Uncategorized
Category

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.”

###

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.

DOWNLOAD RELEASE

NCTO CONTACT: Kristi Ellis

202. 684-3091

www.ncto.org

AAFA MEDIA CONTACT:

Alexander Gibson

(202) 853-9356

agibson@aafaglobal.org

Jun 5, 2019 Comments (0) Uncategorized

Learn more

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.

# # #

Download Release

CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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

Learn more

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.

# # #

DOWNLOAD RELEASE

CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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

Learn more

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.

# # #

DOWNLOAD RELEASE

CONTACT: Rebecca Tantillo

(202) 822-8026

www.ncto.org

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

Learn more

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 16th Annual Meeting on March 21st 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.

# # #

DOWNLOAD RELEASE

CONTACT:  Rebecca Tantillo

(202) 822-8026

www.ncto.org

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

Learn more

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.

# # #

Download Release

CONTACT:  Rebecca Tantillo

(202) 822-8026

www.ncto.org

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

Learn more

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 of 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.

# # #

DOWNLOAD RELEASE

CONTACT: Rebecca Tantillo
(202) 822-8026
www.ncto.org

Feb 13, 2019 Comments (0) Press Releases, Recent News, Uncategorized

Learn more

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.

# # #

DOWNLOAD RELEASE

CONTACT:  Rebecca Tantillo
(202) 822-8026
www.ncto.org

Feb 4, 2019 Comments (0) Press Releases, Recent News, Uncategorized

Learn more

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.

# # #

DOWNLOAD RELEASE

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

Dec 6, 2018 Comments (0) Press Releases, Recent News, Uncategorized

Learn more

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.

# # #

DOWNLOAD RELEASE

DOWNLOAD TESTIMONY ONLY

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

Nov 16, 2018 Comments (0) Press Releases, Recent News, Testimony and Statements, Uncategorized

Learn more