NCTO Applauds USTR for Confronting China on Illegal Export Subsidies

February 11, 2015

NCTO Applauds USTR for Confronting China on Illegal Export Subsidies

Washington, D.C. – The National Council of Textile Organizations (NCTO) applauds U.S. Trade Representative Ambassador Michael Froman’s decision to pursue dispute settlement consultations with the Government of China at the World Trade Organization (WTO) concerning China’s “Demonstration Bases-Common Service Platform” export subsidy program. (Ambassador Froman’s press release linked here)

Through this program, China provides WTO prohibited export subsidies to manufacturers which meet export performance criteria. These illegal subsidies have bolstered China’s meteoritic export surge of textiles and apparel into the U.S. market. The chart below demonstrates the phenomenal growth of Chinese textile and apparel exports to the U.S. market since 2001.

China’s massive export growth over this period resulted in billions of dollars in lost sales and tens of thousands of lost jobs in the U.S. and the Western Hemisphere. “It has been NCTO’s long standing position that China’s rise in the global textile and apparel market has been substantially aided by illegal and unfair trading practices. These illegal practices distort the global market place and put the entire U.S. manufacturing base at a considerable disadvantage,” stated NCTO president Augustine Tantillo. “We applaud the Obama Administration for today’s decision to hold our international trading competitors to their WTO obligations,” he continued.

When afforded a level playing field, the U.S. textile and apparel industry can compete with any country in the world. In 2013*, the U.S. textile and apparel industry was the third largest exporter of textile and apparel products in the world, exporting nearly $24 billion in goods. The industry is also a significant contributor to the overall U.S. economy, producing over $70 billion in annual output. Most importantly, the industry remains a major employer in the United States, providing jobs for nearly 500,000 workers from fiber production to finished product in 2013*. Additionally, for every one direct textile or apparel job, there are three additional jobs supported within the U.S. economy.  

NCTO encourages the U.S. to strenuously pursue this matter at the WTO in order to begin the eradication of these illegal trading practices. Doing so will lead to more fair and open competition in the global market.

*This press release contains 2013 data. Full year 2014 data has not yet been released by the USITC.

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VIETNAM TEXTILE AND APPAREL EXPORTS CONTINUE TO SURGE TRANS-PACIFIC PARTNERSHIP TERMS MORE CRITICAL THAN EVER

VIETNAM TEXTILE AND APPAREL EXPORTS CONTINUE TO SURGE

TRANS-PACIFIC PARTNERSHIP TERMS MORE CRITICAL THAN EVER

FOR IMMEDIATE RELEASE

JULY 10, 2014

WASHINGTON, D.C. — According to new U.S. government data, Vietnam’s textile and apparel exports to the U.S. have continued to surge in 2014. Vietnam’s apparel sector is also positioned to gain additional advantages under a proposed new free trade agreement that will bolster their ability to penetrate the U.S. market.

In a year-over-year comparison, the top apparel suppliers to the U.S. showed a decrease in exports for the first five months of 2014, with the exception of Vietnam, according to recently released Commerce Department data.  Vietnam’s meteoric rise now ranks it as the second largest supplier of textiles and apparel to the U.S. market. Since 2007, Vietnam’s total textile and apparel exports to the U.S. have doubled. Vietnam is currently responsible for 11.5% of all U.S. apparel imports.

“Vietnam has become a dominant player in the U.S. textile and apparel market, demonstrating tremendous export growth without any free trade agreement preferences,” said Auggie Tantillo, President and CEO of NCTO. “Vietnam’s export surge necessitates the need for a well-crafted and balanced Trans-Pacific Partnership agreement. The terms of this agreement are absolutely critical to the stability of the U.S. textile sector and the entire textile and apparel production chain throughout the Western Hemisphere.”

“It is critical that the U.S. mitigates this risk by adopting fair and reasonable textile rules in the Trans-Pacific Partnership,” Tantillo continued. “Any final TPP must contain provisions that have been the foundation of U.S. trade agreements over the past 25 years, specifically fair rules of origin, common sense market access rules, and strong customs enforcement provisions.”

U.S. textile and apparel imports from Vietnam have grown from $49 million in 2001 to $8.8 billion in 2013.  The country’s annual export growth has routinely topped 15%. Vietnam stands to gain even greater access to the U.S. market upon conclusion of the TPP agreement and any preferential duty treatment the agreement affords.

According to U.S. government data for 2014, the U.S. imported $3.8 billion worth of textiles and apparel from Vietnam from January-May, a 14% increase over shipments during the same five month period in 2013.  Year-to-date, Vietnamese apparel exports to the U.S. have seen large increases in categories important to U.S. and Western Hemisphere textile and apparel producers, including:

  • Women’s/Girls’ Knit Cotton Blouses up 12.4% to $465 million
  • Men’s/Boys’ Woven Cotton Shirts up 18.5% to $92 million
  • Men’s/Boys’ Cotton Trousers up 16.5% to $177 million
  • Women’s/Girls’ Cotton Trousers up 7.9% to $359 million
  • Cotton Underwear up 10.0% to $157 million
  • Man Made Fiber Women’s/Girls’ Coats up 24.3% to $106 million
  • Man Made Fiber Dresses up 22.3% to $243 million
  • Man Made Fiber Men’s/Boys’ Knit Shirts up 20.5% to $164 million
  • Man Made Fiber Men’s/Boys’ Trousers up 15% to $170 million
  • Man Made Fiber Women’s/Girls’ Trousers up 35.9% to $183 million

Contact: Eliza Levy – elevy@ncto.org

 

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NCTO, CANAINTEX, CECATEC-RD RALLY FOR STRONG RULES IN THE TPP ON CAPITOL HILL

FOR IMMEDIATE RELEASE

June 12, 2014

NCTO, CANAINTEX, CECATEC-RD

RALLY FOR STRONG RULES IN THE TPP ON CAPITOL HILL

WASHINGTON, D.C. — On June 10, U.S. textile manufacturers joined with their counterparts throughout the Western Hemisphere to communicate to congressional leaders the importance of adopting fair and reasonable textile rules in the Trans-Pacific Partnership (TPP).  The event brought together the trade associations for U.S., Mexican, and Central American textile and apparel producers, CEOs of regional manufacturers, and trade representatives of CAFTA-DR governments. Meetings highlighted the strong growth in trade and investment in textile manufacturing as a result of the NAFTA and CAFTA-DR trade agreements.

The group met with House and Senate leadership offices, including aides to Senate Majority Leader Harry Reid, Speaker John Boehner, and House Majority Leader Eric Cantor, and staff for the House Ways and Means and Senate Finance Committees, and leaders of the House Textile Caucus. Discussions focused on the need for a strong “yarn forward” rule of origin, robust customs enforcement, and reasonable tariff phase outs for sensitive products in TPP.

“Mexico is a key textile and apparel producer in the Western Hemisphere and is a critical part of the supply chain for many American textile and apparel companies,” said Nora Ambriz, Executive Director of CANAINTEX. “Ninety-six percent of Mexican apparel exports are shipped to the United States each year and Mexico is the leading export destination for U.S. textiles and apparel. NAFTA has created this dynamic and integral relationship between the U.S. and Mexico’s textile and apparel sectors and it is critically important that TPP does not damage the Western Hemisphere supply chain in this sector.”

“A final TPP must contain provisions that have been the foundation of U.S. trade agreements over the past 25 years: fair rules of origin, common sense market access rules, and strong customs enforcement provisions,” said Jay Self, Chairman of NCTO and President and CEO of Greenwood Mills. “The NAFTA and CAFTA-DR free trade agreements have created a sustainable and competitive manufacturing platform for U.S. textile and apparel companies which allows us to compete in the global market. It is imperative that U.S. trade policy continues to foster the economic growth seen under these agreements by building on the successful rules they contain.”

“The U.S. and the CAFTA-DR region, including the Dominican Republic, have created a prosperous and sustainable integrated manufacturing platform,” said Karin de Leon, Executive Director of CECATEC-RD. “This partnership provides hundreds of thousands of manufacturing jobs throughout the CAFTA-DR region, and is responsible for billions in two-way trade with the United States.”

About the organizations:

CANAINTEX is the leading organization representing the textile value chain in México.

CECATEC-RD  is a nonprofit and regional organization which integrates the associations and chambers of the apparel and textile sector in Central America and Dominican Republic, representing and developing strategies for promotion, development and protection of the industry in the region.

National Council of Textile Organizations (NCTO), headquartered in Washington, DC, with an office in Gastonia, NC, is the national trade association representing the entire spectrum of the textile sector. For more information about the U.S. textile industry, view NCTO’s website at www.ncto.org.

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PDF: PRESS RELEASE NCTO, CANAINTEX, CECATEC-RD RALLY FOR STRONG RULES IN THE TPP ON CAPITOL HILL

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House Assistant Democratic Leader James Clyburn Visits South Carolina Textile Manufacturer DAK Americas

FOR IMMEDIATE RELEASE

MAY 27, 2014

House Assistant Democratic Leader James Clyburn Visits South Carolina Textile Manufacturer DAK Americas

DAK Americas - Congressman Jim Clyburn 2

DAK Americas, Monks Corner, SC- 5/27/14

 L-R: Mark Ruday- Sr. VP Fibers, DAK Americas; Congressman Jim Clyburn; Antonio Garza- Cooper River Site Manager, DAK Americas

GOOSE CREEK, SC — Today, Congressman Jim Clyburn toured DAK America’s textile manufacturing facility in Goose Creek, S.C., to learn more about the company’s fiber production operations which are used in numerous downstream apparel and technical textile applications. The visit is part of the National Council of Textile Organizations’ (NCTO) “Hill to the Mill” program which gives members of Congress an opportunity to see firsthand innovations and new investments in the textile manufacturing sector.  

DAK Americas is a leading employer in South Carolina, where it employs nearly 1,000 people in highly skilled jobs including full service and contract positions.  DAK Americas is a fast growing company with core businesses comprised of Polyester Staple Fibers (PSF), PET Container Resins (PET) and Terephthalic Acid (TPA). The company has a growing presence in its Specialty Polymers and GreenPET (recycled and renewable raw materials) businesses.

“We were honored to host Congressman Clyburn’s visit to our plant, and to show him the investments we are making in new products and technology in an effort to support U.S. textile jobs,” said Jorge Young, President and CEO of DAK Americas. “We are proud of the significant contributions our facilities and workers make to the state of South Carolina and are very pleased that Congressman Clyburn would take time to better familiarize himself with our company.”

The U.S. textile manufacturing sector in general has continued to see investment and growth over the past year. The U.S. has become an increasingly attractive option for textile investment due to competitive energy, transportation, and fiber costs. Beyond these basic economic factors, a key driver for the new investment surge has been the success of “yarn forward” origin requirements included in every major U.S. free trade agreement.  

DAK Americas - Congressman Jim Clyburn 4

DAK Americas, Monks Corner, SC- 5/27/14

L-R: Mark Ruday- Sr. VP Fibers, DAK Americas; Congressman Jim Clyburn; Antonio Garza- Cooper River Site Manager, DAK Americas

DAK Americas - Congressman Jim Clyburn 3

DAK Americas, Monks Corner, SC- 5/27/14

L-R: Mark Ruday- Sr. VP Fibers, DAK Americas; Congressman Jim Clyburn; Antonio Garza- Cooper River Site Manager, DAK Americas

DAK Americas - Congressman Jim Clyburn 1

L-R: Mark Ruday- Sr. VP Fibers, DAK Americas; Todd Ethington-Government Affairs, NCTO;

Antonio Garza- Cooper River Site Mgr., DAK Americas; Congressman Jim Clyburn

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NCTO Presents at TTIP Negotiating Round in Washington, DC, Meets with EU Counterpart EURATEX

FOR IMMEDIATE RELEASE

May, 21, 2014

NCTO Presents at TTIP Negotiating Round in Washington, DC, Meets with EU Counterpart EURATEX

WASHINGTON, D.C. – Today, the National Council of Textile Organizations (NCTO) made a formal stakeholder presentation at the 5th negotiating round of the Transatlantic Trade and Investment Partnership (TTIP) in Arlington, Virginia. The presentation highlighted key U.S. textile industry positions including the need for a yarn forward rule of origin, and the preservation of U.S. government procurement regulations such as the Berry Amendment.

Earlier in the week, NCTO staff met with EU counterpart, the European Apparel and Textile Confederation (EURATEX). EURATEX is the voice of the European textile and apparel sector, employing 1.6 million workers. The discussions reviewed the two groups’ overall goals in regard to TTIP along with whether there is the potential to reach a joint U.S./EU textile industry position on specific TTIP issues. 

“The effort to establish a comprehensive free trade agreement between the United States and the European Union marks the first time U.S. manufacturers and exporters may be able to enjoy FTA access to an overseas market that rivals our own,” said Augustine Tantillo, NCTO President and CEO.  “We look forward to a productive and collaborative relationship with EURATEX and other European industry groups in hopes of reaching mutually beneficial positions under the TTIP.”  

TTIP is an effort to establish a free trade bloc between the United States and the 28 member nations of the European Union. The TTIP negotiations present a unique set of opportunities and challenges for the U.S. textile industry.  While the U.S. and EU textile and apparel markets may be similar in market size and cost structure, the U.S. trade deficit with the EU in those products totaled almost $3 billion in 2013. 

The National Council of Textile Organizations (NCTO), headquartered in Washington, DC with an office in Gastonia, NC, is the national trade association representing the entire spectrum of the textile sector. For more information about the U.S. textile industry, view NCTO’s website at www.ncto.org.

PDF: NCTO Presents at TTIP Negotiating Round in Washington, DC, Meets with EU Counterpart EURATEX

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