NCTO Launches New Website “Textiles in the News”

WASHINGTON, DC – Today, the National Council of Textile Organizations (NCTO) launched Textiles in the News (TIN), a new website promoting the U.S. textile industry.  The website’s URL is http://www.textilesinthenews.org.

The first original content is an opinion piece by NCTO President & CEO Auggie Tantillo titled “Why NCTO Launched Textiles in the News.”

As part of NCTO’s American Textiles: We Make Amazing™ public relations effort to rebrand the U.S. textile industry, TIN’s mission is to showcase the dynamism of the U.S. textile industry and cover the policy issues that disproportionately impact the sector through:

  • Linking to the most relevant news and opinion pieces produced by other media outlets about or affecting the U.S. textile industry
  • Generating original content, including news and opinion from U.S. textile industry leaders and policy experts
  • Tracking U.S. textile industry social media posts

“While some may have an outdated perception of the U.S. textile industry, those working in the sector know it is a global powerhouse,” said NCTO President & CEO Auggie Tantillo.

“As a national trade association representing domestic textile manufacturers, NCTO wants to make sure policymakers, business leaders, journalists, prospective workforce entrants and others have greater awareness of this crucial fact.  This is the rationale behind creating TIN,” Tantillo continued.

Noting that trade press and international, national and local media outlets are posting compelling content daily about plant expansions, new products, innovation and policy issues important to the textile supply chain, Tantillo said, “NCTO’s Textiles in the News website is designed to make these exciting and informative developments easy to access, track and digest.”

“For those interested in U.S. textiles, and the extremely positive and pervasive impact our industry is making to better our lives, please visit TIN.  NCTO trusts you will find the website compelling and informative,” Tantillo added.

“To the media, please keep generating great stories on the modern U.S. textile industry.  NCTO wants to drive readers to that content.” Tantillo finished.

NCTO is a Washington, DC-based trade association representing the U.S. textile industry.

NCTO’s TIN website was built by AS Creative Services, a Rockville, MD-based web design firm and its newsfeed is powered by Meltwater, a leading international provider of Media Intelligence.

Key facts about the U.S. textile industry include:

  • 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 last year, a 16% increase since 2009.
  • U.S. exports of fiber, textiles and apparel were $28.6 billion in 2015.
  • 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
lwood@ncto.org

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U.S. Textile, Fiber Trade Associations Announce Merger

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) and the American Fiber Manufacturers Association (AFMA) announced a merger of their respective organizations effective April 1, 2018.

NCTO Chairman William V. “Bill” McCrary Jr., Chairman & CEO, William Barnet & Son, Spartanburg, S.C. said, “The NCTO merger with AFMA strengthens the U.S. textile industry’s ability to influence federal policy.  It brings new members and financial resources to NCTO and extends the organization’s political reach.”

“It also cements NCTO’s status as the voice of every facet of the U.S. textile production chain, a fact that will help NCTO to more effectively influence federal policies that affect U.S. textile investment, production and workers,” McCrary added.

AFMA Chairman Mark Ruday, Senior Vice President, DAK Americas, Charlotte, N.C. said, “AFMA’s merger with NCTO will allow U.S. fiber producers to keep the sector’s seat at the federal policy table.”

“As a multi-billion industry with tens of thousands of employees, it is critical that the U.S. man-made fiber sector stay engaged in Washington,” Ruday continued.

Noting that NCTO constantly monitors and engages in all major textile policy matters that impact the entire production chain, including key international trade negotiations, congressional initiatives and federal procurement and regulatory matters, Ruday said, “Merging with NCTO will ensure the U.S. fiber manufacturers have an effective voice on policy matters affecting the sector.”

The merged organization will be called by the name National Council of Textile Organizations, and NCTO President & CEO Auggie Tantillo will continue in that position.

NCTO is a Washington, DC-based trade association representing the U.S. textile industry.

Four councils, Fiber, Yarn, Fabric & Home Furnishings, and Industry Support comprise NCTO’s leadership structure.  Each represents a major sector of the U.S. supply chain and elects its own officers who make up NCTO’s board of directors.

AFMA is an Arlington, Va.-based trade association representing U.S. companies that manufacture synthetic and cellulosic fibers.

  • 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 last year, a 16% increase since 2009.
  • U.S. exports of fiber, textiles and apparel were $28.6 billion in 2015.
  • 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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Textile Industry Praises Trump China NME Decision, Urges Aggressive Trade Enforcement

WASHINGTON, DC — With President Donald Trump headed to Asia this November 3-14 to visit Japan, South Korea, China, Vietnam and the Philippines, the National Council of Textile Organizations (NCTO) praised the Trump administration’s recent determination reaffirming China’s non-market economy status for antidumping purposes and called for even more aggressive U.S. enforcement to crack down on unfair trade practices.

“The evidence could support no other decision,” said NCTO President & CEO Auggie Tantillo as NCTO concurred with the U.S. Department of Commerce’s exhaustively researched determination that China is still a non-market economy.

Tantillo added, “Properly defining China as a non-market economy simply confirms what every U.S. manufacturer already understands — China has a set of unfair and extraordinary advantages that allow them to displace investment, production and employment in our market.”

“We encourage President Trump to use his trip to Asia to reaffirm his commitment to enforcing America’s trade laws fairly, but resolutely,” Tantillo continued, pointing to public comments filed by NCTO[1] suggesting additional reasonable activities the U.S. government could undertake to improve trade enforcement, thereby creating more good jobs.

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

  • U.S. employment in the textile supply chain was 565,000 in 2016.
  • The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009.
  • U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016.
  • Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.
  • NCTO is also a member of Manufacturers for Trade Enforcement, a multi-industry coalition supporting the continued designation of China as a non-market economy.

[1] See page 12.

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NCTO Statement on Passing of Mark Kent, CEO of KENTWOOL

WASHINGTON, DC – Mark Kent, CEO of Greenville, South Carolina-based KENTWOOL, an innovative producer of wool yarn, hosiery and other textile products, died on September 24. He was 55.

Reacting to Kent’s death, National Council of Textile Organizations (NCTO) President & CEO Auggie Tantillo said, “Mark’s unexpected passing is another severe and tragic blow for the U.S. textile industry. He was an expert in his field who cared deeply for his workers and the communities that relied on KENTWOOL to provide employment and investment.”

“From a national policy standpoint, Mark’s insight and direction on issues impacting the U.S. wool textile sector will be especially missed.”

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

  • U.S. employment in the textile supply chain was 565,000 in 2016.
  • The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009.
  • U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016.
  • Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

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CONTACT: Lloyd Wood
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Robert H. Chapman, III, 1951-2017; Past NCTO Chairman, Was Chairman & CEO of Inman Mills

WASHINGTON, DC – The immediate past chairman of the National Council of Textile Organizations (NCTO), Robert “Rob” H. Chapman, III, died August 23.  He was 66.  Chapman was the Chairman & CEO of Inman Mills, a yarn spinning and fabric weaving company headquartered in Inman, South Carolina.

“On behalf of the U.S. textile industry, NCTO extends its deepest sympathies to the Chapman family and everyone at Inman Mills,” said NCTO President & CEO Auggie Tantillo.

“Rob’s legacy is immense.  In the last two decades, globalization, particularly the entry of China into the World Trade Organization, triggered the most disruptive change ever experienced by the U.S. textile industry.  When other companies were going out of business, Inman Mills responded with a strategy of innovation, reinvestment and a willingness to adapt.  Today, thanks to Rob’s dedication and foresight, Inman Mills is one of the shining lights in the renaissance of the U.S. textile industry,” Tantillo continued.

“Rob was also leader in crafting the U.S. textile industry’s Washington, D.C.-based policy response to globalization.  It speaks volumes that Rob’s peers chose him to lead NCTO in 2016-2017 when debate on the now failed Trans-Pacific Partnership (TPP), the biggest challenge to the U.S. textile industry since China’s 2001 entry into the WTO, was coming to a climax,” Tantillo added. 

“Finally, on a personal note, Rob was a close friend.  He was a true gentleman, unfailingly courteous, loyal and generous.  Soft spoken and quick to deflect credit to others, Rob was a fierce competitor, driven by the desire to help his community and industry.  Most of all, Rob loved his family and his many associates at Inman. He dedicated his life to their well-being.  If there ever was any doubt that builders can build faster than destroyers can destroy, Rob was living proof.  He will be greatly missed, but his legacy will long endure,” Tantillo finished.

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

·       U.S. employment in the textile supply chain was 565,000 in 2016. 

·       The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009. 

·       U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016. 

·       Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

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CONTACT:  Lloyd Wood
(202) 822-8028

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Textile Industry Files Comments on Trade Agreement Violations and Abuses

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) filed public comments late yesterday afternoon in response to President Trump’s executive order directing the federal government to investigate violations and abuses of U.S. trade agreements.

“A thorough investigation of trade agreement abuses and violations is long overdue and we appreciate President Trump’s desire to finally review this important matter,” said NCTO President and CEO Auggie Tantillo.

“If America is to fix the systemic problems that plague the international trading structure and stop trade cheats from driving American production offshore, policymakers need a better understanding of the illegal or unfair trade tactics that are being used to hurt U.S. industry, including textiles,” Tantillo finished.

A notice for public comments (82 FR 29622) was issued by the U.S. Department of Commerce and the Office of the U.S. Trade Representative (USTR) on June 29, 2017 pursuant to Executive Order 13796 signed by President Trump on April 29, 2017. Documents associated with this matter are archived under Docket USTR-2017-0010.

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

• U.S. employment in the textile supply chain was 565,000 in 2016.
• The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009.
• U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016.
• Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

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CONTACT: Lloyd Wood
(202) 822-8028

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NCTO CEO Testifies at USTR NAFTA Hearing, Outlines U.S. Textile Renegotiation Objectives

WASHINGTON, DC – National Council of Textile Organizations (NCTO) President & CEO Auggie Tantillo testified at the U.S. Trade Representative’s (USTR) hearing on Negotiating Objectives Regarding Modernization of North American Free Trade Agreement (NAFTA) with Canada and Mexico held in Washington, DC on Tuesday, June 27.

In his remarks as prepared for delivery, Tantillo outlined the U.S. textile industry’s NAFTA negotiating objectives:

“On behalf of the National Council of Textile Organizations, thank you for the opportunity to provide input as USTR develops its objectives for modernizing NAFTA.  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 565,000 workers nationwide.  In 2016, the industry manufactured over $74 billion in output, while exporting more than $26 billion of our production.

We strongly support President Trump’s intention to reopen NAFTA and agree that it can be updated and improved to significantly enhance U.S. textile production, exports, and employment.  The NAFTA region enjoys vibrant fiber, yarn, and fabric sectors in addition to cut and sew capabilities.  As a result, NCTO supports building on the successes of NAFTA through seeking reasonable improvements to the agreement, but not a cancellation thereof, due to the high level of supply chain integration that exists today.

This partnership is evidenced by robust trade flows.  The U.S. textile sector has a demonstrated capability of developing export markets within the NAFTA region.  In fact, Mexico and Canada are our two largest export markets, where U.S. textile and apparel exports topped $11 billion in 2016.  Furthermore, we maintain a positive trade balance in the sector with our NAFTA partners, achieving a $3.5 billion surplus last year.

NCTO does not foresee a need to reinstate tariffs on NAFTA-qualifying trade.  Instead, we recommend a thorough review of the rules of origin to ensure that lucrative tariff benefits are appropriately reserved for manufacturers within the region.  NAFTA is based on a yarn-forward rule of origin for textile and apparel trade, a main driver for the integration that has developed among the three countries.  Yarn forward was originally devised under NAFTA and is the accepted rule for the industry and the U.S. government in every free trade agreement (FTA) since because it reserves key benefits for manufacturers within the signatory countries.  It is also easier to enforce than a value-added rule.

Despite the logic of the yarn-forward structure, most U.S. FTAs, including NAFTA, also contain damaging loopholes in the textile rules of origin.  The most egregious example is tariff preference levels.  Tariff preference levels (TPLs) allow for products to be shipped duty free despite their components, representing the bulk of the value, being sourced from outside countries.  For example, a cotton top, made from Chinese yarn and fabric, can be cut and sewn in Mexico and shipped duty free to the United States.  Consequently, TPLs undermine benefits for NAFTA textile manufacturers, transferring them to non-signatories, such as China, who often use predatory trading practices and have made no market-opening concessions themselves.

Altogether, Mexico and Canada may ship nearly 236 million square meter equivalents of apparel, made-ups, and fabric and 12.8 million kilograms of yarn containing third-party inputs annually under the TPLs.  It is our strong recommendation that the NAFTA TPL regime be eliminated.

Beyond TPLs, there are other yarn-forward derogations, including assembly-only rules for certain garments.  These additional loopholes warrant analysis to determine whether they should be eliminated or adjusted to enhance the benefits for U.S. textile manufacturers under the agreement.   We also believe that there should be a review of certain buy-American concessions that were unnecessarily granted to our NAFTA partners.

As a final point, it is our view that there has been a systematic deemphasis of commercial fraud enforcement at U.S. Customs and Border Protection (CBP) over the past 30 years.  CBP suffers from both a lack of resources and focus particularly considering the layering of new trade agreements and significant increase in imports over this time.  As a result, the benefits of NAFTA are being siphoned off by those willing and able to circumvent U.S. trade laws.  Our sector is especially prone to fraud, noting that textiles and apparel represent 40 percent of all U.S. duties collected, or $14 billion a year.  Clearly, improving NAFTA customs enforcement should be a major focus of this renegotiation.

In conclusion, we fully agree with President Trump that NAFTA can be improved through a set reasonable adjustments to the current text designed to enhance U.S. textile manufacturing and exporting.  Further, we believe that by closing unnecessary loopholes in the agreement and placing a greater emphasis on customs enforcement, all parties throughout the NAFTA region will benefit.  Doing so will help to build on the vibrant textile and apparel production chain in North America that has evolved under NAFTA.

Thank you for your consideration of our views, and NCTO looks forward to working with the Trump administration as the NAFTA modernization effort progresses.”

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CONTACT:  Lloyd Wood
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U.S. Textile Industry Files Public Comments on NAFTA Renegotiation Objectives; Eager to Work with President Trump to Improve Deal

WASHINGTON, DC – Today, the National Council of Textile Organizations (NCTO) filed public comments with the Office of the U.S. Trade Representative (USTR) outlining the U.S. textile industry’s priorities in the forthcoming renegotiation of the North American Free Trade Agreement (NAFTA).  (The comments are pasted at the bottom of this release.)

“The U.S. textile industry welcomes President Trump’s decision to renegotiate NAFTA,” said NCTO Chairman William V. McCrary Jr., Chairman and CEO of William Barnet & Son, LLC, a synthetic fiber/yarn/polymer firm headquartered in Spartanburg, South Carolina.

“It is in America’s national interest to modernize the agreement and NCTO is eager to work with President Trump to make it even better,” McCrary continued.

“Let me be clear: NAFTA is vital to the prosperity of the U.S. textile industry, and NCTO steadfastly supports continuing the agreement.  With that said, NAFTA can be improved to incentivize more textile and apparel jobs and production in the United States, Canada, and Mexico,” McCrary added. 

“Eliminating loopholes that shift production to third-party countries like China and devoting more customs enforcement resources to stop illegal third-country transshipments are two changes that would make the agreement better,” McCrary said.

“We look forward to working with our industry partners throughout the NAFTA region to improve this agreement for all,” McCrary finished.   

U.S. Trade Representative Robert Lighthizer formally notified Congress on May 18, 2017 that President Trump intended to renegotiate NAFTA.  This action triggered a request for public comments found at 82 FR 23699 and dated May 23, 2017 (Docket: USTR–2017–0006).  That public comment period closes today. 

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

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NCTO Pays Tribute to Late AFMA President Paul O’Day

WASHINGTON, DC – Paul O’Day, President of the American Fiber Manufacturers Association (AFMA) since 1984, died on June 1.  He was 82.

“It is a sad day for the U.S. textile industry,” said National Council of Textile Organizations (NCTO) Chairman William V. McCrary Jr., Chairman and Chief Executive Officer of William Barnet & Son, LLC, a synthetic fiber/yarn/polymer firm with plants and/or offices in the Americas, Europe, and Asia headquartered in Spartanburg, South Carolina.

“I’ve been proud to call Paul a friend for decades and worked with him closely during my two-year stint as AFMA chairman.  He was a strategic thinker who safeguarded the U.S. fiber industry’s interests in Washington during very tumultuous times,” McCrary continued.

“Many important policy issues arose during Paul’s three decades as president at AFMA that would not have been resolved favorably without his wise counsel and resolute, steady leadership,” McCrary added.

NCTO President and CEO Auggie Tantillo, who worked directly with O’Day since the early 1980s said, “For 33 years, Paul O’Day exhibited an unmatched dedication to AFMA and the industry he loved.”

“Paul represented his constituency with a style and level of decorum virtually unheard of in the current Washington environment.  Famously courteous and humble, Paul won heated policy debates through the power of his extraordinary intellect, his expansive institutional knowledge and his total command of the subject matter at hand.  Completely secure in his role and the critical contribution he made to every project, Paul was always quick to defer credit and to shower praise on his colleagues,” Tantillo added.

“Fiber manufacturers and the U.S. textile industry lost a priceless asset who will be greatly and deservedly missed,” Tantillo finished.

AMFA’s press statement on Paul O’Day’s passing is at this link, and his obituary can be found here. 

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

 ·       U.S. employment in the textile supply chain was 565,000 in 2016. 

·       The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009. 

·       U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016. 

·       Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

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CONTACT:  Lloyd Wood
(202) 822-8028
lwood@ncto.org

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NCTO Welcomes Trump Decision to Renegotiate NAFTA

WASHINGTON, DC – Today, U.S. Trade Representative Robert Lighthizer formally notified Congress that President Trump intends to renegotiate the North American Free Trade Agreement (NAFTA), a trilateral free trade agreement between the United States, Canada, and Mexico.

“The U.S. textile industry welcomes President Trump’s decision to renegotiate NAFTA,” said National Council of Textile Organizations (NCTO) President and CEO Auggie Tantillo.

“It is in America’s national interest to modernize the agreement,” Tantillo continued.

“Let me be clear: NAFTA is vital to the prosperity of the U.S. textile industry, and NCTO steadfastly supports continuing the agreement.  With that said, NAFTA can be improved to incentivize more textile and apparel jobs and production in the United States, Canada, and Mexico,” Tantillo added.

“Eliminating loopholes that shift production to third-party countries like China and devoting more customs enforcement resources to stop illegal third-country transshipments are two changes that would make the agreement better,” Tantillo said.

“We look forward to working with our industry partners throughout the NAFTA region to improve this agreement for all,” Tantillo finished.

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

  • U.S. employment in the textile supply chain was 565,000 in 2016.
  • The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009.
  • U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016.
  • Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

NAFTA Textile and Apparel Trade Flows

U.S. Textile and Apparel Exports – In Thousand Dollars
2014 2015 2016
To Mexico $6,208,045 $6,510,071 $5,936,873
To Canada $5,595,784 $5,246,776 $5,160,422
NAFTA Total $11,803,828 $11,756,847 $11,097,296

 


U.S. Imports of Textiles and Apparel – In Thousand Dollars
2014 2015 2016
From Mexico $5,875,311 $5,776,274 $5,656,997
From Canada $2,103,254 $2,041,965 $1,991,173
NAFTA Total $7,978,565 $7,818,239 $7,648,170

 

U.S. Textiles and Apparel Trade Balance – In Thousand Dollars
2014 2015 2016
With Mexico $332,734 $733,797 $279,876
With Canada $3,492,530 $3,204,811 $3,169,249
NAFTA Total $3,825,263 $3,938,608 $3,449,126

Source for data in table: U.S. Department of Commerce, Office of Textiles and Apparel

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CONTACT:  Lloyd Wood
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