NCTO Statement on House Passage of FY 2016 National Defense Authorization Act (H.R. 1735)

NCTO Statement on House Passage of FY 2016 National Defense Authorization Act (H.R. 1735)

NCTO applauds the action taken by the House of Representatives earlier today in passing the FY 2016 National Defense Authorization Act (H.R. 1735). The Defense Authorization bill contained important language supporting the Berry Amendment authored by Congressman Jim McGovern (D-MA) (Amendment #74, part of En Bloc Amendment #5). NCTO commends Congressman McGovern for offering this amendment that ensures that a provision in Section 854 of H.R. 1735 would not seriously harm the U.S. textile, apparel, and footwear industry. Section 854 proposes to increase the Simplified Acquisition Threshold procedure (SAT) from $150,000 to $500,000 meaning that contracts falling below the SAT level would not be subject to the Berry Amendment. The McGovern amendment, however, exempted Berry contracts from this increased SAT threshold and instead mandates that the current $150,000 threshold level remain in place for all textile and apparel purchases under Berry.

Among other things, the Berry Amendment ensures that our warfighters stay protected in domestically produced personal protective equipment. The Berry Amendment has spurred substantial research, development and innovation that ensures that America’s warfighters have the most advanced and effective textile materials available. In addition, Berry helps to spur U.S. manufacturing, investment, employment, and exports. It is imperative that Congress preserve the integrity of the Berry Amendment through policies like Congressman McGovern’s amendment. Doing so will ensure the highest level of performance and safety for our U.S. military.

5/15/2015

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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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TPA Statement

TPA Statement

NCTO applauds both the Senate Finance Committee and the House Ways and Means Committee for reporting out a clean TPA bill – The Bipartisan Congressional Trade Priorities and Accountability Act of 2015. In addition, NCTO is appreciative that accompanying legislation did not include provisions damaging to domestic job growth, manufacturing, and the U.S. textile industry as a whole. NCTO encourages both the House and Senate to swiftly pass these bills without additional amendments that would adversely impact U.S. textile manufactures.

The U.S. textile and apparel industry is a strong and growing industry employing 499,500 American workers in 2014. It is critical that U.S. trade agreements are constructed so that the U.S. can compete on a level playing field and in doing so boost American exports, create jobs, and strengthen the U.S. economy. TPA legislation will ensure that the U.S. meets these goals and creates high-standard 21st century trade agreements.

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NCTO ENDORSES THE INTRODUCTION OF THE BIPARTISAN CONGRESSIONAL TRADE PRIORITIES AND ACCOUNTABILITY ACT OF 2015

FOR IMMEDIATE RELEASE
April 17, 2015

Contact: Eliza Levy
202-822-8028

NCTO ENDORSES THE INTRODUCTION OF THE BIPARTISAN CONGRESSIONAL TRADE PRIORITIES AND ACCOUNTABILITY ACT OF 2015

WASHINGTON, D.C. – The National Council of Textile Organizations (NCTO) endorses the introduction of legislation to renew Trade Promotion Authority as introduced by Senate Finance Committee Chairman Orrin Hatch (R-UT), Ranking Member Ron Wyden (D-OR) and House Ways and Means Chairman Paul Ryan (R-WI). The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015) would establish congressional negotiating objectives and consultation mechanisms involving international trade agreements currently being negotiated by the U.S. government.
“We are pleased to lend our support to this renewal of Trade Promotion Authority,” stated NCTO President Augustine Tantillo. “We look forward to working with both the Executive Branch and Congress as we advocate for trade agreements that fully incorporate the interests of U.S. textile manufacturers. It is critical that these trade agreements help to level the international playing field and boost American exports, create manufacturing jobs, and strengthen the U.S. economy.”
Among the various negotiating objectives included in the bill is textile-specific language addressing the need for fair market access in trade negotiations.
Subparagraph 2(b)(18) of the bill reads:
Textile Negotiations: The principal negotiating objectives with respect to trade in textiles and apparel are to obtain opportunities for U.S. exports of textiles and apparel in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports in U.S. markets and to achieve fairer and more open conditions of trade in textiles and apparel.

 

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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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VIETNAM TEXTILE AND APPAREL EXPORTS CONTINUE TO SURGE TRANS-PACIFIC PARTNERSHIP TERMS MORE CRITICAL THAN EVER

VIETNAM TEXTILE AND APPAREL EXPORTS CONTINUE TO SURGE

TRANS-PACIFIC PARTNERSHIP TERMS MORE CRITICAL THAN EVER

FOR IMMEDIATE RELEASE

JULY 10, 2014

WASHINGTON, D.C. — According to new U.S. government data, Vietnam’s textile and apparel exports to the U.S. have continued to surge in 2014. Vietnam’s apparel sector is also positioned to gain additional advantages under a proposed new free trade agreement that will bolster their ability to penetrate the U.S. market.

In a year-over-year comparison, the top apparel suppliers to the U.S. showed a decrease in exports for the first five months of 2014, with the exception of Vietnam, according to recently released Commerce Department data.  Vietnam’s meteoric rise now ranks it as the second largest supplier of textiles and apparel to the U.S. market. Since 2007, Vietnam’s total textile and apparel exports to the U.S. have doubled. Vietnam is currently responsible for 11.5% of all U.S. apparel imports.

“Vietnam has become a dominant player in the U.S. textile and apparel market, demonstrating tremendous export growth without any free trade agreement preferences,” said Auggie Tantillo, President and CEO of NCTO. “Vietnam’s export surge necessitates the need for a well-crafted and balanced Trans-Pacific Partnership agreement. The terms of this agreement are absolutely critical to the stability of the U.S. textile sector and the entire textile and apparel production chain throughout the Western Hemisphere.”

“It is critical that the U.S. mitigates this risk by adopting fair and reasonable textile rules in the Trans-Pacific Partnership,” Tantillo continued. “Any final TPP must contain provisions that have been the foundation of U.S. trade agreements over the past 25 years, specifically fair rules of origin, common sense market access rules, and strong customs enforcement provisions.”

U.S. textile and apparel imports from Vietnam have grown from $49 million in 2001 to $8.8 billion in 2013.  The country’s annual export growth has routinely topped 15%. Vietnam stands to gain even greater access to the U.S. market upon conclusion of the TPP agreement and any preferential duty treatment the agreement affords.

According to U.S. government data for 2014, the U.S. imported $3.8 billion worth of textiles and apparel from Vietnam from January-May, a 14% increase over shipments during the same five month period in 2013.  Year-to-date, Vietnamese apparel exports to the U.S. have seen large increases in categories important to U.S. and Western Hemisphere textile and apparel producers, including:

  • Women’s/Girls’ Knit Cotton Blouses up 12.4% to $465 million
  • Men’s/Boys’ Woven Cotton Shirts up 18.5% to $92 million
  • Men’s/Boys’ Cotton Trousers up 16.5% to $177 million
  • Women’s/Girls’ Cotton Trousers up 7.9% to $359 million
  • Cotton Underwear up 10.0% to $157 million
  • Man Made Fiber Women’s/Girls’ Coats up 24.3% to $106 million
  • Man Made Fiber Dresses up 22.3% to $243 million
  • Man Made Fiber Men’s/Boys’ Knit Shirts up 20.5% to $164 million
  • Man Made Fiber Men’s/Boys’ Trousers up 15% to $170 million
  • Man Made Fiber Women’s/Girls’ Trousers up 35.9% to $183 million

Contact: Eliza Levy – elevy@ncto.org

 

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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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