador Lighthizer for moving forward with USMCA, a critical trade
deal that will greatly benefit the U.S. textile industry at a time when
domestic producers–facing significant challenges due to the impact of the
COVID-19 pandemic–have mobilized to convert their production lines to
manufacturing personal protective equipment (PPE) for frontline workers during
this crisis,” said NCTO President and CEO Kim Glas.
“Sustaining
the $20 billion in apparel and textile trilateral trade between the U.S.,
Mexico and Canada is absolutely critical at this time. USMCA, which makes
several key improvements over the former North American Free Trade Agreement
(NAFTA) will go a long way to increasing the textile industry’s exports, as
well as investments and capacity in the U.S. We need to maintain and expand a
Western Hemisphere supply chain to meet national emergencies head on in the
future,” Glas added.
Mexico
and Canada are the two largest export markets for the U.S. textile and apparel
industry, totaling nearly $11.3 billion in 2019.
“I think USMCA is vitally important. It provides this hemisphere with production capabilities to counter Asia and other developing areas,” said Jay Self, president and CEO of Greenwood Mills. “The improved trade agreement offers speed to market and that is such a critical factor not only for our traditional fabric business, but also for our production of face masks and gowns for frontline workers battling the coronavirus. Anything we do to make this hemisphere more competitive is to our advantage.”
Greenwood
Mills, a family-owned textile company in Greenwood, S.C., has converted its
denim jeans production at a factory in Mexico to PPE production of non-medical
face masks and hospital gowns.
“USMCA
creates more certainty in the Western Hemisphere and allows us to have a vision
of how to continue to build the domestic textile platform and supply chain,
while giving us the confidence to re-invest,” said Cameron Hamrick, president
of Hamrick Mills. “This trade agreement makes several improvements, and our
hope is it will spur more investment in the Western Hemisphere. Now is the time
more than ever to have a strong regional supply chain in the Western
Hemisphere.”
Hamrick
Mills is a 119-year-old company based in Gaffney, S.C. and producer of greige
woven fabrics in both polyester/cotton blends as well as 100% cotton. The
company has also pivoted to PPE production to help frontline workers.
“Localized cooperation up and down the supply
chain is of paramount importance to securing our economy in a predictable
manner and as a model for increased investment for all stakeholders,” said
James W. McKinnon, CEO of Cotswold Industries, Inc. “The implementation of
USMCA is critical to the continued health and growth of the U.S. textile
industry and our regional manufacturing partners. It’s times like this
that highlight the importance of a robust regional manufacturing base in the
Western Hemisphere.”
Cotswold Industries is a vertically-integrated
textile engineering and marketing company that manufactures and distributes
technical barriers, knitted and woven industrial fabrics and non-woven
substrates, many of which the company has utilized for the production of PPE
products.
NCTO
worked with the administration during negotiations on USMCA and successfully
lobbied for several provisions and improvements that were
subsequently incorporated in the trade deal that will close loopholes and
strengthen U.S. Customs enforcement.
NCTO is a Washington, DC-based trade
association that represents domestic textile manufacturers, including
artificial and synthetic filament and fiber producers.
- U.S. employment in the textile supply chain was 585,240 in 2019.
- The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019.
- U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019.
- Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.
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CONTACT: Kristi
Ellis
(202) 684-3091
www.ncto.org