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CONTACT: Kristi Ellis

(202) 684-3091

Oct 3, 2019 Comments (0) Press Releases, Recent News, Uncategorized Like

NCTO supports President Trump’s announced plan to impose a 10% tariff on $300B of Chinese imports

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

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

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

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

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

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

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

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

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

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

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

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CONTACT: Kristi Ellis

(202) 684-3091

Aug 1, 2019 Comments (0) Uncategorized Like

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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CONTACT: Kristi Ellis

(202) 684-3091

Jun 27, 2019 Comments (0) Press Releases, Uncategorized 1

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

Jun 17, 2019 Comments (0) Press Releases, Recent News, Testimony and Statements, Uncategorized Like

NCTO & AAFA Unite in Letter to President Opposing Proposed Tariffs on Mexico

WASHINGTON, D.C. – Today, the National Council of Textile Organizations (NCTO) and American Apparel & Footwear Association (AAFA) sent a letter to President Donald J. Trump, opposing the proposed escalation in tariffs for all U.S. imports from Mexico. As the representatives of the apparel and textile supply chain, the organizations represent hundreds of thousands of American jobs dependent on duty-free trade in the North American region.

The full letter can be downloaded here.

Signed by the heads of both organizations, the letter states: “Raising tariffs on U.S. imports from Mexico will hurt U.S. workers. Currently, hundreds of thousands of American workers are deployed in production and other key value chains that depend on the North American trade partnership with Mexico, which is the market for half of all U.S. textile exports.”

“NCTO is joining with AAFA today in urging President Trump to refrain from imposing tariffs on U.S. imports from Mexico, an issue that is critically important to our integrated Western Hemisphere supply chains,” said NCTO President and CEO Kim Glas. “Mexico is the top export market for U.S. fiber, yarns, and fabrics and adding tariffs on Mexican imports of apparel and home furnishings will only hurt the U.S. textile industry’s growth and competitiveness and jeopardize jobs in both countries.”

“Further, these planned tariffs disrupt and distract congressional passage of the pending U.S.-Mexico-Canada Agreement (USMCA), a key administration priority, which not only strengthens the textile industry’s existing supply chain and our free trade partnership with Mexico, but also helps to expand it,” Glas added. “We urge the administration to support American workers by not imposing tariffs on U.S. imports from Mexico and helping get USMCA over the finish line.”

“AAFA and NCTO often have different ideas when it comes to trade policy, however we are totally united in opposition to the proposal to add tariffs on our products,” said Rick Helfenbein, president and CEO of the American Apparel & Footwear Association. “Potential tariffs on Mexico are an unwelcome and unnecessary tax on American workers and consumers at a time when we should be focusing on the ratification of the USMCA. Mexico is the eighth largest supplier of apparel and seventh largest supplier of footwear to the U.S. market, with 35 percent of men’s and boy’s jeans and 15 percent of work boots coming from south of the border. This move threatens our trade relationship with Mexico and the competitive advantage that supports hundreds of thousands of American jobs in the apparel, footwear, travel goods, and textile industries. We do not believe that immigration policy and trade policy should be cut from the same cloth.”

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About the National Council of Textile Organizations

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.

About the American Apparel & Footwear Association

The American Apparel & Footwear Association (AAFA) is the national trade association representing apparel, footwear and other sewn products companies, and their suppliers, which compete in the global market. Representing more than 1,000 world famous name brands, we are the trusted public policy and political voice of the apparel and footwear industry, its management and shareholders, its nearly four million U.S. workers, and its contribution of more than $400 billion in annual U.S. retail sales. AAFA provides exclusive expertise in trade, brand protection, and supply chain & manufacturing to help our members navigate the complex regulatory environment and lower costs. Members gain unparalleled access to information and exclusive insights on regulation and policy, and premier opportunities for networking and collaboration.

NCTO CONTACT: Kristi Ellis

202. 684-3091

AAFA MEDIA CONTACT:

Alexander Gibson

(202) 853-9356

agibson@aafaglobal.org

Jun 5, 2019 Comments (0) Uncategorized Like

NCTO Raises Serious Concerns over the Administration’s Plan to Impose Tariffs on Mexico

WASHINGTON, DC – Kim Glas, President & CEO of the National Council of Textile Organizations (NCTO), issued the following statement today in response to the administration’s decision under the International Emergency Economic Powers Act to assess penalty duties on Mexico as an attempt to address the growing immigration dispute on the U.S. southern border. The proposed 5% increase would begin on June 10 and incrementally increase to 25%, if the dispute is not resolved.

The magnitude of the trading relationship with Mexico is significant for the U.S. textile industry, representing $12.2 billion in two-way textile and apparel trade in 2018. The U.S. textile industry alone exported $4.7 billion in yarn and fabrics to Mexico last year and had a net export surplus of $3.8 billion.

As a result, Mexico is the single largest market for U.S.-made textile exports.

“We are very concerned about the impact these proposed tariffs would have on a critical and integrated supply chain for the U.S. and Mexico textile and apparel industries. Under the NAFTA agreement, the U.S. has benefited as a result of strong rules of origin that require the use of regional yarns and fabrics. As a result, the U.S. industry has made significant investment—$22.8 billion from 2006 to 2017—to help grow the manufacturing of fiber, yarns, and fabrics in the United States. NCTO supports the passage of the pending U.S.-Mexico-Canada Agreement (USMCA) because it is a critical trade agreement that will strengthen the industry’s supply chain representing approximately $20 billion in three-way trade,” Glas said.

“Adding tariffs to Mexican apparel imports, which largely contain U.S. textile inputs, would significantly disrupt this industry and jeopardize jobs on both sides of the border,” Glas said. “And as a result, it will accelerate substantially the immigration issues the administration is seeking to address.”

“In addition, this tariff increase would give a significant competitive advantage to China, which already accounts for about 38% of apparel and textile imports to the U.S.” Glas added. “In fact, if this increase goes forward it will drive business back to China at a time when the administration is trying to crack down on intellectual property abuses and make systemic trade reforms that have undermined U.S. manufacturing industries for decades. This proposal is extremely concerning to U.S. textile manufacturers and we will do all we can to amplify these concerns with the administration and members of Congress.”

Mexico and Canada together are the U.S. textile industry’s two largest export markets worldwide. In 2018, the U.S. ran a combined $3.8 billion surplus in textiles and apparel with those two North American Free Trade Agreement trading partners.

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

May 31, 2019 Comments (0) Press Releases, Recent News, Uncategorized Like

NCTO Comments on 301 Tariff Increase; Renews Call for Tariffs on Textile and Apparel End Items and Need for...

May 8, 2019

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) appreciates the Trump administration’s action to crack down on unfair trade practices from China through the Section 301 mechanism.

A Federal Register notice, set to be published on Thursday, states the administration’s intent to raise tariffs on $200 billion of imported Chinese goods from 10 percent to 25 percent on May 10. NCTO urges the administration to ensure an expeditious and transparent exclusion process and the inclusion of finished apparel and textile end products to this remedy.

“It’s long past time we address China’s unfair trade practices, particularly relating to intellectual property abuses,” said NCTO President and CEO Kim Glas.

“However, we remain very concerned that finished Chinese textile home furnishings and apparel are not on the administration’s retaliatory tariff list,” Glas said. “Chinese imports of finished goods into the U.S. market have the most significant impact on domestic textile and apparel production, investment and jobs. In order to address the crisis, we need to get to the very heart of the problem.”

According to U.S. government data, China predominantly ships end items to the U.S. versus intermediate inputs. Finished apparel, textile 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.

“NCTO also remains seriously concerned that some inputs critical to the competitiveness of U.S. textile manufacturers remain on the retaliation list and will now face a 25 percent tariff. Duty increases on inputs alone, without addressing the growing problem of end products can raise the cost of U.S. textile manufacturers trying to compete with like Chinese products,” Glas said. “We are pleased that the administration intends to announce an exclusion process and we urge that the process be fair, transparent, and expeditious.”

For more on this issue, see: NCTO Testimony to the Section 301 Committee on August 20, 2018

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

May 8, 2019 Comments (0) Press Releases, Recent News, Uncategorized Like

NCTO Announces New VP of Communications and Director of Regulatory & Technical Affairs

April 29, 2019

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) is pleased to announce the appointment of Kristi Ellis as the organization’s new Vice President of Communications, effective April 29, 2019, and Donald Vavala as the Director of Regulatory and Technical Affairs, effective May 2019.

As Vice President of Communications at NCTO, Kristi Ellis will assume responsibility for developing, overseeing, and implementing a communications strategy for the association and the domestic textile industry as a whole. Ms. Ellis brings 24 years of manufacturing and international trade reporting experience with leading publications such as Women’s Wear Daily and S&P Global Market Intelligence. The majority of her career, which includes nearly 10 years as Washington Bureau Chief for Women’s Wear Daily, has been spent reporting on textile trade policy matters. Regarding her appointment, Ms. Ellis said, “I am really excited and grateful to have the opportunity to help develop and shape NCTO’s communications strategy as we work to amplify the textile industry’s importance as a thriving and innovative manufacturing sector in the United States.”

As NCTO’s Director of Regulatory and Technical Affairs, Don Vavala will support all association activities related to federal government procurement and industry regulatory matters. In this capacity, Mr. Vavala will staff various NCTO committees covering a broad spectrum of contracting, technical, and environmental issues. Mr. Vavala comes to NCTO following a 31-year career at W.L. Gore, a NCTO member organization, where he most recently held the position of Director, Military Government Affairs. He will succeed Hardy Poole, who announced his resignation from the same position at NCTO, effective May 2019. Regarding his appointment, Mr. Vavala stated, “I am very excited about the opportunity to work with Ms. Glas and the staff at NCTO. The textile industry is a major component of the economic backbone of this great nation and I look forward to applying my 31 years of experience to insuring that the industry continues to thrive and maintain its status as a significant contributor to our country’s growth and prosperity.”

The hiring of Ms. Ellis and Mr. Vavala coincide with the arrival of Kimberly Glas as NCTO’s President & CEO, effective April 29, 2019. In referencing these two new hires, Ms. Glas stated, “I am excited Kristi and Don are joining the NCTO team at this important time. They both have significant experience with the textile industry and a wealth of knowledge specific to their new roles. Most importantly, both have shown a strong commitment to the success of the domestic textile industry. We are very fortunate to have them join the organization in these pivotal leadership roles. NCTO’s membership will be well served by these important staff additions.”

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: Rebecca Tantillo

(202) 822-8026

Apr 29, 2019 Comments (0) Press Releases, Recent News, Uncategorized Like

2019 State of the U.S. Textile Industry Address

WASHINGTON, DC – Outgoing 2018-19 National Council of Textile Organizations (NCTO) Chairman Marty Moran delivered the trade association’s 2019 State of the U.S. Textile Industry overview at NCTO’s 16^th Annual Meeting on March 21^st at the Capital Hilton in Washington, DC.

Mr. Moran’s speech outlined (1) U.S. textile supply chain economic, employment and trade data, (2) the 2019 policy priorities of domestic textile manufacturers, and (3) other NCTO activities.

A link to his remarks as prepared for delivery are included in this press statement along with a link to a data infographic prepared by NCTO illustrating the current economic status of the U.S. textile industry.

Mr. Moran is CEO of Buhler Quality Yarns, Corp., a fine-count yarn supplier headquartered in Jefferson, Georgia with plants and/or offices in America, Europe, the Middle East and Asia.

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

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: Rebecca Tantillo

(202) 822-8026

Mar 27, 2019 Comments (0) Press Releases, Recent News, Uncategorized Like

NCTO Elects North Carolina Manufacturing CEO as 2019 Chairman

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) held its 16^th Annual Meeting March 19-21 in Washington, DC. Elected as NCTO officers for 2019 are:

Chairman – Leib Oehmig, CEO of Glen Raven, Inc.
- Mr. Oehmig is CEO of Glen Raven, Inc., based in Glen Raven, North Carolina. Glen Raven is an innovative leader in textile research and development, dying, spinning, weaving and finishing, and distribution and logistics.
Vice Chairman – David Roberts, CEO of CAP Yarns, Inc.
- Mr. Roberts is CEO of CAP Yarns, Inc., based in Clover, South Carolina. CAP Yarns is a specialty yarn manufacturer and a leader in developing unique yarns for the knitting and weaving industry.

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

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.

# # #

Download Release

CONTACT: Rebecca Tantillo

(202) 822-8026

Mar 21, 2019 Comments (0) Press Releases, Recent News, Uncategorized Like