NCTO Statement on Trade Legislation Passed by the Senate Today (5/14/2015)

NCTO Statement on Trade Legislation Passed by the Senate Today

NCTO commends the Senate for earlier today passing two important pieces of trade legislation H.R. 1295 and H.R. 644, addressing trade preference programs and customs enforcement. As the Senate now moves to consider another trade package including Trade Promotion Authority (TPA) and Trade Adjustment Assistance (TAA), NCTO urges the chamber to pass a clean TPA bill without harmful amendments that will damage U.S. textile jobs, manufacturing, and exports.

5/14/2015

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NCTO Applauds USTR for Confronting China on Illegal Export Subsidies

February 11, 2015

NCTO Applauds USTR for Confronting China on Illegal Export Subsidies

Washington, D.C. – The National Council of Textile Organizations (NCTO) applauds U.S. Trade Representative Ambassador Michael Froman’s decision to pursue dispute settlement consultations with the Government of China at the World Trade Organization (WTO) concerning China’s “Demonstration Bases-Common Service Platform” export subsidy program. (Ambassador Froman’s press release linked here)

Through this program, China provides WTO prohibited export subsidies to manufacturers which meet export performance criteria. These illegal subsidies have bolstered China’s meteoritic export surge of textiles and apparel into the U.S. market. The chart below demonstrates the phenomenal growth of Chinese textile and apparel exports to the U.S. market since 2001.

China’s massive export growth over this period resulted in billions of dollars in lost sales and tens of thousands of lost jobs in the U.S. and the Western Hemisphere. “It has been NCTO’s long standing position that China’s rise in the global textile and apparel market has been substantially aided by illegal and unfair trading practices. These illegal practices distort the global market place and put the entire U.S. manufacturing base at a considerable disadvantage,” stated NCTO president Augustine Tantillo. “We applaud the Obama Administration for today’s decision to hold our international trading competitors to their WTO obligations,” he continued.

When afforded a level playing field, the U.S. textile and apparel industry can compete with any country in the world. In 2013*, the U.S. textile and apparel industry was the third largest exporter of textile and apparel products in the world, exporting nearly $24 billion in goods. The industry is also a significant contributor to the overall U.S. economy, producing over $70 billion in annual output. Most importantly, the industry remains a major employer in the United States, providing jobs for nearly 500,000 workers from fiber production to finished product in 2013*. Additionally, for every one direct textile or apparel job, there are three additional jobs supported within the U.S. economy.  

NCTO encourages the U.S. to strenuously pursue this matter at the WTO in order to begin the eradication of these illegal trading practices. Doing so will lead to more fair and open competition in the global market.

*This press release contains 2013 data. Full year 2014 data has not yet been released by the USITC.

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NCTO Joins With Leading Manufacturing Organizations to Call for Immediate Action on Currency Manipulation

For Immediate Release

August 21, 2014

NCTO Joins With Leading Manufacturing Organizations to Call for Immediate Action on Currency Manipulation

Columbia, S.C. — The National Council of Textile Organizations (NCTO) joined with the American Automotive Policy Council (AAPC) and the American Iron and Steel Institute (AISI) today to seek U.S. government action to stop currency manipulation. NCTO called upon lawmakers to adopt meaningful legislation to stop predatory currency practices and the Executive Branch to include strong and enforceable currency manipulation disciplines in all future trade agreements.

Export-oriented countries such as China and Vietnam have been shown to purposefully devalue their currency in order to promote their exports and to block imports into their markets. This practice places the entire U.S. manufacturing base at a considerable disadvantage when it comes to international trade.

During an event today in Columbia, S.C., the three organizations highlighted how unfair currency policies hurt American job creation and economic growth. According to a 2014 study by the Economic Policy Institute, ending unfair currency policies can create as many as 2.3 million new manufacturing jobs in the United States by leveling the playing field in global markets.

“NCTO is pleased to join with other major manufacturing associations to highlight the need for currency reform,” said Augustine Tantillo, President of NCTO. “Currency manipulation distorts the global marketplace and puts American workers at a disadvantage. NCTO calls upon congressional leaders to support legislative initiatives that create tangible remedies for U.S. manufacturers that have been damaged by unfair currency practices.”

“Currency manipulation affects all U.S. manufacturing,” Tantillo continued, “As a result, we need a bipartisan solution that involves both the Legislative and Executive Branches of our government.”

The U.S. textile and apparel industries employ nearly 500,000 workers in the United States, including 19,400 textile industry jobs in South Carolina.

SC Currency Press Release

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NCTO Joins With Leading Manufacturing Organizations to Call for Immediate Action on Currency Manipulation

For Immediate Release

August 20, 2014

NCTO Joins With Leading Manufacturing Organizations to Call for Immediate Action on Currency Manipulation

Greensboro, N.C. — The National Council of Textile Organizations (NCTO) joined with the American Automotive Policy Council (AAPC) and the American Iron and Steel Institute (AISI) today to seek U.S. government action to stop currency manipulation. NCTO called upon lawmakers to adopt meaningful legislation to stop predatory currency practices and the Executive Branch to include strong and enforceable currency manipulation disciplines in all future trade agreements.

Export-oriented countries such as China and Vietnam have been shown to purposefully devalue their currency in order to promote their exports and to block imports into their markets. This practice places the entire U.S. manufacturing base at a considerable disadvantage when it comes to international trade.

During an event today in Greensboro, N.C., the three organizations highlighted how unfair currency policies hurt American job creation and economic growth. According to a 2014 study by the Economic Policy Institute, ending unfair currency policies can create as many as 2.3 million new manufacturing jobs in the United States by leveling the playing field in global markets.

“NCTO is pleased to join with other major manufacturing associations to highlight the need for currency reform,” said Augustine Tantillo, President of NCTO. “Currency manipulation distorts the global marketplace and puts American workers at a disadvantage. NCTO calls upon congressional leaders to support legislative initiatives that create tangible remedies for U.S. manufacturers that have been damaged by unfair currency practices.”

“Currency manipulation affects all U.S. manufacturing,” Tantillo continued, “As a result, we need a bipartisan solution that involves both the Legislative and Executive Branches of our government.”

The U.S. textile and apparel industries employ nearly 500,000 workers in the United States, including 42,300 textile industry jobs in North Carolina.

NC Currency Press Release

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NCTO Joins With Leading Manufacturing Organizations to Call for Immediate Action on Currency Manipulation

For Immediate Release

August 13, 2014

 

NCTO Joins With Leading Manufacturing Organizations to Call for Immediate Action on Currency Manipulation

 

Cleveland, OH — The National Council of Textile Organizations (NCTO) joined with the American Automotive Policy Council (AAPC) and the American Iron and Steel Institute (AISI) today to seek U.S. government action to stop currency manipulation. NCTO called upon lawmakers to adopt meaningful legislation to stop predatory currency practices and the Executive Branch to include strong and enforceable currency manipulation disciplines in all future trade agreements.

Export-oriented countries such as China and Vietnam have been shown to purposefully devalue their currency in order to promote their exports and to block imports into their markets. This practice places the entire U.S. manufacturing base at a considerable disadvantage when it comes to international trade.

During an event today at the City Club in Cleveland, Ohio, the three organizations highlighted how unfair currency policies hurt American job creation and economic growth. According to a 2014 study by the Economic Policy Institute, ending unfair currency policies can create as many as 2.3 million new manufacturing jobs in the United States by leveling the playing field in global markets.

“NCTO is pleased to join with other major manufacturing associations to highlight the need for currency reform,” said Augustine Tantillo, President of NCTO. “Currency manipulation distorts the global marketplace and puts American workers at a disadvantage. NCTO calls upon congressional leaders to support legislative initiatives that create tangible remedies for U.S. manufacturers that have been damaged by unfair currency practices.”

“Currency manipulation affects all U.S. manufacturing,” Tantillo continued, “and as a result we need a bipartisan solution that involves both the Legislative and Executive Branches of our government.”

The U.S. textile and apparel industries employ nearly 500,000 workers in the United States, including 4,796 textile industry jobs in Ohio.

 

PDF of Release: OH Currency Press Release

 

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NCTO, CANAINTEX, CECATEC-RD RALLY FOR STRONG RULES IN THE TPP ON CAPITOL HILL

FOR IMMEDIATE RELEASE

June 12, 2014

NCTO, CANAINTEX, CECATEC-RD

RALLY FOR STRONG RULES IN THE TPP ON CAPITOL HILL

WASHINGTON, D.C. — On June 10, U.S. textile manufacturers joined with their counterparts throughout the Western Hemisphere to communicate to congressional leaders the importance of adopting fair and reasonable textile rules in the Trans-Pacific Partnership (TPP).  The event brought together the trade associations for U.S., Mexican, and Central American textile and apparel producers, CEOs of regional manufacturers, and trade representatives of CAFTA-DR governments. Meetings highlighted the strong growth in trade and investment in textile manufacturing as a result of the NAFTA and CAFTA-DR trade agreements.

The group met with House and Senate leadership offices, including aides to Senate Majority Leader Harry Reid, Speaker John Boehner, and House Majority Leader Eric Cantor, and staff for the House Ways and Means and Senate Finance Committees, and leaders of the House Textile Caucus. Discussions focused on the need for a strong “yarn forward” rule of origin, robust customs enforcement, and reasonable tariff phase outs for sensitive products in TPP.

“Mexico is a key textile and apparel producer in the Western Hemisphere and is a critical part of the supply chain for many American textile and apparel companies,” said Nora Ambriz, Executive Director of CANAINTEX. “Ninety-six percent of Mexican apparel exports are shipped to the United States each year and Mexico is the leading export destination for U.S. textiles and apparel. NAFTA has created this dynamic and integral relationship between the U.S. and Mexico’s textile and apparel sectors and it is critically important that TPP does not damage the Western Hemisphere supply chain in this sector.”

“A final TPP must contain provisions that have been the foundation of U.S. trade agreements over the past 25 years: fair rules of origin, common sense market access rules, and strong customs enforcement provisions,” said Jay Self, Chairman of NCTO and President and CEO of Greenwood Mills. “The NAFTA and CAFTA-DR free trade agreements have created a sustainable and competitive manufacturing platform for U.S. textile and apparel companies which allows us to compete in the global market. It is imperative that U.S. trade policy continues to foster the economic growth seen under these agreements by building on the successful rules they contain.”

“The U.S. and the CAFTA-DR region, including the Dominican Republic, have created a prosperous and sustainable integrated manufacturing platform,” said Karin de Leon, Executive Director of CECATEC-RD. “This partnership provides hundreds of thousands of manufacturing jobs throughout the CAFTA-DR region, and is responsible for billions in two-way trade with the United States.”

About the organizations:

CANAINTEX is the leading organization representing the textile value chain in México.

CECATEC-RD  is a nonprofit and regional organization which integrates the associations and chambers of the apparel and textile sector in Central America and Dominican Republic, representing and developing strategies for promotion, development and protection of the industry in the region.

National Council of Textile Organizations (NCTO), headquartered in Washington, DC, with an office in Gastonia, NC, is the national trade association representing the entire spectrum of the textile sector. For more information about the U.S. textile industry, view NCTO’s website at www.ncto.org.

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PDF: PRESS RELEASE NCTO, CANAINTEX, CECATEC-RD RALLY FOR STRONG RULES IN THE TPP ON CAPITOL HILL

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NCTO Statement on Formaldehyde for The Dr.OZ Show

Why Formaldehyde is used:

Formaldehyde is a chemical used in manufacturing products by many industries including textiles.  It is ubiquitous in nature and has been known for a long time to be a sensitizer.  In the textile industry, formaldehyde is used in very small quantities used in wet processing to create durable press (DP) properties in textile fabrics.   

Health Concerns:

The use of formaldehyde in textiles and apparel has been a growing concern of American consumers as the chemical is classified as a possible carcinogen. One study found that when mice were exposed to high levels of formaldehyde, over long periods of time, the mice did develop tumors (this study was conducted in the 1980’s).

U.S. Textile Industry Response to Public Concern:

In response to public concern, the U.S. textile industry invited the Consumer Product Safety Commission (CPSC) to join in a research project to determine if formaldehyde as used by the domestic textile industry could pose a health risk for consumers. The joint study was conducted by an independent research laboratory using durable press treated fabric processed by the U.S. Department of Agriculture’s textile laboratory in a way typical of commercial production.

Results of the research were evaluated and it was the consensus of all participants that formaldehyde used by the U.S. Textile Industry in very small quantities is metabolized in the skin and none was found at other sites.  It was concluded by all research participants that formaldehyde, in very small amounts, used by the U.S. Textile industry does not pose a significant health risk for consumers.

Imported Products:

It is important to note that this study addressed U.S-produced fabric only and cannot be considered indicative of formaldehyde levels on foreign finished fabrics. Unfortunately, many countries manufacture textiles and apparel with much higher levels of Formaldehyde. There is also close to zero testing of this chemical when the product enters the U.S. market. This equates to the average consumers clothing potentially having much higher levels of the chemical then what the U.S. CPSC has determined as safe for the human body.

Conclusions:

Since the concern of formaldehyde has been raised and continues to worry consumers, the U.S. textile industry has continued to find ways to reduce the levels of formaldehyde textiles. While U.S. textiles and apparel contain safe levels of formaldehyde, imported items, particularly items for babies and small children, may contain unsafe levels of this chemical due to lack of adequate testing for imported products.   

Formaldehyde is not government regulated in the U.S. and thus consumers must be, and have been the driving force in the elimination of the chemical in textiles and apparel. While the U.S. industry has listened to the American consumer, many countries continue to manufacture with unsafe levels of the chemical.

It is important for consumers to be mindful of where clothes are produced, how they are made, and what medical science and the U.S. government has determined is safe when making purchases which utilize chemicals in the manufacturing process. 

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Yarn-Forward Rule Spurs Investment in U.S. Textile Industry

WASHINGTON, D.C. – The U.S. textile industry has seen a surge in foreign direct investment over the past 8 months. No less than 8 foreign companies have made public announcements over that period to invest more than $700 million in new U.S. textile facilities and equipment. These investments are projected to provide approximately 1,900 new jobs in North Carolina, South Carolina, Georgia, and Louisiana.
 

Read More:
 

http://ncto.org/Newsroom/pr2014-0305–Yarn-ForwardRuleSpursInvestmentinUSTextileIndustry.pdf

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