NCTO Welcomes U.S.-China MOU to Terminate Chinese Export Subsidies

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2016 04 14 NCTO press statement on US China MOU to terminate Chinese export subsidies


April 14, 2016

CONTACT:  Lloyd Wood
(202) 822-8028



NCTO Welcomes U.S.-China MOU to Terminate Chinese Export Subsidies

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) applauded today’s announcement of a memorandum of understanding (MOU) between the United States and China with respect to an agreement by China to terminate export subsidies under its “Demonstration Bases-Common Services Platform”.

“We thank the Obama administration for working diligently to construct an arrangement to eliminate these subsidies which directly damage U.S. manufacturing jobs, output and investment,” said NCTO CEO & President Augustine Tantillo.

“There is no doubt that China’s rise to become the world’s largest exporter of textile and apparel products has been aided by a pervasive series of illegal state-sponsored subsidies,” Tantillo continued.

“These subsidies are clearly inconsistent with the rules of the World Trade Organization, and they are unfair to domestic textile manufacturers and the hundreds of thousands of U.S. workers they employ,” Tantillo added.

“Our companies must play by free-market rules, and it is time that Chinese textile manufacturers do the same,” Tantillo concluded.

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

  • S. employment in the textile supply chain was 579,000 in 2015.
  • The value of shipments for U.S. textiles and apparel was $76 billion last year, a nearly 14% increase since 2009.
  • S. exports of fiber, textiles and apparel are up 38% over that same time period, reaching $27.75 billion in 2015.
  • Capital expenditures for textile and apparel production totaled $2 billion in 2014, the last year for which data is available.

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