NCTO Testifies at U.S. International Trade Committee Hearing on USMCA

WASHINGTON, DC – The U.S. International Trade Commission (ITC) held a public hearing on November 15-16 in Washington, D.C. as part of its investigation of the likely impact of the U.S.-Mexico-Canada Agreement (USMCA) on the U.S. economy.

National Council of Textile Organizations (NCTO) President & CEO Auggie Tantillo testified on Panel 4, General Manufacturing, on Friday, November 16, the hearing’s second day.

Tantillo’s testimony as prepared for delivery is below:

Testimony of Auggie Tantillo, President and CEO
National Council of Textile Organizations

U.S. International Trade Commission Hearing on the
United States-Mexico-Canada Agreement 

November 16, 2018

On behalf of the National Council of Textile Organizations (NCTO), thank you for the opportunity to provide input regarding the recently negotiated United States-Mexico-Canada Agreement (USMCA).  NCTO represents the full spectrum of the U.S. textile sector, from fibers to yarns to fabrics to finished products, as well as suppliers of machinery, chemicals, and other products and services with a stake in the prosperity of our industry.  The entire U.S textile manufacturing chain, from fiber through finished sewn products, employs 550,000 workers nationwide.  In 2017, the industry manufactured nearly $78 billion in output, while exporting more than $28 billion of our production.

I want to preface my remarks by stating that NCTO has not yet adopted a formal position on USMCA.  We have produced a detailed internal analysis on the agreement for our members and have solicited their feedback.  Once we have reviewed input from our membership, the NCTO Board will come to final position that we will then make public.

With that said, it is important to note that the United States, Canada, and Mexico have built a vibrant and prosperous textile production chain over the 24-year life of the North American Free Trade Agreement (NAFTA).  In 2017, total textile and apparel trade between the three countries was approximately $20 billion.  U.S. exports accounted for more than $11 billion of this trade, with Canada and Mexico serving as our two largest export markets worldwide.

These figures compare to just $7 billion in textile trade between the three countries in 1993, the year prior to NAFTA’s implementation.  An understanding of this data validates that the current, yarn-forward structure embedded in NAFTA has been highly successful, providing significant benefit to North American manufacturers throughout the entire textile production chain.

It is for this reason that NCTO is very pleased that the basic textile origin rules adopted originally in NAFTA were essentially reaffirmed in USMCA.  Further, we commend the three governments for creating a separate textile chapter in the new agreement as opposed to relegating textiles to an annex of the broader market access provisions.  A stand-alone chapter recognizes the sensitivities associated with trade in this sector and allows for unique provisions, such as separate and enhanced customs enforcement language over the original NAFTA.  Enforcement is critical in the textile sector as the lucrative duty-free benefits create enormous incentives for fraud.

In terms of changes to the original text, NCTO is very supportive of revisions that will require the use of USMCA-origin sewing thread, pocketing, narrow elastics, and coated fabrics in certain end items.  While there are transition periods associated with these new requirements, their ultimate inclusion should offer a boost for U.S. producers formerly left out of the origin rules in the original NAFTA.  We estimate the USMCA market to be $250 million annually for sewing thread for apparel applications and $70 million annually for pocketing.

We are also appreciative of a key change made in the Government Procurement Chapter of USMCA regarding the Kissell Amendment, which is a Buy American statute for textiles that applies to the Department of Homeland Security (DHS).  Kissell requires 100% U.S. content, with very limited exceptions, for purchases by the Coast Guard and Transportation Security Administration (TSA).

Regarding TSA procurement, Kissell has a problematic loophole tied to NAFTA that has allowed Mexico to supply these contracts.  As a result, under the terms of NAFTA, Mexico can supply TSA uniforms made from Mexican fiber, yarn, and/or fabric.  The TSA Mexico loophole translates to a significant weakening of U.S. Buy American statutes.  Noting that DHS spent $34 million on clothing and textiles for TSA in FY2017, closing the Kissell loophole was a substantive change from NCTO’s perspective.

While all the items mentioned to this point are clear improvements to the original NAFTA, there was one key area of disappointment, from our perspective, with USMCA.  NAFTA incorporated a major exemption to the yarn-forward origin requirement through a system of Tariff Preference Levels (TPLs). TPLs allow products to be shipped duty free among free trade partner countries even though the components within the product are sourced from countries that are not signatories to the agreement.

While NAFTA TPLs have annual limits that cap their impact to a degree, more than $641 million in textile and apparel TPL shipments entered the U.S. last year.  As such, eliminating the TPLs was a primary focus of NCTO’s in the NAFTA renegotiation.  While USMCA did reduce the size of some specific TPLs, the reductions will not cut into existing trade levels.  This outcome is frustrating given the President’s stated goals of increasing benefits for U.S. manufacturers and eliminating provisions that have helped non-signatory countries, such as China, take advantage of tariff preferences intended for North American producers.

Conclusion

As stated earlier, NCTO is not yet in a position to communicate a formal position on USMCA.  We hope to have a decision finalized soon, which will be shared with both the Administration and Congress as soon as we complete our review process.

Nonetheless, it is accurate to state that in an overarching fashion, the new agreement is an improvement over the original NAFTA in many areas.  This is certainly the case for U.S. manufacturers of component parts such as thread, pocketing, narrow elastics, and coated fabrics.  There is also a clear victory on the Kissell amendment and a strong upgrade in customs enforcement.  With our strong disappointment in the TPL outcome noted, we are also grateful for the Administration’s willingness to work with domestic manufacturers in an effort to improve this important agreement.

Thank you for this opportunity to provide input, and I would be pleased to answer any questions that you may have at this time.

[NCTO testimony as prepared for delivery end]

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 550,500 in 2017.
  • The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017.
  • U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017.
  • Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

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Large Gift to North Carolina State University’s Textile School Will Help Mold Next Generation of U.S. Textile Leaders and...

WASHINGTON, DC – Thanks to a $28 million gift from alumnus Frederick “Fred” Eugene Wilson Jr. and his family, North Carolina State University’s College of Textiles henceforth will be known as the Wilson College of Textiles.  A world leader in textile research, the Wilson College of Textiles is the only standalone textile college in the United States.

“Thank you so very much to the Wilson family.  This gift is significant for the U.S. textile industry,” said National Council of Textile Organizations (NCTO) Chairman Marty Moran, CEO of Buhler Quality Yarns Corporation and a holder of a degree in textile management from North Carolina State University.

“As a fellow alumnus I’m proud and grateful to the Wilson family for giving back so selflessly to help others.  As the CEO of a textile company and as chairman of the largest Washington, DC-based trade association representing U.S. textiles, I’m excited because this gift will help mold the next generation of leaders and innovators,” Moran added as he noted more than fifty companies participated in the Wilson College of Textiles career fair on September 26.

“The Wilson family’s donation will benefit not just North Carolinians, but the entire U.S. textile supply chain,” stressed Moran as he explained NCTO and its member companies often work closely with Wilson College of Textiles faculty and students on everything from solving technical problems to innovating and manufacturing the fibers, yarns and fabrics of tomorrow.

NCTO President and CEO Auggie Tantillo said, “On behalf of NCTO’s entire membership, I want to express appreciation to the Wilson family for their very generous gift. Further, we are grateful to the Wilson College of Textiles for their continued dedication and invaluable contribution to the 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 550,500 in 2017. 

·       The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017. 

·       U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017. 

·       Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

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NCTO Welcomes United States-Mexico-Canada Agreement Announcement

WASHINGTON, DC – The United States, Mexico and Canada have concluded negotiations on a trade agreement to replace NAFTA.  The text of the deal, now referred to as the United States-Mexico-Canada Agreement, was released by the Office of the U.S. Trade Representative last night. 

“The U.S. textile industry is pleased the United States, Mexico and Canada have reached an agreement because Canada and Mexico are its largest trading partners,” said National Council of Textile Organizations (NCTO) President & CEO Auggie Tantillo as he noted that products from the textile and apparel supply chain accounted for nearly $12 billion in U.S. exports to Canada and Mexico in 2017. 

“Unlike the original NAFTA, the new agreement includes a separate textile and apparel chapter.  This outcome is a tangible recognition by all three parties of the importance of textile manufacturing to the regional economy,” Tantillo added as he explained that NCTO would not be making any further comment with respect to the deal until the substance of the agreement could be carefully analyzed by NCTO.

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 550,500 in 2017. 

·       The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017. 

·       U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017. 

·       Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

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President Trump Announces Intention to Appoint NCTO Vice Chairman Don Bockoven to the Advisory Committee for Trade Policy and...

WASHINGTON, DC – On September 25, President Trump announced his intention to appoint 2018-19 National Council of Textile Organizations (NCTO) Vice Chairman Don Bockoven to the Advisory Committee for Trade Policy and Negotiations (ACTPN) for a four-year term.  Bockoven is the President & CEO of Leigh Fibers and ICE Recycling, companies based in Wellford and Lake City, South Carolina respectively. 

“NCTO is very appreciative of this announcement. Don Bockoven is highly respected leader in the U.S. textile sector,” said NCTO President & CEO Auggie Tantillo as he thanked President Trump for his appointment of Bockoven to the ACTPN on behalf of the U.S. textile industry.

“Because the textile supply chain from fiber production to finished apparel and sewn products is very trade-sensitive, the U.S. textile industry is grateful for the opportunity to have a voice in formulating America’s trade policy,” Tantillo added, noting that nearly 40 percent of duties collected by the U.S. government are on textile-related goods.

The ACTPN is appointed by the President of the United States and is the principal trade advisory committee which provides overall policy advice on trade matters to the Office of the U.S. Trade Representative (USTR). Established by Congress under the Trade Act of 1974, the committee provides information and advice with respect to U.S. negotiating objectives and bargaining positions before entering into trade agreements, on the operation of any trade agreement once entered into, and on other matters arising in connection with U.S. trade policy. The ACTPN considers trade policy issues in the context of the overall national interest.

Leigh Fibers maintains over a million square feet of space dedicated to fiber reprocessing, research and development, quality control, warehousing and administration and is capable of handling over 350 million pounds of recycled fiber annually.

ICE Recycling custom designs plans for businesses to divert their waste products away from landfills, specializing in carbon footprint reduction, bailing, grinding and packaging of recyclable materials for repurposing in future manufacturing projects.

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 550,500 in 2017. 

·       The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017. 

·       U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017. 

·       Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

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www.ncto.org

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NCTO Welcomes the Official Launch of the Rhode Island Textile Innovation Network

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) congratulates the state of Rhode Island and its textile and apparel industry for the official launch of the Rhode Island Textile Innovation Network (RITIN).  The Slater Mill Museum in Pawtucket was the site of the event.

At the launch, RITIN unveiled its new website and held an expo featuring local manufacturers.  The activities dovetailed with NCTO’s We Make Amazing campaign promoting the U.S. textile industry, namely that Rhode Island’s textile industry is involved in research, development, design and manufacturing of an incredible array of end products and providing career opportunities with on-the-job training and advancement.

“Rhode Island companies make some of the world’s most amazing textiles and are an important cog in the U.S. textile and apparel supply chain, especially with respect to innovating and manufacturing textiles used by America’s military,” said NCTO President & CEO Auggie Tantillo.

Welcoming the official launch of RITIN, Tantillo added, “Thanks to e-commerce and other emerging technologies, the global textile and apparel sector is experiencing an era of rapid change.  Rhode Island is to be commended for being proactive in helping to ensure that its industry remains at the forefront in leveraging those changes to America’s benefit,” Tantillo added.

RITIN fosters collaboration among textile industry leaders, designers, academia and government with a mission to make Rhode Island a leader in advanced textile manufacturing and to develop solutions to recruit and train the sector’s future workforce.

Created in late 2016 by U.S. Senator Sheldon Whitehouse and the University of Rhode Island Business Engagement Center, RITIN operates with planning grants received in late 2017 from Real Jobs RI and the Rhode Island Commerce Corporation.   Polaris MEP, an affiliate of the National Institute of Standards and Technology’s Manufacturing Extension Partnership (NIST MEP) provides RITIN’s program management.

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 550,500 in 2017.
  • The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017.
  • U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017.
  • Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

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CONTACT:  Lloyd Wood
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NCTO Applauds Continued IPR Enforcement Efforts; Renews Request for Added Tariffs on Chinese Textile and Apparel End Items

WASHINGTON, DC – The National Council of Textile Organization’s (NCTO) applauds the Trump administration’s September 17 Section 301 tariff announcement as necessary to resolve longstanding trade inequities with China.  NCTO, however, strongly believes that the administration’s continued focus on added tariffs on upstream textile inputs while thus far refusing to impose tariffs on finished Chinese textile home furnishing and apparel is flawed.

“The Trump administration is right to confront China’s unfair trade practices.  Section 301 tariffs show the world that countries which serially abuse U.S. intellectual property rights (IPR) will be held accountable,” said NCTO President & CEO Auggie Tantillo. 

“NCTO also thanks the Trump administration for removing various items from the latest retaliation list, including rayon fiber and certain dyes and chemicals.  The U.S. textile industry requested the exclusion of these products because they are not available domestically and China is the only significant source of supply,” Tantillo continued.

“Had U.S. textile manufacturers been forced to pay higher duties on the excluded items, it would raise costs for manufacturers making goods that must compete with like Chinese products,” Tantillo added.

“Despite yesterday’s announcement, the U.S. textile industry remains of the belief that the administration’s strategy to impose Section 301 tariffs on inputs is not the most effective approach to penalize China for its rampant abuses of intellectual property rights in our sector,” Tantillo said. 

“Added tariffs on finished Chinese textile home furnishings and apparel is the most effective sanction the United States could impose on China because like products from the NAFTA and CAFTA regions using U.S.-made textile inputs immediately become more competitive, thereby incentivizing the reshoring textile manufacturing jobs,” Tantillo explained as he referred to NCTO’s public comments filed on May 11 requesting Section 301 tariffs on Chinese textile and apparel end 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 550,500 in 2017. 

·       The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017. 

·       U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017. 

·       Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

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CONTACT:  Lloyd Wood
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www.ncto.org

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NCTO Files Public Comments on Proposed Section 301 Tariffs

WASHINGTON, DC — The National Council of Textile Organizations (NCTO) filed public comments on the Trump administration’s proposed Section 301 tariffs on $200 billion in imports from China on September 6.  The submission is below.

 

The Honorable Robert E. Lighthizer
United States Trade Representative
600 17th Street, NW
Washington, DC 20508

Via Online Submission at www.regulations.gov / Docket No. USTR-2018-0026 – Section 301

Re: Request for Comments Concerning Proposed Modification of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (83 FR 33608)

 

Dear Ambassador Lighthizer:

The National Council of Textile Organizations (NCTO) appreciates the opportunity to provide public comments regarding the above-referenced Federal Register notice found at 83 FR 33608, dated July 17, 2018 (Docket USTR-2018-0026).  The following information is provided in addition to NCTO’s August 20 testimony as part of Panel 6 at the Section 301 Committee’s public hearing, which is attached for reference.

To summarize, while NCTO remains highly supportive of the overarching case against China’s intellectual property abuses, we continue to encourage USTR and the Section 301 Committee to prioritize the following products in our sector:

•          finished apparel that tracks with product being sourced from U.S. Free Trade Agreement (FTA) partners,

•          textile-based home furnishings and other end items, and

•          advanced technical textile products. 

The subject $200 billion list largely incorporates intermediate textile manufacturing inputs that undergo further processing as opposed to finished products where there would be a benefit throughout the U.S. textile and apparel supply chain of retaliatory tariffs against China.  In certain instances, there is a clear domestic supply of the inputs on the subject 301 list, but, in other cases, such as with respect to rayon and acrylic staple fibers, U.S. manufacturers utilizing these inputs are dependent on imports.  The 301 list also incorporates many dyes, chemicals and finishes used in the textile manufacturing process and additional types textile machinery that would raise production costs and undermine U.S. competitiveness. 

Along with these comments, NCTO has submitted detailed supplementary information to USTR and strongly encouraged our member companies to be active participants in the public comment process in commenting directly as to the impact on their businesses. 

Thank you for the opportunity to provide continued input in the Section 301 process.

Sincerely,

 

Augustine Tantillo
President & CEO
NCTO

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NCTO Renews Call for Tariffs on Textile and Apparel End Items at USTR China 301 Hearing

WASHINGTON, DC – National Council of Textile Organizations (NCTO) Senior Vice President Sara Beatty is testifying this afternoon on Panel 6 at the Office of the U.S. Trade Representative’s hearing on the Trump administration’s proposed Section 301 tariffs on $200 billion in imports from China.

Beatty’s statement as prepared for delivery is included at the bottom of this release and it reiterates NCTO’s 24-page public comments and testimony from earlier this year that the following products be prioritized on the China 301 retaliation list:

  • finished apparel that tracks with product being sourced from U.S. Free Trade Agreement (FTA) partners,
  • textile-based home furnishings and other end items, and
  • advanced technical textile 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 550,500 in 2017.
  • The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017.
  • U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017.
  • Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

 

Sara Beatty, Senior Vice President, National Council of Textile Organizations
China 301 IPR Hearing – Panel 6
August 20, 2018
Remarks as Prepared for Delivery

My name is Sara Beatty, and I am the Senior Vice President of the National Council of Textile Organizations.  Thank you for the opportunity to appear today.

NCTO represents the full spectrum of the U.S. textile sector, from fiber through finished sewn products.  As we have consistently voiced throughout this process, NCTO steadfastly supports the President’s pursuit of a Section 301 case to address China’s rampant intellectual property (IP) abuses.

Importance of Covering End Items

In NCTO’s previous testimony and public comments, we documented the severely damaging effects of China’s IP theft and related abuses on U.S. textile and apparel manufacturers and our views on how best to address the problem in our sector.  To summarize, it remains our recommendation that priority should be placed on covering the following products on the retaliation list:

  • finished apparel that tracks with product being sourced from U.S. Free Trade Agreement (FTA) partners,
  • textile-based home furnishings and other end items, and
  • advanced technical textile products.

While products in Chapters 50-60 covering textile fibers, yarns and fabrics are on the subject $200 billion list, finished apparel and other sewn products in Chapters 61-63 are again absent.  The U.S. textile industry is disappointed by this repeated omission and asks that USTR consider the following:

First, 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 represent only 6.5 percent.  Given that apparel and other sewn products made in China almost always contain Chinese inputs, a significantly greater value of fibers, yarns and fabrics made in China enter the U.S. market in the form of Chinese-made downstream finished products than at the input stage.

Noting textiles have been identified as a key industry under the Made in China 2025 plan and Chinese-made textiles gain significant competitive advantages in the U.S. market through intellectual property theft, NCTO agrees that textiles should be part of the administration’s 301 strategy.  It is also why, however, NCTO continues to stress that the most logical and effective way to target China’s predatory trade practices in our sector is to address their primary means of disrupting our market, exports of end items to the United States.

Most of China’s 10 million direct textile and apparel jobs are concentrated at the final steps of the supply chain, the highly labor-intensive cutting and sewing operations.  As such, imposing tariffs on end items would maximize U.S. leverage in bringing China to make meaningful reforms.

Further, the importance of targeting finished products on the retaliation list is not only derived from the fact that China predominantly ships end items versus intermediate inputs, but also because end item imports most directly and negatively impact U.S. textile and apparel production, investment and jobs.  China’s apparel and other textile-based end items compete head to head with like Western Hemisphere products that typically are made from U.S. fibers, yarns and fabrics.

By the time a pair of Chinese blue jeans arrives in the U.S. market, they have benefited from China’s illegal trade practices at every stage in the production chain, allowing them to displace other products in the market.  The pre-duty unit cost of a pair of jeans is $7.50 imported from China compared to $8.29 from our Western Hemisphere free trade partners.  A 25% additional tariff adds $1.88 to China’s price, providing a considerable incentive to shift sourcing from China to duty-free sources in the Western Hemisphere.

NCTO is convinced that the Trump administration’s Section 301 tariffs would be far more effective if Chinese apparel and related end products were included on the 301 list because that would benefit the entire U.S. textile and apparel supply chain and address the root issue.

Textile and Related Products on the $200 Billion List

With the inclusion of virtually all fiber, yarn and fabric tariff lines on the $200 billion list, NCTO is finalizing feedback on a line-by-line basis that identifies products where the U.S. textile industry would be negatively impacted by additional tariffs of 10%, or up to 25%, on product from China.  A number of our member companies are also filing comments speaking to their unique circumstances.  Given that these are largely intermediate-stage manufacturing inputs, additional duties on products imported from China for further processing can be counterproductive in instances where there is no U.S. production and China is one of a limited number of import sources.

As this type of detailed information cannot be adequately conveyed in testimony form, NCTO will be submitting supplementary public comments.  However, acrylic and rayon staple fibers serve as good examples of products that NCTO recommends be removed from the 301 list to avoid undue harm to U.S. manufacturers.  These fibers are not produced in the United States and their unavailability is reflected in the rules of origin of our more recent free trade agreements as well as in the Miscellaneous Tariff Bill (MTB) pending in Congress.

Raising the production costs for these inputs will only undercut U.S. competitiveness for manufacturers that utilize them without bolstering U.S. producers, of which none exist.  Further, yarn and fabric producers in China and other countries will not face these added costs, thus simultaneously placing U.S. producers at a significant disadvantage while providing a loophole for Chinese fibers to enter the U.S. market in the form of a downstream product.

Beyond the traditional textile chapters, NCTO recommends removal of certain chemicals, dyes and finishes that are integral to the textile manufacturing process and create value add in U.S. products.  Our members report that many of these products are largely unavailable from U.S. sources, particularly in the quantities consumed, and thus the increased raw material costs will damage downstream domestic manufacturing competitiveness.  Again, a list of specific tariff lines will be provided.

Last, we are concerned that while textile machinery was largely removed from the initial $50 billion list, additional lines have been proposed on this list.  NCTO continues to strongly recommend the removal of all machinery-related items as U.S. textile companies are almost entirely dependent on imports to equip their factories.

Thank you again for the opportunity to appear today.  NCTO looks forward to working with the Trump administration on ways to maximize the benefit of Section 301 tariffs to American industry and workers, and I would be pleased to answer any questions.

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NCTO Applauds Trump Administration Efforts to Address China’s Unfair Trade Practices; Calls for Tariffs on Chinese Textile and Apparel...

WASHINGTON, DC – The National Council of Textile Organization’s (NCTO) applauds the Trump administration for its continued effort to resolve longstanding trade inequities with China, noting the July 10 announcement proposing $200 billion in Chinese goods for an added 10 percent tariff.  The latest U.S. action follows China’s unjustified retaliation against U.S. imports after the United States placed Section 301 tariffs on Chinese goods in response to that country’s unfair trade practices related to the forced transfer of American technology and intellectual property.

NCTO also called on the Trump administration to include finished textile and apparel products on any future lists of imports from China to be made subject to Section 301 tariffs.

“The Trump administration is right to confront China’s unfair trade practices.  Section 301 tariffs show the world that countries who cheat the United States on trade will be held accountable,” said NCTO President & CEO Auggie Tantillo. 

That said, NCTO will be thoroughly vetting the new retaliation list.  “With the inclusion of virtually all fiber, yarn and fabric tariff lines, NCTO’s response will be on a line-by-line basis, with support or opposition to individual lines dependent on the how the competitiveness of the U.S. textile industry is impacted,” Tantillo continued.

“NCTO is convinced that the Trump administration’s Section 301 tariffs would be far more effective if Chinese apparel and sewn non-apparel end products were included in the 301 list because that would benefit the entire U.S. textile and apparel supply chain,” Tantillo said as he referred to NCTO’s China 301 public comments filed on May 11 and noted that no apparel and sewn non-apparel end products were included on the U.S. government’s latest proposed tariff list. 

“If properly targeted, Section 301 tariffs would not only address the underlying illegal activity on the part of China, but also help reshore American jobs and boost U.S. exports to the NAFTA and CAFTA regions.  That’s why NCTO will continue to engage the Trump administration on ways to maximize the benefit of Section 301 tariffs to American industry and workers,” Tantillo added.

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 550,500 in 2017. 

·       The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017. 

·       U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017. 

·       Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

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NCTO Applauds Trump Administration 301 Tariffs; Calls to Include Textile and Apparel End Products in Future Actions

WASHINGTON, DC – The National Council of Textile Organization’s (NCTO) praised the Trump administration’s announcement imposing Section 301 tariffs on China in response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property. NCTO also called on the Trump administration to include finished textile and apparel products on any future lists of imports from China to be made subject to Section 301 tariffs.

“The Trump administration is to be commended for taking decisive action against China’s unfair trade practices.  Section 301 tariffs deter trade cheats,” said NCTO President & CEO Auggie Tantillo. 

“As per our recommendation, NCTO is pleased that almost all textile machinery products were removed from the final list of tariff lines subject to immediate 301 duties because tariffs on textile machinery hinder the competitiveness of U.S. textile manufacturers,” Tantillo continued.

“While appreciative of today’s actions, NCTO is convinced that the Trump administration’s efforts to deter China’s unfair trade practices would be even more effective if textile and apparel end products from China were made subject to Section 301 tariffs,” Tantillo said as he referred to NCTO’s China 301 public comments filed on May 11. 

Noting that the Trump administration proposed an additional list of Chinese products for Section 301 tariffs as part of today’s announcement, Tantillo concluded, “NCTO is pleased that some textile products are on the second list.  It would have a greater deterring effect, however, if more textile and apparel end products were included.  As such, NCTO looks forward to working closely with the Trump administration to refine it.”

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 550,500 in 2017. 

·       The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017. 

·       U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017. 

·       Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

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CONTACT:  Lloyd Wood
(202) 822-8028
www.ncto.org

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