NCTO President & CEO Kim Glas Testifies on the Medical Supply Chain and Pandemic Response Gaps at Senate Homeland...

NCTO President and CEO Kim Glas is testifying today on “COVID-19 Part II: Evaluating the Medical Supply Chain and Pandemic Response Gaps, before the Senate Homeland Security and Governmental Affairs Committee at 2:30 P.M. ET.

In written testimony submitted to the committee, Glas provides an overview of: the U.S. market prior to the pandemic and the root causes of America’s dependence on offshore sources for medical PPE; the heroic response of the U.S. textile industry; the federal government’s response to the crisis; and a series of policy recommendations to incentivize the establishment of a permanent domestic PPE supply chain.

“The time is ripe for a revival of American PPE textile manufacturing. It has already begun, but we are at a pivotal point,” Glas adds. “Without the necessary  policy response and support, our recent progress will be undone just as quickly, and China’s stranglehold over global medical textile supply will be locked in for the foreseeable future with no reason to invest here. However, with the right policy framework, the domestic PPE supply chains built overnight can endure and grow, creating a level of self-sufficiency domestically that we have learned the hard way is essential to our national health and economic security.”

Glas details key policy recommendations designed to establish a permanent domestic PPE supply chain, including:

  • Create strong domestic procurement rules for federal PPE purchases and other essential products–substantially similar to the Berry Amendment and the Kissell Amendment which require 100% US content from fiber production forward
  • Implement forward-looking policies to shore up the Strategic National Stockpile and issue long-term contracts to incentivize investment in the domestic PPE manufacturing base
  • Create federal incentives for private sector hospitals and large provider networks to purchase domestically-produced PPE
  • Continue to deploy the Defense Production Act to shore up the textile industrial base from raw materials to end products for all essential products

Please view the full written testimony by NCTO President and CEO Kim Glas here.

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 530,000 in 2020.
  • The value of shipments for U.S. textiles and apparel was $64.4 billion in 2020.
  • U.S. exports of fiber, textiles and apparel were $25.4 billion in 2020.
  • Capital expenditures for textiles and apparel production totaled $2.38 billion in 2019, the last year for which data is available.

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Kristi Ellis

VP, Communications

kellis@ncto.org

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NCTO President & CEO Kim Glas Testifies on Supply Chain Resiliency at House Small Business Subcommittee Hearing

April 29, 2021

WASHINGTON, DC—National Council of Textile Organizations (NCTO) President and CEO Kim Glas is testifying today on “Supply Chain Resiliency and the Role of Small Manufacturers” before the Small Business Committee’s Subcommittee on Economic Growth, Tax, and Capital Access at 1:00 p.m. ET.   

In written testimony submitted to the committee, Glas provides an overview of the incredible resiliency of the U.S. textile industry during the COVID-19 pandemic, the impact of the ensuing economic crisis, existing options available to small manufacturers to access capital, and policy recommendations to strengthen the entire industry domestic supply chain.

“One silver lining associated with the immense challenges posed by the COVID-19 crisis is that it afforded the domestic textile industry an opportunity to demonstrate its enormous resiliency, flexibility, and overall value to the U.S. economy,” Glas says in the testimony. “Despite the fact that there was virtually no [full] U.S. production of textile-based PPE prior to the pandemic, the heroic actions of domestic textile manufacturers resulted in the ability to supply homegrown PPE at the height of the greatest healthcare emergency our country has faced in the past 100 years.”

“As we exit the current crisis, rational federal policies are once again needed to ensure a stable overall environment where small businesses can compete and thrive, and targeted initiatives are required to ensure that domestic supply chains for critical materials, such as PPE, exist in the United States,” Glas notes.

Glas details five key policy recommendations supported by 20 trade associations and labor groups, representing the entire domestic supply chain aimed at strengthening the integrated U.S. textile sector:

  • Strengthen Buy American procurement rules
  • Provide funding assistance for companies to reconstitute domestic supply chains important to U.S. national and healthcare security
  • Key contracting reforms
  • Streamline the SBA loan application process
  • Provide additional funding for workforce training

Please view the full written testimony by NCTO President and CEO Kim Glas here.

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 530,000 in 2020.
  • The value of shipments for U.S. textiles and apparel was $64.4 billion in 2020.
  • U.S. exports of fiber, textiles and apparel were $25.4 billion in 2020.
  • Capital expenditures for textiles and apparel production totaled $2.38 billion in 2019, the last year for which data is available.

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Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org  |  202.684.3091

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NCTO President & CEO Kim Glas Testifies at U.S. International Trade Commission Hearing on Challenges Related to U.S. PPE...

WASHINGTON, DC –The U.S. International Trade Commission held a public hearing on September 23-24 as part of its investigation of conditions impacting U.S. industry sectors and supply chains in the production of medical goods related to the COVID-19 pandemic.

National Council of Textile Organizations (NCTO) President & CEO Kim Glas is testifying on panel 5 today, the hearing’s second day.

“Amid the devastating challenges of responding to COVID-19, NCTO members have been at the forefront of deploying manufacturing resources to address the critical need for personal protective equipment (PPE),” Glas said in testimony prepared for delivery.  “Our members quickly mobilized, proactively retooling production lines and retraining workers to provide U.S.-made PPE to frontline medical workers.”

“Despite these heroic efforts to confront the ongoing crisis, the onshoring of a permanent PPE industry will only materialize if proper government policies are implemented to incentivize the long-term investment needed to sustain PPE production in the United States,” Glas said.

Glas’ testimony as prepared for delivery can be found here.

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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 585,240 in 2019.
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019.
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019.
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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NCTO President & CEO Kim Glas Testifies at House Ways and Means Trade Subcommittee Hearing on COVID-19 Crisis

WASHINGTON, DC – National Council of Textile Organizations (NCTO) President and CEO Kim Glas is testifying today at the House Ways and Means Trade Subcommittee hearing on “Manufacturing and Critical Supply Chains: Lessons From COVID-19.”

“While domestic textile manufacturers have undertaken heroic efforts to confront the ongoing crisis, the onshoring of a permanent PPE industry will only materialize if proper government policies and other actions are put in place to help domestic manufacturers survive the current economic crisis and to incentivize the long-term investment needed to fully bring PPE production back to the United States,” Glas said in testimony submitted to the subcommittee found here.

Glas outlined policy recommendations and concrete steps the government should take to address the long-term and short-term needs of frontline health care workers, patients and the general public.

“The time is ripe for a revival of American PPE textile manufacturing. It has already begun, but we are at a pivotal point. Without the necessary policy response and support, our recent progress will be undone just as quickly, and the China stranglehold over global medical textile supply will be locked in for the foreseeable future with no reason to invest here,” Glas said.

“The U.S. textile and apparel industry is ready, willing, and able to supply our country’s PPE needs now and for what lies ahead,” she added.

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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 585,240 in 2019.
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019.
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019.
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

202.684.3091

www.ncto.org

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NCTO Statement on Administration’s 90-Day Tariff Deferral

WASHINGTONThe National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement from NCTO President and CEO Kim Glas today, voicing concern over the administration’s executive order instituting a non-reciprocal 90-day deferral on certain tariffs. The temporary postponement of duties does not apply to products with antidumping or countervailing duties or those products subject to penalty duties under Section 232, 201 and 301.  As further details of the order emerge, we are closely reviewing the implications for the U.S. textile industry.

“At a time when domestic textile producers and its workforce have mobilized to transform their production lines to manufacture the personal protective equipment (PPE) supplies for frontline healthcare and medical workers fighting the COVID-19 pandemic, the administration’s decision to defer duties for 90 days on the vast majority of products imported into the United States is counterproductive.

This move contradicts the administration’s top stated priority of rebuilding American manufacturing and buying American and could have severe negative implications for the entire U.S. textile industry, whose companies and workforce already are facing enormous economic hardship.

We support the need to temporarily eliminate barriers to the entry of emergency medical supplies and certain PPE inputs tied directly to the COVID-19 response. But make no mistake, the key drivers behind efforts to defer tariffs have nothing to do with facilitating access to PPE products or stopping the spread of COVID-19.

Our industry is being asked to do extraordinary things.  We are heeding that call, but we need help to ensure the supply chains we are creating overnight don’t evaporate tomorrow.  We need strong procurement policies and additional funding for our industries to ramp up and retool – not further measures that incentivize offshore production. We need to maximize the U.S. domestic production chain right now to every extent possible in helping fight COVID-19 and make the products American frontline workers desperately need. 

We need to provide immediate and substantial relief to our manufacturing sector and their workforce who are suffering enormously right now. It’s critical that we have a long-term U.S. government plan to ensure that we aren’t relying on offshore producers to make medically necessary, live-saving PPE.  We shouldn’t be providing handouts to reward the very companies that helped offshore these industries so many years ago.

Tariffs are one of the few mechanisms in place to help partially address the challenges U.S. manufacturers face in competing with imports from countries with exceptionally low wages, poor working conditions, and minimal environmental and safety standards.”

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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 585,240 in 2019. 
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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NCTO Statement on Administration’s Reported Tariff Deferral


WASHINGTONThe National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement from NCTO President and CEO Kim Glas today in response to the administration’s plan to institute a 90-day deferral on MFN tariffs,  as reported by numerous press outlets.

The reported plan being pushed by the importing and retailing industries would defer certain tariffs, including those on finished apparel products. It is an ill-advised policy that will hurt the U.S. textile industry at the very time it is answering the call of the nation to produce medical supplies to battle the coronavirus pandemic. 

NCTO has been at the forefront of the efforts to deploy resources, converting production lines to manufacture urgently needed medical supplies like face masks and their textile components,  to address the critical need for personal protective equipment and other medical and sanitation supplies in the fight against the coronavirus.

These unnecessary tariff concessions would benefit importers and retailers at the direct expense of manufacturers on the front lines of the COVID-19 response and send a demoralizing message.

Tariff deferrals would severely exacerbate ramifications for the U.S. economy, manufacturers and workers and open the floodgates for imports.

If the U.S. government makes tariff concessions during this crisis, it will be inviting a virtual tsunami of imports further devastating domestic manufacturing as it attempts to regain its footing.     

We urge the administration to abandon any moves to defer tariffs on finished products. It would only serve to allow importers to exploit the current crisis, while dealing a severe blow to U.S. manufacturing and its workers.  

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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 585,240 in 2019. 
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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NCTO Releases Statement on Coronavirus

WASHINGTON DC—National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today on the industry’s response to the coronavirus crisis.

The coronavirus has impacted Asian textile and apparel manufacturing productivity and output, and our concerns lie with the affected companies and workers during this terrible crisis.

The U.S. textile industry continues to be ready, able, and willing to help in any way possible. Our industries have been in touch with U.S. government officials to help identify key U.S. textile suppliers to provide surgical masks and other items to help contain the spread of the coronavirus. In addition, several companies have donated much-needed medical textile supplies and other sanitary items to help address this outbreak.

Given the uncertainty in the market as a result of the coronavirus, many textile and apparel sourcing executives are seeking alternatives outside of Asia. We stand ready to assist brands and retailers looking to shift sourcing during this uncertain time. The Western Hemisphere production platform established under our free trade agreements and trade preference programs provides a sound alternative as companies look to diversify their sourcing. The region has immediate capacity to meet worldwide demands with duty-free access through well-established supply chains.

Whether this terrible crisis lasts days, months, or longer – our member companies are ready and willing to help.

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

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NCTO Statement on Signing of 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, released the following statement on the Phase One Deal on 301 tariffs signed today by the U.S. and China.

“While we are still studying the details of the deal signed today, we applaud the administration for finally pressing China for a more rational and equal trade relationship,” said NCTO President and CEO Kim Glas. “Our industry has been severely damaged by China’s predatory practices over the past 30 years and we are anxious to see a new era of sound trade principles and balanced trade.

At the same time, we question the last-in, first-out approach to the tariff reductions.  In our sector, this means that the penalty 301 tariffs on finished apparel and sewn products–the areas where tariffs have the most potential to effect reforms in China while bolstering the Western Hemisphere supply chain– are cut in half while U.S. manufacturers continue to face full tariffs on certain inputs and equipment not available domestically.”

For more information on NCTO’s position on the Section 301 China tariffs, please see here:

NCTO Comments on the Administration’s Announced Phase One Deal on 301 Tariffs December 13, 2019

NCTO Welcomes Administration’s Inclusion of Finished Apparel Textile Products on China Tariff List August 13, 2019

NCTO President CEO Kim Glas Testifies at U.S. Trade Representative’s Hearing on Proposed 301 Tariff List June 20, 2019

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


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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

www.ncto.org

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NCTO & Member Companies Testify at U.S. International Trade Commission Hearing on Proposed 301 Tariff List

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) and several of its member companies are set to testify at the U.S. Trade Representative’s nearly two-week long hearing on the proposed Section 301 tariff list as part of the administration’s ongoing review and consideration of the Tranche 4 of retaliatory tariffs on U.S. imports from China.

Daniel Nation, Director of Government Relations for Parkdale Mills, a member of NCTO, will kick ff the U.S. textile industry’s testimony on the first day of the hearing.

China’s rampant abuse of intellectual property rights and intellectual property theft has spanned decades at the direct expense of the U.S. textile industry and its supply chain, largely contributing to the U.S. trade deficit with China in textile and apparel products—totaling $46.5 billion in 2018—and the loss of 1 million manufacturing jobs in this critical sector.

“There is little doubt that China’s extreme position in the global textile and apparel marketplace has been advanced by an elaborate system of illegal practices, that include state sponsored subsidies, unethical labor and environmental practices and theft of intellectual property,” Nation said in prepared remarks for today’s USTR hearing. “Consequently, Parkdale supports the existing Section 301 case against China.”

However, Nation stressed the effectiveness of the administration’s case has been “greatly diminished through the omission” of finished textile and apparel products from the various retaliatory tariff lists.

“Including finished textile and apparel products on the 301 retaliation list would greatly enhance the administration’s leverage in the ongoing negotiations and help redirect trade in this sector to the Western Hemisphere,” Nation said. The Western Hemisphere is a top export market for the U.S. textile industry, representing $15.7 million in textile and apparel exports.

“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,” said NCTO President and CEO Kim Glas, who is scheduled to testify at the hearing on June 20. “We believe this move will lead to the re-shoring of production to the United States and the Western Hemisphere production platform.  It’s critical we address and mitigate China’s rampant trade distortions.”

“While NCTO members support the inclusion of finished products in Tranche 4, we are seriously concerned that certain inputs already vetted by the administration and removed from previous retaliatory tariff lists are back on this list for proposed duties,” Glas noted. “Adding tariffs on imports of manufacturing inputs that are not made in the U.S. such as certain chemicals, dyes, machinery and rayon staple fiber in effect raises the cost for American companies and makes them less competitive with China.  We firmly believe the integrity of the earlier exclusion process should be upheld.”

“We also urge the U.S. government to institute a fair, transparent and expeditious exclusion system for all retaliation tranches,” Glas added.

“Lastly, we want to flag that the administration’s 301 efforts are being undermined by shipments under the $800 Section 321 de minimis threshold, which are not subject to the retaliatory tariffs – or any tariffs.  Section 321 is a substantial and growing loophole that gives China backdoor duty-free access to the U.S. market at a time when the administration is spearheading efforts to address China’s unfair trade practices,” Glas said.  “This should be rectified both in the 301 and broader context.”

NCTO and its member companies are strongly encouraging the USTR’s office and President Trump to adopt the following recommendations:

  • enact the proposed 25% penalty tariffs on finished apparel items and other sewn products;
  • maintain the previous product input exemptions that were vetted by the U.S. government and granted and excluded from previous tranches;
  • institute a transparent, fair and expeditious exclusion system for all tranches;
  • and apply 301 retaliatory tariffs to Section 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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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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