NCTO Elects North Carolina Manufacturing CEO as 2019 Chairman

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) held its 16th 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.

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CONTACT:  Rebecca Tantillo

(202) 822-8026

www.ncto.org

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NCTO Announces Kimberly Glas as Next President & CEO

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) is pleased to announce the appointment of Kimberly Glas as the organization’s new President & CEO, effective April 29th of this year.  Ms. Glas will succeed Augustine “Auggie” D. Tantillo, who previously announced his intention to step down from the same position at NCTO. 

Current NCTO Chairman Marty Moran, CEO of Jefferson, Ga.-based Buhler Quality Yarns, noted that the selection follows a rigorous search process that led to her unanimous approval by NCTO Board of Directors. Ms. Glas brings over 20 years of experience in government policy development and advocacy. Her multi-faceted career includes spearheading manufacturing and trade policy efforts on Capitol Hill, serving as a key leader on behalf of the textile industry in the Obama Administration, and most recently leading a non-profit organization working to advance critical policies to grow quality, U.S. jobs in the clean energy economy.

“We are fortunate, at this time of change and challenge to have Kim take the helm of this organization,” said Moran. “The U. S. textile industry is experiencing an exciting and dynamic period.  A new policy environment has evolved in Washington that places a greater emphasis on domestic manufacturing and Kim is an excellent choice to steer the industry through these new opportunities,” Moran added.  “NCTO has worked very closely with Kim over the years on Capitol Hill and in the Obama Administration.  Kim brings a strong combination of leadership skills, policy and advocacy know-how, and industry knowledge and has extensive experience working on manufacturing, trade, competitiveness, and sustainability issues.  We are thrilled she is taking on this important role at this time.”

“I am honored and excited for the opportunity to lead NCTO and to work on behalf of this innovative industry.  I am grateful to Auggie for his leadership and all his support and friendship over the years and am deeply appreciative to the NCTO membership for this incredible opportunity,” said Glas.  “I could not be more excited about taking on this role. I know how critical this industry is to so many across the United States and the value it represents. I am thrilled to be able to work on its behalf to advance its priorities.”

Ms. Glas most recently served as Executive Director of the BlueGreen Alliance, a national partnership of labor and environmental organizations working to advance the creation of quality U.S. jobs in the clean energy economy. In this capacity, she worked closely with labor, environmentalists and U.S. industry at the intersection of energy, the environment and trade to advance common-sense policy solutions in order to help achieve a stronger economy and a more sustainable future.

Prior to that, from 2009 to 2014, Ms. Glas served as the Deputy Assistant Secretary for Textiles, Consumer Goods and Materials at the U.S. Department of Commerce under the Obama administration. In this capacity, Ms. Glas managed three offices of nearly 40 employees and oversaw programs and strategies to improve the domestic and international competitiveness of the U.S. textile and apparel industries. Ms. Glas worked closely with the United States Trade Representative, other key agencies, and Congress to advance a multitude trade policy interests critical to the U.S. industry, including advancing fixes to the CAFTA-DR agreement to help maintain and grow the U.S. textile workforce.

Ms. Glas also brings extensive Capitol Hill experience, having worked for U.S. Representatives Michael Michaud of Maine and John J. LaFalce of New York.  Kim helped to initially organize, and then served as the key Congressional staffer for the House Trade Working Group, a key coalition of Members of Congress that works extensively on trade policy and domestic competitiveness issues to this day.

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

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

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NCTO Announces Retirement of President & CEO Auggie Tantillo

WASHINGTON, DC –  Augustine “Auggie” D. Tantillo, President & CEO of the National Council of Textile Organizations, has announced his intention to retire from his position later this year. Tantillo has enjoyed a 38-year, multifaceted career in the Washington policy arena, most of which involved direct representation of the U.S. textile industry.

NCTO Chairman Marty Moran stated, “Due to his vast institutional knowledge and skill in navigating policy matters in Washington, Auggie will certainly be missed. On behalf of our entire membership, I want to express our gratitude to Auggie for his dedicated and important service to our industry,” Moran added.

Tantillo stated, “It has been a tremendous privilege to represent an industry that has made such an enormous contribution to the U.S. economy and the U.S. workforce. I will always be grateful for the confidence that the domestic textile sector has shown in me as the head of this important organization.”

In the spring of last year, NCTO formed a search committee to undertake the process of selecting a replacement for Tantillo. After vetting numerous highly-qualified individuals and conducting a thorough interview process with leading candidates, the organization intends to make a public announcement on Tantillo’ s replacement in the coming weeks.

Tantillo has worked in government service or government relations in Washington, D.C. since 1981. Prior to joining NCTO, he served as Executive Director of the American Manufacturing Trade Action Coalition, a trade association dedicated to furthering the interests of U.S. manufacturing, particularly with respect to textiles. At earlier points in his career, Tantillo was Deputy Assistant Secretary for Textiles & Apparel at the U.S. Department of Commerce under President George H. W. Bush, and Chief of Staff to U. S. Senator Strom Thurmond of South Carolina. Tantillo earned a B.S. in Agricultural Economics from Clemson University.

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

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

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CONTACT:  Rebecca Tantillo
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NCTO Endorses USMCA; Pledges to Lobby Congress to Adopt the Agreement

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) board of directors has voted to endorse the U.S.-Mexico-Canada Agreement (USMCA). The United States, Canada and Mexico signed the USMCA on November 30. 

“On behalf of the U.S. textile industry, thank you to President Trump, Ambassador Lighthizer and the entire U.S. negotiating team for your hard work in getting USMCA done,” said NCTO Chairman Marty Moran, CEO of Jefferson, GA-based Buhler Quality Yarns Corp.

“The new deal is better than NAFTA for the U.S. textile industry in many aspects and NCTO is pleased to endorse it,” Moran added.

“NCTO was in continuous communication with U.S. negotiators during USMCA talks, urging them to preserve and enhance the North American textile supply chain, and the deal reflects many of NCTO’s priorities,” Moran finished as he noted U.S. textile-related exports to Canada and Mexico totaled a combined $11.8 billion in 2017. 

“NCTO will begin educating Congress immediately on how USMCA is an improvement over NAFTA and assuming any implementing legislation is restricted to the terms of the agreement as negotiated, we will press for its passage in early 2019,” said NCTO President & CEO Auggie Tantillo

USMCA improvements over NAFTA include:

·       A standalone chapter for textile and apparel; NAFTA does not have a separate chapter covering textile and apparel rules of origin

·       Stronger rules of origin for sewing thread, pocketing, narrow elastics and certain coated fabrics

·       Fixing the Kissell Amendment loophole

·       Stronger rules for customs enforcement

The U.S. International Trade Commission (ITC) held a public hearing on November 15-16 in Washington, D.C. as part of its investigation of the likely impact of the USMCA on the U.S. economy.  Tantillo testified on Panel 4, General Manufacturing, on Friday, November 16, the hearing’s second day, in more detail about how USMCA is an improvement to NAFTA.

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

·       U.S. employment in the textile supply chain was 550,500 in 2017. 

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

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

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

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CONTACT:  Lloyd Wood
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www.ncto.org

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

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

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

Tantillo’s testimony as prepared for delivery is below:

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

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

November 16, 2018

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

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

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

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

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

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

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

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

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

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

Conclusion

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

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

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

[NCTO testimony as prepared for delivery end]

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

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

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

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

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

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

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

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

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

·       U.S. employment in the textile supply chain was 550,500 in 2017. 

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

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

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

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

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

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

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

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

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

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

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

·       U.S. employment in the textile supply chain was 550,500 in 2017. 

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

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

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

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

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

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

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

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

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

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

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

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

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CONTACT:  Lloyd Wood
(202) 822-8028
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NCTO Applauds Continued IPR Enforcement Efforts; Renews Request for Added Tariffs on Chinese Textile and Apparel End Items

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

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

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

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

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

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

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

·       U.S. employment in the textile supply chain was 550,500 in 2017. 

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

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

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

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www.ncto.org

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NCTO Files Public Comments on Proposed Section 301 Tariffs

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

 

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

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

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

 

Dear Ambassador Lighthizer:

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

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

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

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

•          advanced technical textile products. 

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

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

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

Sincerely,

 

Augustine Tantillo
President & CEO
NCTO

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