WASHINGTON, DC – The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber though finished sewn products, provides initial comments on the Phase One deal on 301 tariffs reached between the United States and China today.

“We look forward to reviewing the details of the agreement as it becomes available, including the intellectual property enforcement mechanisms agreed to by both countries.  We have long supported the administration’s efforts to re-balance our trade relationship with China that has significantly eroded our U.S. manufacturing base for decades,” Kim Glas, President and CEO of the National Council of Textile Organizations said.

The proposed announcement means that 301 duties on textile inputs will remain at a 25 percent tariff. Meanwhile, penalty duties on finished apparel and textile products implemented on Sept. 1^st will be reduced from 15 percent to 7.5 percent, and proposed duties on finished products set to be put in place on Dec. 15^th will no longer go into effect.

“NCTO has strongly supported applying tariffs on finished products as key negotiating leverage since textile and apparel production is a key pillar of the Chinese manufacturing economy.  Finished apparel, home furnishings and other made-up textile goods equate to 93.5 percent of U.S imports from China in our sector, while fiber, yarn and fabric imports from China only represents 6.5 percent, according to government data.  Today’s announcement reduces tariffs on finished products at the same time it keeps tariffs in place on key inputs that aren’t made in the U.S. such as certain dyes, chemicals, and textile machinery. We believe a wiser approach would be to maintain penalty duties on finished Chinese products while reducing 301 duties on key inputs that are used by U.S. manufacturers. Doing so will maintain maximum leverage on China to reach a more comprehensive and enforceable intellectual property agreement, while reducing input costs for U.S. manufacturers.  As domestic textile companies fight to compete with China and their illegal trade practices, it is important that U.S. manufacturers should be the first to see penalty duties removed on inputs not made in the United States.

As we review this Phase One agreement, it is important that the administration strike the proper balance of maintaining its leverage with China by keeping duties on finished product until a final strong and enforceable deal with China is completed.  We look forward to reviewing and analyzing the deal in more detail.”

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 594,147 in 2018. 
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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WASHINGTON, DC –  The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber though finished sewn products, welcomes the deal on the U.S.-Mexico-Canada Agreement (USMCA) between the administration and House Democrats and urges the administration and Congress to get the deal across the finish line.

“We are happy to hear a deal has been reached that should help pave the way for USMCA to move forward and we will continue to work for Congressional passage on a clean bill,” said NCTO President and CEO Kim Glas.

“The new USMCA makes several improvements that would greatly benefit the U.S. textile industry and bolster our $20 billion in annual trilateral textile and apparel trade,” Glas added. “U.S. textile exports alone to Canada and Mexico—the industry’s top two export markets—totaled $12 billion last year, underscoring the importance of the trade deal to the industry’s Western Hemisphere supply chain as well as its growth and investment in the U.S.”

The USMCA updates and modifies the North American Free Trade Agreement (NAFTA) and makes significant improvements, including:

• Creation of a separate chapter for textiles and apparel rules of origin with strong customs enforcement language.
• Stronger rules of origin for sewing thread, pocketing, narrow elastics and certain coated fabrics.  Under the current NAFTA, these items can be sourced from outside the region – USMCA fixes this loophole and ensures these secondary components are originating to the region.
• Fixes the Kissell Amendment Buy American loophole, ensuring that a significant amount the Department of Homeland Security spends annually on clothing and textiles for the Transportation Security Administration is spent on domestically produced products.

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 594,147 in 2018. 
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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WASHINGTON, DC – Today, the National Council of Textile Organizations (NCTO) sent a letter to U.S. Customs and Border Protection, calling on the agency to conduct an immediate examination of the trade, economic, and health and safety impacts related to imports that seek de minimis waivers.

CBP recently stated in a Federal Register notice on September 13 that it receives 1.8 million de minimis shipments a day but “faces significant challenges in targeting Section 321 shipments.”

The notice goes on to state the agency does not “receive adequate advance information in order to effectively and efficiently assess the security risk” of those shipments each day.

“We share these fundamental concerns on what is a staggering amount of trade, about which we have virtually no information,” the NCTO letter states.

There has been an explosion in the amount of trade in the current de minimis structure and NCTO believes it is important that CBP release a publicly available analysis outlining the underlying impacts on U.S. manufacturing and our free trade agreement partners.

The full letter can be downloaded here: CBP 321 De Minimis Shipments.

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 594,147 in 2018. 
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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August 21, 2019

WASHINGTON, DC – U.S. textile executives participated in a roundtable today with Representative Tom Rice (SC-07), a key member of the House Ways & Means Trade Subcommittee, at which they discussed the competitiveness of the domestic industry, outlined priority issues in Washington and explored ways to jointly push for passage of the U.S.-Mexico-Canada Agreement (USMCA).

Congressman Rice, a leader on trade and competitiveness issues that heavily impact the domestic textile industry, participated in an executive roundtable hosted by Milliken & Company at its headquarters in Spartanburg, S.C.

“Milliken is honored to host Congressman Rice today to talk about innovation, competitiveness and the importance of passing USMCA,” Jeff Price, EVP of Milliken Operations stated.  “USMCA makes several key updates to NAFTA that will enable our trilateral trade to become stronger, which benefits this key industry in South Carolina. We greatly appreciate the Congressman being here today and appreciate his leadership.”

Congressman Rice stated: “I was honored to participate in today’s roundtable with leaders in South Carolina’s textile industry to discuss the need to pass the USMCA as quickly as possible. Modernizing outdated trade agreements to reflect our 21st century economy will support American manufacturers and enhance our global competitiveness. I will bring the valuable input I received today back to Washington as I continue working to advance the USMCA and keep our economy booming.”

“We welcome Congressman Rice’s participation in the roundtable today as well as his continued support of the U.S. textile industry,” said NCTO President and CEO Kim Glas. “U.S. textile exports to Mexico and Canada totaled $12 billion last year, underscoring the importance of our Western Hemisphere supply chain. This key supply chain has helped drive the $20 billion in investment by the industry over the past decade and has also helped support investment and nearly 25,000 direct textile jobs in South Carolina alone.”

“Congressional passage of the USMCA trade agreement is one of our top legislative priorities this year,” Leib Oehmig, Chairman of NCTO and CEO of Glen Raven noted. “The new USMCA makes several important improvements that would benefit our industry and enhance our three-way trade. We look forward to continuing to work with Congressman Rice to help get this trade agreement over the finish line.”

USCMA would update and replace the 25-year-old North American Free Trade Agreement (NAFTA). The NAFTA supply chain drives approximately $20 billion in annual trilateral textile and apparel trade, up from just $7 billion prior to NAFTA, and is important to the continued growth of the industry. The updated USMCA makes several key improvements, including stronger rules or origin for sewing thread, pocketing, narrow elastics and certain coating fabrics. In addition, it fixes the Kissell Amendment loophole and ensures stronger customs enforcement.  These provisions will benefit our U.S. textile industry.

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 594,147 in 2018. 
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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Washington, DC – The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber though finished sewn products, issued the following statement today in response to the U.S. Trade Representative Office’s (USTR) announcement regarding the next steps for the proposed 10 percent tariff on approximately $300 billion of Chinese imports.  NCTO testified most recently on June 20, urging the administration to move forward with tariffs on finished apparel and home textile products.

“As U.S. manufacturers that have suffered enormously from China’s illegal IPR activities and state-sponsored export subsidies, we strongly support the administration’s decision to move forward with this next tranche of 301 retaliatory tariffs that will finally cover a significant portion of China’s exports in our sector,” said NCTO President and CEO Kim Glas.

She continued: “We also believe that the inclusion of products that are within significant Chinese employment sectors like finished apparel, will substantially increase the administration’s negotiating leverage with the Chinese to address systemic trade reforms that are needed. Any such settlement must include short-and long-term reforms that eliminate China’s predatory trade practices in key industrial sectors across the board, such as textiles and apparel.

We are at a critical juncture in terms of global economic trading patterns.  The current trade negotiations with China offer the best opportunity in a generation to restore fairness and market- based competitiveness to a system that has been overwhelmed by China’s illegal and state-planned effort to dominate global manufacturing.

While we are pleased with today’s announced action, we remain concerned that certain inputs already vetted by the administration and removed from previous retaliatory tariff lists remain on this list for proposed duties. We have long argued that adding tariffs on imports of manufacturing inputs that are not made in the U.S. in effect raises the cost for American companies. We urge the administration to uphold these previous exclusions. We also continue to request that the administration include de minimis shipments below $800 on the retaliatory list. The provision creates a significant loophole at a time when the administration is seeking to address China’s unfair trade practices.”

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 594,147 in 2018. 
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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(202) 684-3091

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WASHINGTON, DC – NCTO Board member and President and CEO of Auburn Manufacturing Inc. Kathie Leonard was appointed to serve as the U.S. textile industry representative on the Export-Import Bank (Ex-Im) 2019 Advisory Committee.

Auburn Manufacturing Inc. is a woman-owned manufacturer based in Mechanic Falls, Maine, producing heat-and fire-resistant textiles used worldwide by industries like ship building/repair, foundries, mining, aerospace, power generation and many other heat-intensive industries.

Leonard started the company in 1979 and over the past 40 years has worked tirelessly to build Auburn Manufacturing into a leader in its field, turning 1.5 million pounds of fiber per year into over 2 million yards of fabric.

On both the state and national level, Leonard lends her voice to issues affecting the textile industry, ranging from global trade policy to regulatory issues.

In her role on the Bank’s Advisory Committee, she will provide recommendations on export financing products to the Ex-Im Board of Directors and the Bank’s President.

“Kathie is such a tremendous asset to our industry,” said NCTO President and CEO Kim Glas. “We are pleased the Ex-Im Board has selected Kathie to serve on its Advisory Committee. She will be the voice of the industry at the table and help support the U.S. textile industry, which has seen a significant increase in its exports, particularly to the Western Hemisphere.”

Leonard said: “I’m very pleased to be appointed to EX-IM’s Advisory Committee. As a small U.S. textile manufacturer, we know first-hand how important EX-IM’s financing program is to building sustainable sales relationships around the world.”

 “I look forward to being able to provide feedback to the Board on behalf of the textile industry and the small business sector.” 

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 594,147 in 2018. 
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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CONTACT: Kristi Ellis

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WASHINGTON, DC – The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished sewn products, welcomes President Trump’s announcement today that he will impose a 10% tariff on the remaining $300 billion of imports from China on September 1.

The U.S. textile industry has long supported the administration’s efforts to crack down on China’s abuse of intellectual property rights through the use of the Section 301 mechanism, while also calling on the administration to include finished apparel and home furnishings in any retaliatory tariffs against China.

Chinese imports of finished goods into the U.S. market, which have had the most significant impact and disruption on domestic textile and apparel production, investment and jobs, will finally be included in the administration’s retaliatory tariffs.

“China’s rampant abuse of intellectual property rights and IP theft has gone on far too long at the direct expense of the U.S. textile industry and its supply chain, resulting in the loss of U.S. manufacturing jobs in this critical sector,” said NCTO President and CEO Kim Glas.

“We have long encouraged the administration to include finished products on the tariff list, given China’s rampant intellectual property abuses and the significant impact it has had on our sector.”

Underscoring the penetration by China into the U.S. market, finished apparel, home furnishings and other made-up textile goods equate to 93.5 percent of U.S. imports from China in our sector, while fiber, yarn and fabric imports from China only represent 6.5 percent.

“We believe this move will lead to more re-shoring of production to the United States and the Western Hemisphere production platform—and will also address and mitigate China’s rampant trade distortions,” Glas said.

While we support the inclusion of finished products in Tranche 4 of the retaliatory tariffs, our industry has very serious concerns that certain inputs already vetted by the administration and removed from previous retaliatory tariff lists are on this list. These inputs include but are not limited to: machinery, dyes and chemicals and textile components not available domestically, like rayon staple fiber.

Lastly, we are continuing to urge the administration to apply the 301 retaliatory tariffs to de minimis shipments below $800, which are not currently subject to the tariffs. The administration should close this substantial loophole as part of its efforts to address China’s unfair trade practices.

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 594,147 in 2018. 
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

WASHINGTON, DC – The National Council of Textile Organization’s (NCTO) Fiber Council announces Ms. Reagan Dunnam, of Florence, SC as the recipient of the 2019 Paul T. O’Day Scholarship Award.  She is the daughter of Jennifer Dunnam, who works for Fiber Industries LLC, and Robert Dunnam.

Ms. Dunnam graduated in June with high honors from West Florence High School.  She will pursue a major in Fashion and Textile Management at NC State University this fall. 

NCTO Fiber Council Chairman David Poston, President of Palmetto Synthetics LLC, commented, “We are pleased to recognize Ms. Dunnam’s exceptional record of academic achievements with her selection as the 2019 recipient of the Paul T. O’Day Memorial Scholarship.  All of us on the Fiber Council congratulate Ms. Dunnam and wish her continued success in her academic career.”

The scholarship program was created in 2014 in honor of Paul T. O’Day who served as President of the American Fiber Manufacturers Association (AFMA) for more than three decades. The Association merged with the National Council of Textile Organizations (NCTO) in April 2018, and NCTO’s Fiber Council now administers the scholarship program.  Recipients receive a $5,000 award each year, totaling $20,000 for four years of study.  Sons or daughters of NCTO’s Fiber Council member company employees are eligible to apply.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

• U.S. employment in the textile supply chain was 594,147 in 2018. 
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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CONTACT: Robin Haynes

(704) 824-3522

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