NCTO Comments on the Administration’s Announced Phase One Deal on 301 Tariffs

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. 1st will be reduced from 15 percent to 7.5 percent, and proposed duties on finished products set to be put in place on Dec. 15th 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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NCTO Applauds Deal Between Democrats and Administration on USMCA; Urges Swift Congressional Passage

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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NCTO Urges Customs & Border Protection to Examine the Scope of Trade Under de Minimis Waivers and its Impact...

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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NCTO Member Parkdale Mills Hosts Representative Doug Collins (GA-09) at Expanded Textile Plant, One of the Largest Recent Investments...

October 3, 2019

WASHINGTON, DC – National Council of Textile Organizations (NCTO) member Parkdale Mills met with Representative Doug Collins (GA-09) today at the company’s recently expanded and upgraded plant in Rabun Gap, Ga., underscoring the continued growth in investment by the U.S. textile industry.

“Northeast Georgia has long been home to a robust textile industry, and it is heartening to see companies like Parkdale continuing the proud legacy in our region. Parkdale’s commitment to growth and innovation is felt not only by the hardworking Georgians they employ, but by the manufacturing industry as a whole,” said Rep. Collins (GA-09). “I’m proud of the major investment they’ve made here in Rabun County, and I’m appreciative of the opportunity to visit their facility today.”

“This plant represents one of the largest textile investments in North America over the last five years,” said Daniel Nation, Director of Government Relations at Parkdale, a 103-year-old U.S. textile company based in Gastonia, North Carolina.

Parkdale operates 28 yarn spinning and consumer product producing facilities, employing 5,200 people across eight states.

“U.S. manufacturing is the bedrock of our economy and textile producers like Parkdale have made a strong commitment to investment and jobs as evidenced by our recent completion of a $101-million upgrade to our plant in Rabun Gap,” Nation said. “It is now one of the most modern, automated open-end spinning factories in the world.”

“We thank Congressman Collins for his continued support of the textile industry,” Nation added.

Capital expenditures in plants such as Parkdale’s facility in Rabun Gap have helped drive the overall investment of $20 billion in the industry over the past decade, while contributing to the 50,645 textile jobs in the state of Georgia, which ranks first in textile employment nationally.

From 2009 to 2017, capital investment in U.S. yarn, fabric, apparel and sewn products manufacturing equaled $2.04 billion, an increase of $678 million. U.S. International Trade Commission officials said in a 2018 report on the industry that there were 59 publicly announced new or planned investments in the U.S. textile sector from January 2014 through December 2017.

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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Textile Executives Stress Importance of USMCA at Roundtable with Congressman Tom Rice

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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NCTO Welcomes Administration’s Inclusion of Finished Apparel & Textile Products on China Tariff List

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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NCTO Board Member and Auburn Manufacturing Inc. President and CEO Kathie Leonard Named to Ex-Im Bank Advisory Committee

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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NCTO Announces Winner of the 2019 Paul T. O’Day Memorial Scholarship

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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NCTO Applauds Senate Passage of the National Defense Authorization Act of Fiscal Year 2020

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) commends the Senate for passing the National Defense Authorization Act of Fiscal Year 2020, which strengthens the Berry Amendment and safeguards our national security, by setting compliance requirements to all Department of Defense acquisitions at or above $150,000.

The Senate bill rolls back the threshold for Berry compliance requirements to 2017 levels and adjusts future increases for inflation, which the U.S. textile industry supports.

The Fiscal Year 2018 NDAA bill raised the Simplified Acquisition Threshold to $250,000. The higher threshold put more than $50 million worth of Berry contracts annually at risk of being outsourced to China and other foreign countries.

“We are really pleased the Senate passed the NDAA, which strengthens the Berry Amendment, a provision that is critical to the U.S. textile industry,” said NCTO President and CEO Kim Glas.

“Berry provides the U.S. military with high-quality textile and apparel products that are produced with 100% U.S. materials and labor. It also helps keep the industrial base strong and provides the best R&D, materials, and equipment for our warfighters,” Glas said. “We also urge the House to follow the Senate’s lead and take similar action to strengthen our national industrial base.”

“Without the Berry Amendment in place, defense-related activities are at risk if supply chains are filled with imports of undocumented origin,” said Kathie Leonard, President and CEO of Auburn Manufacturing Inc., a small manufacturer of fire-resistant fabrics based in Mechanic Falls, Maine.

“Our ability to continue supplying 100% domestically produced products to the military is contingent upon a reasonable Berry threshold.  The minimum was raised from $50K to $150K several years ago.  Last year it jumped to $250K, leaving us with only 15% of the defense market we serve,” Leonard said.

Ashley Bullock, Government Contract Sales Manager for Raeford Uniforms, a division of Burlington Industries, said: “Passage of the NDAA along with the continued support of the Berry Amendment are critical for Burlington and our ongoing support to the U.S. military and our men and women in uniform.  As a proud part of the military’s clothing and textile supply chain, Burlington Industries, an Elevate Textiles Company, relies on the Berry Amendment to maintain our current operations in North and South Carolina and our ability to make continual investment to ensure the U.S. warfighter has the most innovative, highest-quality, and technologically advanced clothing and equipment possible.  Correcting the Berry Amendment’s threshold level is a major and positive step in protecting this important law from being watered down. “

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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NCTO President & CEO Kim Glas Testifies at U.S. Trade Representative’s Hearing on Proposed 301 Tariff List

WASHINGTON, DC – National Council of Textile Organizations (NCTO) President and CEO Kim Glas is testifying at a public hearing today in support of 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.

Glas is joining several other NCTO member companies today to testify at a U.S. Trade Representative hearing as part of the administration’s consideration of the Tranche 4 of retaliatory tariffs on U.S. imports from China.

“If the United States truly wants to resolve China’s rampant IPR abuse, pillar sectors of the Chinese economy will need to be included on the 301-retaliation list,” Glas said in prepared remarks for today’s USTR hearing. “Leaving sectors that are highly sensitive within China’s economy off the list has actually weakened U.S. leverage throughout the negotiating process, delaying a long overdue remedy to this systemic trade problem.”

“To effectively respond to China’s predatory practices in our sector, we believe the administration needs to address the exports from China that are disrupting our market and distorting trade: exports of end items to the United States,” Glas said.

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, according to government data.

NCTO is “pleased the proposed Tranche 4 includes finished imported items from China, which have the most significant impact on U.S. employment, production and investment,” Glas said.

“We believe this move will lead to the 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,” she added.

However, Glas said the industry has serious concerns that certain inputs “already vetted by the administration and removed from previous retaliatory tariff lists are back on this list for proposed duties. These inputs include but are not limited to: machinery, dyes and chemicals and textile components not available domestically, like rayon staple fiber.”

“Adding tariffs on imports of manufacturing inputs that are not made in the U.S. in effect raises the cost for American companies and makes them less competitive with China,” Glas said, calling for the earlier exclusion reviews to be upheld. In addition, Glas also urged the U.S. government to institute a fair, transparent and expeditious exclusion system for all retaliation tranches.

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

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