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NCTO Praises DHS Textile and Apparel Enforcement Plan as a Critical Step to Combatting Pervasive Customs Fraud & Predatory...

April 5, 2024

WASHINGTON – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement welcoming the textile enforcement plan released by Department of Homeland Security (DHS) Secretary Alejandro Mayorkas today as a critical step to combatting import fraud and circumvention of free trade agreement rules and trade laws.

The plan outlines pillars and action items that are essential to improving customs enforcement in response to a wide range of illegal trade practices, as well as fraudulent activities that are worsening the economic crisis facing the U.S. textile industry. The DHS plan comes in response to the industry’s active calls for increased enforcement under free trade agreements (FTAs) and trade and tariff laws.

Statement by NCTO President and CEO Kim Glas:

“We strongly commend DHS for the release of a robust textile and apparel enforcement plan today. We also greatly appreciate Secretary Mayorkas’ personal engagement in this urgent effort and believe it’s a strong step forward to addressing pervasive customs fraud that is harming the U.S. textile industry.

The essential and vital domestic textile supply chain has lost 14 plants in recent months. The industry is facing severe economic harm due to a combination of factors, exacerbated by customs fraud and predatory trade practices by China and other countries, which has resulted in these devastating layoffs and plant closures. DHS immediately understood the economic harms facing the industry and deployed the development of a critical action plan.

NCTO has been actively engaged with administration officials including meeting with Secretary Mayorkas to call for an aggressive public enforcement plan and strong penalties to deter fraud and illegal trade practices that are undermining the domestic industry’s competitiveness. As a result of that meeting, Secretary Mayorkas immediately directed DHS personnel to construct a comprehensive textile and apparel enforcement plan, and we are grateful to DHS for swiftly implementing this urgent plan. 

Our industry requested DHS and U.S. Customs and Border Protection (CBP) take the following essential actions to mitigate this economic harm and to maximize civil and criminal penalties for trade predators, while also creating a significant public awareness campaign. 

The industry requests included:

  • Ramped up textile and apparel enforcement with regard to Western Hemisphere trade partner countries, including onsite visits and other targeted verification measures to enforce rules of origin as well as to address any backdoor Uyghur Forced Labor Prevention Act (UFLPA) violations.
  • Increased UFLPA enforcement to prevent textile and apparel goods made with forced labor from entering our market, including in the de minimis environment. Immediate expansion of the UFLPA Entity List, isotopic testing, and other targeting tools.
  • Intensified scrutiny of Section 321 de minimis imports and a review of all existing Executive Branch authorities under current law to institute basic reforms to this outdated tariff waiver mechanism.  

We welcome the textile enforcement plan which centers around five elements, including: robust inspections and enforcement of UFLPA; expanding audits and increasing foreign verifications of our free trade agreement rules of origin; increasing inspections and testing of small internationally shipped packages in the de minimis environment; expanding the UFLPA Entity List to identify bad actors in the textile environment; and building stakeholder awareness. Taken together, these actions can help combat an alarming rise in fraud, transshipments, and illegal trade in our sector.  We appreciate that these enforcement activities have already been initiated— even before the plan was announced— including increased inspections, audits, and other targeting procedures related to our FTAs and UFLPA.  We value these efforts and the increased public awareness that those who violate trade laws will be held accountable to the maximum extent possible as an effort to deter fraud and uphold the integrity of our critical trade rules. 

We encourage CBP to continue doing the necessary onsite and other verifications to curb rampant fraud and circumvention of FTA and forced labor trade laws. This intensified enforcement will lead to more transparency in textile and apparel supply chains, which support 500,000 U.S. textile workers and 2 million workers in co-production partnerships within the Western Hemisphere.

It’s critical these ongoing actions are backed up by strong civil and criminal penalties to act as a deterrent to bad actors who have been circumventing rules and trade laws and harming U.S. textile and apparel producers as well as our Western Hemisphere trade partners. Punishing the bad actors quickly and amplifying these penalties are essential measures to deterring the illegal trade that is undermining this essential sector.

We also appreciate DHS ramping up inspection of de minimis packages. While this plan is specific to textile and apparel enforcement, it’s important to note that we are aware that the administration is also exploring other avenues, including regulatory changes, to address concerns regarding de minimis shipments. This was a critical request made by our industry and many other stakeholders. We commend the administration’s expeditious review and urge them to close de minimis to the maximum extent possible under their current authorities. This loophole in U.S. trade law facilitates 4 million duty-free packages a day, putting a significant strain on CBP resources, making it virtually impossible to enforce U.S. laws, and significantly hurting domestic manufacturers and retailers.

We also urge Congress, without delay, to pass critically needed comprehensive de minimis reform legislation, given the urgency of the situation and the economic harm this loophole is causing.

We look forward to continuing frequent communication with the CBP and DHS teams to ensure effective enforcement of our trade laws and trade agreements as part of these ongoing and intensified activities for our sector.

We are grateful for all the strong bipartisan support on the Hill in amplifying the urgency of the needs of our sector.  Our industry stands ready and willing to do whatever is necessary to help ensure this plan is a success in stopping predatory trade practices and fraud from undermining this critical industrial base in order to help drive business back home. We are grateful to Secretary Mayorkas and the entire DHS team for this essential plan and are committed to working with DHS in full support of these upgraded enforcement activities. NCTO also looks forward to Secretary Mayorkas’ keynote speech at our annual meeting on April 9th in Washington, D.C.”

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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

Apr 5, 2024 Comments (0) Uncategorized

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U.S. Trade Representative Katherine Tai Visits Glen Raven as USTR Seeks Input from Textile Sector on Domestic Supply Chain...

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.

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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

Mar 22, 2024 Comments (0) Press Releases, Uncategorized

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NCTO Releases Statement Welcoming Textile Enforcement Plan Outlined by Homeland Security Secretary Mayorkas

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.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.684.3091

Jan 31, 2024 Comments (0) Press Releases, Uncategorized

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NCTO Issues Statement Supporting Rep. Jennifer Wexton’s Letter to Homeland Security Secretary to Strengthen Customs Isotopic Testing of Goods...

November 30, 2023

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today in support of Rep. Jennifer Wexton’s (D-VA) letter to Department of Homeland Security (DHS) Secretary Alejandro Mayorkas, urging his agency to step up isotopic testing of imported products containing cotton sourced from forced labor in Xinjiang, China.

The Congresswoman’s press release and letter can be found here.

Statement by NCTO President and CEO Kim Glas:

“I want to sincerely thank Rep. Wexton for raising critical questions and concerns in her letter to Secretary Mayorkas about why more isotopic testing is not being done to ensure the Department of Homeland Security’s compliance with the UFLPA, which bans tainted cotton products and other consumer goods made with forced labor from entering the U.S. market.

It is alarming that slave labor products from Xinjiang are still bleeding into the U.S. market unchecked, as the Reuters news story exposed, which also served to underscore the weaknesses of our government’s efforts to enforce the law. Congress has already allocated significant resources to U.S. Customs and Border Protection (CBP), under the DHS umbrella, for the development, procurement, and application of new technologies such as isotopic testing for cotton fibers and cotton containing products to track the geographic origin of items and inputs from the Xinjiang Uyghur Autonomous Region (XUAR—a region that has become synonymous with forced labor practices and human rights abuses.

It is imperative that CBP step up its overall enforcement efforts, which have shockingly been on the decline in the apparel and textile import sector, and significantly increase its isotopic testing as well as the number of contracted labs it uses.

If DHS does not act swiftly, the vital manufacturing sector that I represent, which produces a broad range of components for consumer goods, critical items such as personal protective equipment, and military products, will be further devastated as factories shutter and job losses mount, while China continues to exploit the government’s ineffective enforcement and reap the rewards of its predatory trade practices.”

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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 |  202.684.3091

Nov 30, 2023 Comments (0) Uncategorized

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NCTO Member Auburn Manufacturing Hosts Deputy Assistant Secretary Jennifer Knight, Highlights Maine Manufacturers & U.S. Textile Industry’s Competitiveness

May 17, 2023

WASHINGTON – Today, National Council of Textile Organizations (NCTO) member Auburn Manufacturing Inc.(AMI) – an industry leader in the manufacture of advanced textiles for extreme-heat environments—hosted Jennifer Knight, Deputy Assistant Secretary for Textiles, Consumer Goods, Materials Industries, Critical Minerals and Metals with the U.S. Department of Commerce’s International Trade Administration, at the company’s state-of-the art manufacturing facility in Auburn, Maine.

A Maine textile manufacturer with over four decades of experience, AMI is a leading producer of fire-and heat-resistant materials, manufacturing the most advanced products to meet U.S. safety standards. AMI textiles are used as protection from extreme high heat in mining, shipbuilding, steelmaking and other critical industries. The company also manufactures end-use products, including a patented, modular removable insulation kit.

During the visit and tour of AMI’s facilities, AMI CEO Kathie Leonard highlighted the company’s important textile innovations and vitally important products that help fuel the Maine economy and contribute to the broader U.S. textile and apparel industry which produced $65.8 billion in output in 2022 and employed 538,000 workers.

Leonard also discussed policy priorities that have far-reaching implications for AMI, Maine manufacturers and the entire U.S. textile industry. She outlined the importance of policies directed at holding China accountable for unfair trade practices and the dumping of products on the U.S. market. Leonard also emphasized the importance of maintaining a domestic textile and apparel supply chain, enforcing “Buy American” policies in government procurement, and closing a legal loophole in U.S. trade law that continues to undermine American manufacturing and give China an advantage. Earlier this year, AMI once again spurred federal action against China, with the Commerce Department officially scrutinizing Chinese exports of silica fabric to the U.S. market.

“We were honored to host Deputy Secretary Jennifer Knight at our Auburn plant,” said Leonard. “It gave us an opportunity to not only showcase AMI’s incredibly advanced technologies, innovation and dedicated workforce but to also discuss firsthand trade policies that impact our daily operations. AMI and this entire industry have weathered severe challenges over the past three years, due to the pandemic, and ongoing pressure from China’s unfair trade practices, but we remain resilient. We appreciated the opportunity to showcase how AMI and the industry can prosper with this kind of collaboration with trade officials like Ms. Knight and the federal government as a whole.”

“SMEs [small and medium-sized enterprises] are the backbone of the U.S. economy and it was my privilege to visit AMI, a state-of-the-art woman-owned U.S. manufacturer which employs 50 and exports its products to more than 30 countries,” said Deputy Assistant Secretary Knight. “ITA’s mission directly supports the strength and resilience of our domestic textile industry by strengthening the global competitiveness of American companies through exports and safeguarding both U.S. industry and workers against unfair trade practices through the rigorous enforcement of trade laws and agreements.”

AMI, an industry leader in the manufacture of advanced textiles for extreme-heat environments, is certified as a Women’s Business Enterprise, operating in two manufacturing facilities located in both Mechanic Falls and Auburn, Maine, and employing over 50 people.

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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.

To schedule an interview with AMI, please contact Luka Ladan at Luka.Ladan@ZenicaPR.com or (617) 932-9120. For more information, please visit AuburnMFG.com.

NCTO CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

May 17, 2023 Comments (0) Press Releases, Uncategorized

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NCTO Member Barnet Hosts Congressman William Timmons (SC-04) to Tout Innovation and Capital Investment in South Carolina’s Vibrant Textile...

May 3, 2023

WASHINGTON, DC – National Council of Textile Organizations (NCTO) member Barnet met with Congressman William Timmons (SC-04) this week at the company’s international headquarters in Spartanburg, South Carolina, where the company manufactures advanced textile materials and is currently expanding operations, underscoring continued growth and investment by the U.S. textile industry.

“As a leader in the Upstate region’s manufacturing of synthetic fibers, polymers, yarns, and other solutions, Barnet welcomed the opportunity to introduce Rep. Timmons to the range of innovative products our team produces here in his district,” said Chuck Hall, Barnet’s president and CEO. “We greatly appreciate the congressman’s support of South Carolina’s textile industry and are grateful for his help addressing many challenges that manufacturers in the state face.”

Barnet is a global manufacturing, recycling, and trading company, specializing in a wide range of fibers, polymers and yarns. Founded in Albany, New York in 1898 by William Barnet, the company has been dedicated to a vision of being the world’s most respected, creative, versatile, and sustainable global solution provider to its customers and suppliers. The company currently employs over 500 associates worldwide.

At Barnet, Rep. Timmons toured the company’s production line for Nega-Stat®, an advanced yarn that eliminates static discharge from fabrics that are used in a range of industrial environments.  Without this protection, a static discharge could damage sensitive electronic equipment or cause an incendiary discharge—potentially leading to an industrial explosion.

The congressman also viewed firsthand Barnet’s new carbon fiber investment at the site, which will expand the company’s production and create new manufacturing jobs.  This investment will produce modified and precision cut carbon fibers for a range of nonwoven, composite, and engineered plastic applications.

Barnet operates three manufacturing facilities in the U.S., employing 300 people.

Barnet is part of the broader domestic textile industry that is a major factor in high-tech and sustainable innovation in the production of everything from heart valves and stents to aircraft bodies and advanced body armor. The entire U.S. textile supply chain produced $65.8 billion in output in 2022 and employed nearly 538,000 workers.

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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 |  202.684.3091

May 3, 2023 Comments (0) Press Releases, Uncategorized

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State of the U.S. Textile Industry Address

March 30, 2023

WASHINGTON, DC—National Council of Textile Organizations (NCTO) Chairman David Poston delivered the trade association’s State of the U.S. textile industry overview at NCTO’s 19th Annual Meeting on March 30.

Mr. Poston’s speech highlighted the impacts of macroeconomic factors on the U.S. textile industry and the resilience of the U.S. textile industry; trade and investment data showing growth in the sector across the board; and NCTO’s policy priorities for domestic textile manufacturers.

“The U.S. textile and apparel industry faced challenging macroeconomic conditions throughout the year,” Poston states in the speech. “Despite these challenges, there were also many positive trends that helped offset some of those pressures, including softening inflation towards the latter half of the year, coupled with a surge in onshoring and nearshoring that led to historic investments, commitments and expansion in the U.S. and the Western Hemisphere.”

A link to his full remarks as prepared for delivery are included in this press statement along with a link to a key facts infographic prepared by NCTO illustrating the current economic status of the U.S. textile industry.

Mr. Poston is President of Palmetto Synthetics, a South Carolina leading provider of specialty synthetic fibers, producing high-quality coarse denier fiber for the abrasives industry, as well as fine denier solution dyed PET.

NCTO’s annual meeting was held at the Grand Hyatt Hotel in Washington March 28-30.

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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 $34.0 billion in 2022.
  • Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org  |  202.684.3091

Mar 30, 2023 Comments (0) Press Releases, Uncategorized

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NCTO Welcomes Vice President Kamala Harris’ Announcement of $585 million in New Textile and Apparel Investments and Sourcing Commitments...

February 6, 2023

WASHINGTON – The National Council of Textile Organizations (NCTO), representing the full spectrum of the U.S. textile industry from fibers through finished sewn products, welcomed Vice President Kamala Harris’ announcement of $585 million in new textile and apparel investments and sourcing commitments in Central America today.

“Over the past year, well over $1 billion of new textile and apparel investments have been announced in Central America and the United States,” said NCTO President and CEO Kim Glas.  “The $585 million of investments and sourcing commitments announced today in the region will continue to build on the strong momentum of growth of nearshoring and onshoring these critical supply chains.”

The investments and sourcing commitments announced today continue to build on the robust textile and apparel co-production chain between the U.S. and Central America,” said NCTO President and CEO Kim Glas. “We sincerely appreciate the administration’s commitment to this critical manufacturing sector that has contributed to the backbone of economic development in Central America and the United States. And we look forward to working with our retail and brand partners to continue to expand our vital manufacturing sector.”

Over the last year, substantial investments have been flowing into Central America, predicated on the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and the co-production chain that facilitates $15.1 billion in two-way textile and apparel trade and supports more than one million workers in the U.S. and the region.

“We saw apparel imports largely containing U.S. textile inputs from the CAFTA-DR region jump 24 percent according to the latest government trade data, and we have seen well over $1 billion in investments in the region,” Glas said.

Several NCTO members previously joined the Vice President last year to announce their investments and sourcing commitments, including Parkdale Mills, Unifi, and SanMar.

“These are just a few of the key investments in the region, which illustrates how this co-production chain is continuing to make sustainable investments that strengthen supply chain resilience, create job opportunities and investment in the U.S. and the region, and ensure transparency in our supply chains, as momentum grows for onshoring and nearshoring textile and apparel production,” Glas said. “That is a win-win for our industry and the region.”

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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 534,000 in 2021.
  • The value of shipments for U.S. textiles and apparel was $65.2 billion in 2021.
  • U.S. exports of fiber, textiles and apparel were $28.4 billion in 2021.
  • Capital expenditures for textiles and apparel production totaled $1.85 billion in 2020, the last year for which data is available.

CONTACT: Kristi Ellis

Vice President, Communications

(202) 684-3091

www.ncto.org

Feb 6, 2023 Comments (0) Uncategorized

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Domestic Textile Groups Tell Biden Administration Penalty Tariffs Counteract China’s Unfair Trade Advantage & Give American Producers a Chance...

WASHINGTON –The Biden administration’s Section 301 penalty tariffs on finished textiles and apparel counteract China’s unfair trade advantages and give U.S. manufactures a chance to compete, two key American textile manufacturing groups told the Biden administration today. Removing tariffs, the associations said, would reward China, put U.S. manufacturers at a competitive disadvantage and do nothing to reduce inflation.

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, representing the entirety of the U.S. textile production chain, expressed strong support for the continuation of current Section 301 penalty tariffs on finished textiles and apparel imports from China and outlined the effectiveness of U.S. tariff actions.

“In some cases, such as on finished apparel, the tariffs have worked to partially offset and counteract China’s unfair trade advantages,” the groups said. “The tariffs on finished textile and apparel items are giving U.S. manufacturers the chance to compete, and we are seeing encouraging investment and growth in moving some production and souring from China back to the Western Hemisphere.”

“The CAFTA-DR [Dominican Republic-Central America Free Trade Agreement] region has seen more than $1 billion in new textile and apparel investment this year, for example, which is historic and due to the textile and apparel rules negotiated under the agreement and sourcing shifts from China,” they added. “This investment and growing U.S. imports from the Western Hemisphere is attributable in part to the 301 tariffs on finished apparel.  The tariffs on finished items in our sector are broadly supported by textile/apparel producers in the hemispheric co-production chain, and it is essential that they remain in place, absent China reforming its practices.”

The submission was filed by the National Council of Textile Organizations (NCTO) and the U.S. Industrial and Narrow Fabrics Institute (USINFI).

The groups have long advocated for a fair, transparent process to remove tariffs on textile machinery, certain chemicals and dyes and limited textile inputs that cannot be sourced domestically to help U.S. manufacturers compete against China.

They also stressed that lifting the tariffs on finished textiles and apparel products from China “will solidify their global dominance in this sector for generations to come and reward their abusive behaviors, exacerbate the migration crisis, hurt domestic manufacturers and workers, undermine our ability to recalibrate essential PPE supply chains, and blunt the positive supply chains shifts and investments in the Western Hemisphere that are happening.” They added it would “do nothing to solve the inflation crisis facing U.S. consumers and manufacturers right now.”

See the full submission here.

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 United States Industrial and Narrow Fabrics Institute (USINFI)  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.  USINFI currently has over 90 member companies, and its headquarters are in Roseville, MN. https://usinfi.textiles.org/

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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

Jan 17, 2023 Comments (0) Press Releases, Uncategorized

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North Carolina Textile Executives Highlight Importance of Industry & Policies Supporting U.S. Competitiveness at Roundtable with Rep. Kathy Manning...

August 9, 2022

WASHINGTON –North Carolina textile executives spanning the fiber, yarn, fabric, and finished product textile industries participated in a roundtable discussion with Rep. Kathy Manning (D-NC) today, at which they discussed the innovative achievements and competitiveness of the domestic industry and outlined priority issues in Washington that impact their daily operations.

The roundtable discussion, hosted by Unifi Inc. and sponsored by the National Council of Textile Organizations (NCTO), was held at Unifi’s headquarters in Greensboro, North Carolina.

North Carolina is the second largest state employer of textile-related jobs, employing more than 30,000 jobs in 2021, according to U.S. government data. The state’s $2.7 billion in textile-related exports leads the nation, according to U.S. government data.

Congresswoman Manning’s visit 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..

During the roundtable, North Carolina executives showcased the industry’s important contribution to the state and the U.S. economy as well as its advanced sustainability initiatives, while outlining critical policies, such as the importance of Buy American and Berry Amendment government procurement policies, maintaining strong rules of origins in free trade agreements, supporting a domestic PPE production sector, and the need to address larger systemic trade issues with China.

“Unifi was thrilled to host Representative Manning with other NCTO leaders today at our Greensboro Headquarters.  We appreciate the time and consideration she gives to the critical issues in Washington that affect our workers and investment here in North Carolina and the entire region.” said Eddie Ingle, Chief Executive Officer of Unifi.

“In North Carolina, the textile industry is woven into the very fabric of our state and economy, with more than 33,000 workers employed in over 600 textile manufacturing facilities across the state. In Congress, I am committed to supporting our homegrown industry by making PPE in America, protecting the yarn forward rule of origin in our trade agreements, and cracking down on China’s unfair trade practices. I am thrilled to engage with industry leaders in my district, as we discuss ways to grow the U.S. textile industry and the critical role that textile manufacturers play in our local, state, and national economy,” said Congresswoman Kathy Manning (NC-06).

NCTO President and CEO Kim Glas said, “We deeply appreciate Congresswoman Manning’s participation in today’s industry roundtable where she engaged in substantive discussions around policies that help bolster U.S. manufacturing, while hearing directly from executives about the challenges confronting our industry. The diverse U.S. textile industry is technically advanced and highly innovative and provides jobs to local communities in North Carolina and across the country. It is imperative that we have sound trade and government procurement policies that help the U.S. industry continue to grow jobs and contribute to the overall U.S. economy. We look forward to continuing to work with the congresswoman on policies that will help drive more onshoring and nearshoring to the U.S. and the Western Hemisphere, support strong government procurement policies centered around American-made products and lead to strong enforcement of illegal trade practices.”

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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 534,000 in 2021.
  • The value of shipments for U.S. textiles and apparel was $65.2 billion in 2021.
  • U.S. exports of fiber, textiles and apparel were $28.4 billion in 2021.
  • Capital expenditures for textiles and apparel production totaled $1.85 billion in 2020, 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 |  202.684.3091

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