Domestic Textile Groups Tell Biden Administration Penalty Tariffs Counteract China’s Unfair Trade Advantage & Give American Producers a Chance...

WASHINGTON –The Biden administration’s Section 301 penalty tariffs on finished textiles and apparel counteract China’s unfair trade advantages and give U.S. manufactures a chance to compete, two key American textile manufacturing groups told the Biden administration today. Removing tariffs, the associations said, would reward China, put U.S. manufacturers at a competitive disadvantage and do nothing to reduce inflation.

In a formal submission to the U.S. Trade Representative’s (USTR) office, which is conducting a four-year statutory review of the tariffs, the associations, representing the entirety of the U.S. textile production chain, expressed strong support for the continuation of current Section 301 penalty tariffs on finished textiles and apparel imports from China and outlined the effectiveness of U.S. tariff actions.

“In some cases, such as on finished apparel, the tariffs have worked to partially offset and counteract China’s unfair trade advantages,” the groups said. “The tariffs on finished textile and apparel items are giving U.S. manufacturers the chance to compete, and we are seeing encouraging investment and growth in moving some production and souring from China back to the Western Hemisphere.”

“The CAFTA-DR [Dominican Republic-Central America Free Trade Agreement] region has seen more than $1 billion in new textile and apparel investment this year, for example, which is historic and due to the textile and apparel rules negotiated under the agreement and sourcing shifts from China,” they added. “This investment and growing U.S. imports from the Western Hemisphere is attributable in part to the 301 tariffs on finished apparel.  The tariffs on finished items in our sector are broadly supported by textile/apparel producers in the hemispheric co-production chain, and it is essential that they remain in place, absent China reforming its practices.”

The submission was filed by the National Council of Textile Organizations (NCTO) and the U.S. Industrial and Narrow Fabrics Institute (USINFI).

The groups have long advocated for a fair, transparent process to remove tariffs on textile machinery, certain chemicals and dyes and limited textile inputs that cannot be sourced domestically to help U.S. manufacturers compete against China.

They also stressed that lifting the tariffs on finished textiles and apparel products from China “will solidify their global dominance in this sector for generations to come and reward their abusive behaviors, exacerbate the migration crisis, hurt domestic manufacturers and workers, undermine our ability to recalibrate essential PPE supply chains, and blunt the positive supply chains shifts and investments in the Western Hemisphere that are happening.” They added it would “do nothing to solve the inflation crisis facing U.S. consumers and manufacturers right now.”

See the full submission here.

The National Council of Textile Organizations (NCTO) is a not-for-profit trade association established to represent the entire spectrum of the United States textile sector, from fibers to yarns to fabrics to finished products, as well as suppliers of numerous support services such as trucking, banking, chemicals, and other such sectors that have a stake in the prosperity and survival of the U.S. textile sector.  U.S. textile and apparel manufacturers produced $65.2 billion in output in 2021, and our sector’s supply chain employs 534,000 workers from fiber to finished sewn products.  NCTO’s headquarters are in Washington, DC.  www.ncto.org  

The United States Industrial and Narrow Fabrics Institute (USINFI)  Member companies manufacture highly-specialized textile products, advanced materials, and components used to support a variety of high-value-added and sophisticated industries.  These include the aerospace, automotive, construction, marine, medical, military, and safety/protective gear sectors among others.  USINFI currently has over 90 member companies, and its headquarters are in Roseville, MN. https://usinfi.textiles.org/

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

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.684.3091

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Senate Passes Bill Aimed at Expanding Government Procurement of American-Made Essential Products as Part of the NDAA Conference Report

WASHINGTON DC—The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber though finished sewn products, commends the Senate for passing the Fiscal Year 2023 National Defense Authorization Act (NDAA), which includes a key provision aimed at spurring more government procurement of domestically produced essential products, providing a significant benefit to the U.S. textile industry.

“We applaud the Senate for getting the NDAA across the finish line today, and we are pleased the legislation will now go to President Biden for his signature,” said NCTO President and CEO Kim Glas. “The underlying NDAA conference report includes a critical bill known as the Homeland Procurement Reform (HOPR) Act, which establishes specific criteria that the Department of Homeland Security (DHS) must meet to procure more domestically manufactured uniforms, footwear, and related critical items by DHS agencies.”

“NCTO sincerely thanks the Warrior Protection and Readiness Coalition (WPRC) and the coalition of industry and labor groups who helped secure inclusion of the HOPR Act in the NDAA,” Glas said. “This common-sense bill will ensure that key divisions of the DHS can procure American-made critical uniforms and protective equipment to support the execution and enforcement of their missions.”

Glas added, “The importance of the domestic textile industry and a warm industrial base was heightened during the pandemic when the industry pivoted overnight to retool production lines to address severe shortages of lifesaving products. That experience demonstrated how imperative it is to build and expand a permanent domestic manufacturing base for our country’s health and national security. The HOPR Act is poised to provide a greatly needed demand signal to the U.S. manufacturing industry for expanded government procurement of American-made essential items, ranging from uniforms to footwear and body armor and helmets. It is a step in the right direction to further safeguard our national security from unreliable foreign supply chains in China and other countries for essential materials.”

Once signed into law, the new HOPR provisions will go into effect in 180 days.

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

  • U.S. employment in the textile supply chain was 534,000 in 2021.
  • The value of shipments for U.S. textiles and apparel was $65.2 billion in 2021.
  • U.S. exports of fiber, textiles and apparel were $28.4 billion in 2021.
  • Capital expenditures for textiles and apparel production totaled $1.85 billion in 2020, the last year for which data is available.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.684.3091

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Barnet Hosts Congressman Greg Murphy (R-N.C.); Highlights the Importance of Supporting Policies that Bolster the Competitiveness of the U.S....

WASHINGTON, DC – Congressman Greg Murphy (R-N.C.) met with executives at William Barnet & Son LLC (Barnet) and toured a facility in Kinston, N.C. today, where the company’s innovation, advances in sustainable practices and its important contribution to the North Carolina economy were on full display.

Congressman Murphy’s visit is critical and comes at a pivotal time for the U.S. textile supply chain, which produced $65.2 billion in output in 2021 and employed nearly 535,000 workers. Barnet is part of the broader industry that is a major factor in high-tech and sustainable innovation in the production of everything from heart valves and stents to aircraft bodies and advanced body armor.

Barnet is a global manufacturing, recycling, and trading company, specializing in a wide range of fibers, polymers and yarns. Founded in Albany, N.Y. in 1898 by William Barnet, the company has been dedicated to a vision of being the world’s most respected, creative, versatile and sustainable solution provider to its customers and suppliers. The company currently employs over 400 employees worldwide.

During the discussion with Congressman Murphy, Barnet executives discussed several policy priorities that have far-reaching implications for North Carolina and the entire U.S. textile industry.

They also outlined the importance of policies aimed at bolstering onshoring and nearshoring production, closing a legal loophole in U.S. trade law that continues to undermine American manufacturing and gives China an advantage, and U.S. trade policy on China.

“We are honored to have hosted Dr. Murphy at our Kinston facility today,” said Chuck Hall, president of Barnet. “The opportunity to discuss important policies that impact not only our everyday business operations but the entire industry’s operations is invaluable. It is critical that U.S. trade policy centers around keeping the industry competitive. In particular, we discussed the need to maintain China 301 penalty tariffs, to fix a loophole in U.S. trade law known as the de minimis mechanism, which allows a package of goods valued at $800 or less per person to come into the country duty free every day and gives China backdoor access to the U.S. market, and to find a better process for renewing the Miscellaneous Tariff Bill (MTB) which allows U.S. manufacturers duty-free access to raw materials that are no longer produced within our borders. We look forward to continuing to the work with the congressman on policies that help drive onshoring and nearshoring to the U.S. and the Western Hemisphere and those that support strong government procurement and American-made products.”

“It was wonderful to meet with Barnet’s officials and tour their impressive textile facility today. North Carolina’s textile industry is a huge driver for our economy, directly employing nearly 40,000 workers and generating over $2.7 billion in textile-related exports,” said Rep. Greg Murphy, M.D. “I am grateful to the industry leaders who took the time to discuss how we can expand this great industry, grow our state’s economy, and protect domestic manufacturing.”

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

  • U.S. employment in the textile supply chain was 534,000 in 2021.
  • The value of shipments for U.S. textiles and apparel was $65.2 billion in 2021.
  • U.S. exports of fiber, textiles and apparel were $28.4 billion in 2021.
  • Capital expenditures for textiles and apparel production totaled $1.85 billion in 2020, the last year for which data is available.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.684.3091


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Textile Executives Highlight Importance of Industry & Urge Support of Policies Bolstering U.S. Competitiveness at Roundtable with Rep. Greg...

WASHINGTON, DC – Textile executives spanning the fiber, yarn, fabric, and finished product textile industries participated in a roundtable discussion with Rep. Greg Murphy (R-NC) today. During the roundtable executives showcased the industry’s innovation, advances in sustainable practices and its important contribution to the North Carolina and the U.S. economy, while raising several priority issues in Washington that have far-reaching implications for North Carolina and the entire U.S. textile industry.

The roundtable discussion, hosted by the National Council of Textile Organizations (NCTO), was held at East Carolina University in Greenville, North Carolina.

North Carolina is the second largest state employer of textile-related jobs with over 36,000 workers, and those jobs play a vital role in supporting 108,000 additional jobs throughout the state. The state’s $2.7 billion in textile-related exports leads the nation.

During the roundtable, executives outlined critical policies, such as the importance of maintaining the yarn forward rules of origin in the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and other trade agreements, advancing the Miscellaneous Tariff Bill and its importance to domestic manufacturers, upholding buy American and Berry Amendment government procurement policies, ensuring the administration is implementing the “Make PPE in America Act” as intended, and the need to address larger systemic trade issues, particularly the use of forced labor, with China.

Congressman Murphy’s visit is critical and comes at a pivotal time for the U.S. textile supply chain, which produced $65.2 billion in output in 2021 and employed nearly 535,000 workers. The industry has been at the forefront of domestic manufacturing of over 1 billion personal protective equipment (PPE) items during the COVID-19 pandemic.

“North Carolina’s textile industry is a huge driver for our economy, directly employing nearly 40,000 workers and generating over $2.7 billion in textile-related exports,” said Rep. Murphy, M.D. “I was grateful to hear from so many outstanding industry leaders during our roundtable today, and I am confident that we have the tools needed to bolster this great industry in our state. As the proud representative for North Carolina on the Ways and Means Committee, it’s an honor to work alongside NCTO to promote American jobs, grow our state economy, and protect domestic manufacturing.”

NCTO President and CEO Kim Glas said, “We sincerely appreciate Rep. Murphy’s participation in today’s industry roundtable, where he heard directly from textile executives with operations in North Carolina about opportunities and challenges confronting the industry. North Carolina has a vibrant textile industry, which employs technologically advanced and highly innovative operations, to produce a vast array of products, including high-tech components for everything from heart valves and stents to aircraft bodies and advanced body armor for our warfighters to critical PPE for the government and private sector. The importance of the U.S. textile industry to the U.S. economy and job growth cannot be overstated. That is why it is imperative that we have sound trade and government procurement policies that not only supports domestic production but also bolster our integrated coproduction chain with our Western Hemisphere trading partners. We look forward to continuing to work with Congressman Murphy on policies that: spur investment in North Carolina, the United States and the entire hemisphere; support strong government procurement policies centered around American-made products; and lead to strong enforcement of illegal trade practices that continue to give China and other countries backdoor to the U.S. market.”

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

  • U.S. employment in the textile supply chain was 534,000 in 2021.
  • The value of shipments for U.S. textiles and apparel was $65.2 billion in 2021.
  • U.S. exports of fiber, textiles and apparel were $28.4 billion in 2021.
  • Capital expenditures for textiles and apparel production totaled $1.85 billion in 2020, the last year for which data is available.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.684.3091

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U.S. Educational Institutions Partner with Honduran University to Educate and Train Thousands of Students for Textile Jobs as Nearshoring...

WASHINGTON – North Carolina educational institutions are joining forces with a key Honduran university to educate and train thousands of students for the next generation textile workforce to meet a rising tide of nearshoring and onshoring in Honduras, Central America and the United States.

With backing from the U.S. Department of State, North Carolina State University, Gaston College, and Catawba Valley Community College signed a Memorandum of Understanding (MOU) with Honduran-based Central American Technological University (UNITEC) today at a signing ceremony at Gaston College in Dallas, N.C.

High-level U.S. and Honduran government officials, including: Jose W. Fernandez, Under Secretary of State for Economic Growth, Energy and the Environment; Jennifer Knight, Deputy Assistant Secretary for Textiles, Consumer Goods and Materials at the U.S. Department of Commerce; and Hector Zelaya, private secretary to Honduran President Xiomara Castro, participated in a roundtable discussion with textile executives and educational leaders as well as today’s MOU signing ceremony.

The U.S. Department of State issued a statement of public support today for the MOU and the unique collaboration between the U.S. and Honduran institutions.

The groundbreaking initiative will launch a series of educational workforce development programs, ranging from training and certificate programs to undergraduate and graduate degrees, in textile-related areas of study.

The partnership comes at a defining moment for the U.S., Honduras and Central America, which are seeing historical levels of investment in textile and apparel production stemming from a global supply chain crisis that has driven a significant shift in sourcing out of Asia to the U.S. and the region. Nearly $1 billion of historic textile and apparel investment is anticipated in the U.S. and Central America this year alone. And this partnership also creates an educational pathway to economic opportunity in Honduras and the region that not only creates a skilled and resilient workforce but can also help to address the root causes of irregular migration.

Current growth projections indicate a need for more than 10,000 new skilled workers in the textile industry in Honduras alone over the next five years. In order to meet these needs, educational programming is needed at all levels.

The U.S. and this region are inextricably linked through a textile and apparel co-production chain under the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) that has generated $12.6 billion in annual two-way trade in the sector and supports 1 million workers in the U.S. and the region.

North Carolina plays a central role in this co-production chain. It is the second largest state for textile employment nationally with over 36,000 workers, and the state’s $2.7 billion in textile-related exports leads the nation. The Northern Triangle, including Honduras, is a major export destination for U.S. yarns and fabrics that come back as finished items under the U.S.-CAFTA-DR trade agreement.

In addition to participating in the signing ceremony and the earlier industry roundtable, Under Secretary Fernandez, Deputy Assistant Secretary Knight and Secretary Zelaya toured two of Gildan’s yarn-spinning facilities in Salisbury, N.C., a leading apparel manufacturer that has invested over $700 million since 2013 across its network of yarn-spinning facilities in the United States.

“The MOU signed today is a win on so many levels. Firstly, it is a win for U.S. textile manufacturers who operate in both the U.S. and Central America as they build more resilient and economically and environmentally sustainable supply chains. Secondly, it’s a win for the Wilson College of Textiles and NC State in advancing its land-grant mission to support economic prosperity and provide transformative opportunities for people of all ages in North Carolina and beyond in collaboration with our community college partners and now UNITEC in Honduras,” said David Hinks, Dean of the Wilson College of Textiles, North Carolina State University. “Together we will train the next generation of textile workers, leaders and academics in this critical production chain. These workforce programs will have a ripple effect throughout Central America, the region and the United States, spurring job growth and more investment, and not just in textiles and apparel. Hundreds of our industry partners that work with our college closely are looking to re-engineer their supply chains out of China to the United States and Central America. This new partnership will provide a near seamless educational and training pathway to building an even stronger textile and apparel co-production chain between the U.S. and CAFTA-DR countries, which collectively supports 1.1 million workers.”

“This is an incredible opportunity to build a partnership and bridge between U.S. educational institutions and UNITEC. Through this collaboration, we will develop education and workforce training programs that will support the vibrant textile and apparel co-production chain between Honduras and the United States,” said Dr. John Hauser, President of Gaston College. “The time is now to invest in the future of the textile and apparel industries, and Gaston College and Catawba Valley Community College look forward to playing a key role in training textile operators to support the impressive growth and investment in this critical sector.”

“By signing this academic MOU, we bring education and industry together between two economies with a strong history of success in the textile industry. This is a great example of creating valuable partnerships aimed at developing the workforce to be more competitive to operate in a global market,” said Dr. Marlon Brevé-Reyes, UNITEC Rector.

Under Secretary Fernandez said, “The United States is very supportive of the academic partnership announced here today which will lead to increased opportunities in co-production and will benefit both the United States and Central America. Investment in workforce and adherence to strong labor standards and good labor practices are essential to creating sustainable and resilient supply chains.”

“President Xiomara Castro welcomes today’s announcement and is actively engaged in creating a good investment climate in Honduras. The MOU signed today will help provide economic opportunities to textile workers in our country and strengthen our ties,” said Secretary Zelaya.

“As we work to create more sustainable and resilient global supply chains, this sector is in a window of opportunity,” said Deputy Assistant Secretary Knight. “The innovations that U.S. and Central American textile and apparel companies create to reduce environmental impact and increase transparency across their supply chains can set them apart from global competitors, and today’s workforce development initiative is a key element in turning this vision into reality.”

National Council of Textile Organizations (NCTO) President and CEO Kim Glas stated, “This partnership demonstrates the critical need for education and training programs for the next generation of academics and textile employees to meet head-on the global sourcing shift that has been driving production out of Asia to Honduras, the entire CAFTA-DR region and the United States. Collaboration on this scale will support our critical co-production chain in the CAFTA-DR region and further enhance investments for the years to come. U.S. and Honduran government support for this private sector collaboration is crucial. We sincerely appreciate the statement of support issued by the State Department, as well as the participation in today’s events by Under Secretary Fernandez, Deputy Assistant Secretary Knight and Secretary Zelaya. It’s important these efforts are supported and funded in order to help expand growth opportunities in the U.S. and Central American textile and apparel production efforts. This is an exciting time for our industry.”

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

  • U.S. employment in the textile supply chain was 534,000 in 2021.
  • The value of shipments for U.S. textiles and apparel was $65.2 billion in 2021.
  • U.S. exports of fiber, textiles and apparel were $28.4 billion in 2021.
  • Capital expenditures for textiles and apparel production totaled $1.85 billion in 2020, the last year for which data is available.

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PRESS CONTACTS:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

Mary Cullen

Project Specialist

NP Strategy

4141 Parklake Avenue, Suite 200, Raleigh, NC 27612

T: 919.653.7814, C: 630.272.5691

mary@npstrategy.com

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North Carolina Textile Executives Highlight Importance of Industry & Policies Supporting U.S. Competitiveness at Roundtable with Rep. Kathy Manning...

August 9, 2022

WASHINGTON –North Carolina textile executives spanning the fiber, yarn, fabric, and finished product textile industries participated in a roundtable discussion with Rep. Kathy Manning (D-NC) today, at which they discussed the innovative achievements and competitiveness of the domestic industry and outlined priority issues in Washington that impact their daily operations.

The roundtable discussion, hosted by Unifi Inc. and sponsored by the National Council of Textile Organizations (NCTO), was held at Unifi’s headquarters in Greensboro, North Carolina.

North Carolina is the second largest state employer of textile-related jobs, employing more than 30,000 jobs in 2021, according to U.S. government data. The state’s $2.7 billion in textile-related exports leads the nation, according to U.S. government data.

Congresswoman Manning’s visit comes at a pivotal time for the U.S. textile supply chain, which produced $65.2 billion in output in 2021 and employed nearly 535,000 workers. The industry has been at the forefront of domestic manufacturing of over 1 billion personal protective equipment (PPE) items during the COVID-19 pandemic..

During the roundtable, North Carolina executives showcased the industry’s important contribution to the state and the U.S. economy as well as its advanced sustainability initiatives, while outlining critical policies, such as the importance of Buy American and Berry Amendment government procurement policies, maintaining strong rules of origins in free trade agreements, supporting a domestic PPE production sector, and the need to address larger systemic trade issues with China.

“Unifi was thrilled to host Representative Manning with other NCTO leaders today at our Greensboro Headquarters.  We appreciate the time and consideration she gives to the critical issues in Washington that affect our workers and investment here in North Carolina and the entire region.” said Eddie Ingle, Chief Executive Officer of Unifi.

“In North Carolina, the textile industry is woven into the very fabric of our state and economy, with more than 33,000 workers employed in over 600 textile manufacturing facilities across the state. In Congress, I am committed to supporting our homegrown industry by making PPE in America, protecting the yarn forward rule of origin in our trade agreements, and cracking down on China’s unfair trade practices. I am thrilled to engage with industry leaders in my district, as we discuss ways to grow the U.S. textile industry and the critical role that textile manufacturers play in our local, state, and national economy,” said Congresswoman Kathy Manning (NC-06).

NCTO President and CEO Kim Glas said, “We deeply appreciate Congresswoman Manning’s participation in today’s industry roundtable where she engaged in substantive discussions around policies that help bolster U.S. manufacturing, while hearing directly from executives about the challenges confronting our industry. The diverse U.S. textile industry is technically advanced and highly innovative and provides jobs to local communities in North Carolina and across the country. It is imperative that we have sound trade and government procurement policies that help the U.S. industry continue to grow jobs and contribute to the overall U.S. economy. We look forward to continuing to work with the congresswoman on policies that will help drive more onshoring and nearshoring to the U.S. and the Western Hemisphere, support strong government procurement policies centered around American-made products and lead to strong enforcement of illegal trade practices.”

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

  • U.S. employment in the textile supply chain was 534,000 in 2021.
  • The value of shipments for U.S. textiles and apparel was $65.2 billion in 2021.
  • U.S. exports of fiber, textiles and apparel were $28.4 billion in 2021.
  • Capital expenditures for textiles and apparel production totaled $1.85 billion in 2020, the last year for which data is available.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.684.3091

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U.S. Congressional Delegation Visiting Textile & Apparel Plants in Honduras Sees First-Hand New Investment, Expansion in Region

August 5, 2022

WASHINGTON – A U.S. congressional delegation visited textile and apparel facilities in an industrial park in Choloma, Honduras today.  They witnessed first-hand the significant investments, expansions, and job creation in the country’s textile and apparel sector and the USA fibers and yarns utilized in the production process.

The delegation, led by Congressman Lou Correa (D-CA), chairman of the House Homeland Security Committee’s Subcommittee on Oversight, Management and Accountability toured several companies with facilities in Honduras, including Parkdale Mills, Elcatex, and SanMar, all of which are expanding their footprint in the region.

Reps. John Katko (R-NY), ranking member of the House Homeland Security Committee, and Tony Gonzales (R-TX) also joined the delegation, which included U.S. Ambassador to the Republic of Honduras Laura Dogu, U.S. military officials, U.S. embassy officials and U.S. and Honduran industry executives.

These new investments in the industrial park were recently highlighted by Vice President Kamala Harris who is calling on private industry to promote economic opportunity in the region to address the root causes of migration.

In addition, this delegation is meeting with other top-level U.S. and Honduran textile and apparel executives to discuss this critically important co-production chain.

The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) has spawned a textile and apparel coproduction chain, resulting in $12.6 billion in two-way trade and hundreds of millions of dollars in investments in the region. Nearly $1 billion of historic textile and apparel investment is anticipated this year alone.

Rep. Correa said, “Today’s visit to Honduras’s textile and apparel plants highlights the region’s substantial progress and growth in job creation. Seeing first-hand the significant investments, expansions and job creation that have taken place in the Honduras textiles and apparel sector demonstrates the region’s commitment to supporting the region’s long-term development, which includes measures to foster economic opportunities. I alongside with my colleagues will continue to collaborate with Central American countries to ensure that we are expanding job creation and working with our allies to continue to promote stability and progress in the Northern Triangle.”

“I am extremely grateful to our hosts for allowing us to visit these facilities firsthand and better understand economic development in the region. Importantly, these investments will improve supply chain security by advancing nearshoring and onshoring of textiles and apparel that I hope to see replicated in other industries critical to the U.S. economy,” said Rep. Katko. “I look forward to sharing what I have learned with my colleagues in Washington so we can continue to build on this progress.”

NCTO President and CEO Kim Glas said, “We deeply appreciate this visit to the Honduran textile and apparel industry by this congressional leadership team, our Ambassador, and government officials. The critical importance of the U.S.-CAFTA-DR to the region and the significant investments that is being made by this sector cannot be overstated. This agreement and the textile rules included has driven massive investment and support over 530,000 jobs in the region and 500,000 in Central America.  This is a pivotal moment for the coproduction chain between the U.S. and regional textile and apparel industries, in light of onshoring and nearshoring trends. We look forward to working with Congress, the administration, and our regional partners on fostering event stronger ties and growth in the hemisphere.”

###

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

  • U.S. employment in the textile supply chain was 534,000 in 2021.
  • The value of shipments for U.S. textiles and apparel was $65.2 billion in 2021.
  • U.S. exports of fiber, textiles and apparel were $28.4 billion in 2021.
  • Capital expenditures for textiles and apparel production totaled $1.85 billion in 2020, the last year for which data is available.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.684.3091

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China Penalty Tariffs on Finished Textiles & Apparel Give U.S. Companies a Chance to Compete and are a Powerful...

WASHINGTON—Section 301 penalty tariffs on finished Chinese textile and apparel imports give American manufacturers a chance to compete and provide trade officials with an essential trade negotiation tool, the National Council of Textile Organizations (NCTO) told a key government panel today in a formal written submission. Removing them, the association said, would reward China, put U.S. manufacturers at a competitive disadvantage and do nothing to reduce inflation.

Those were among the key points outlined by NCTO President and CEO Kim Glas in a written testimony submitted to the U.S. International Trade Commission during three days of hearings on the economic impact of Section 301 China tariffs and Section 232 steel tariffs on U.S. industries.

The 301 penalty tariffs should be maintained “absent substantive improvements in China’s pervasive, predatory trade practices,” Glas said in her testimony.  China’s illegal actions “have put U.S. companies at a serious disadvantage, and tariffs give American manufacturers a chance to compete.” Glas noted that U.S. trade officials have “stressed that the penalty tariffs also create leverage and are a ‘significant tool’ in ongoing negotiations with China.”

While some advocates for lifting the tariffs point to concerns about inflation, Glas said, “canceling these penalty duties would do little to ease Americans’ inflationary pains.” She also noted that “apparel prices out of China continue to hit rock bottom even with the Section 301 tariffs in place. As detailed in an economic study recently released by Werner International, U.S. import prices for apparel from China have dropped 25 percent since 2019 and 50 percent since 2011.”

Glas also warned that lifting the tariffs would have “a substantial negative ripple effect” on U.S. free-trade agreements, including undermining those with Western Hemisphere partners that have established shorter coproduction supply chains and serve other U.S. and regional interests.

The Section 301 tariffs were first imposed in 2018 in response to China’s persistent violations of intellectual property rules. By law, they are now under review.

NCTO represents the full spectrum of the U.S. textile industry, from fibers to finished sewn products.

See the full written submission here.

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

  • U.S. employment in the textile supply chain was 534,000 in 2021.
  • The value of shipments for U.S. textiles and apparel was $65.2 billion in 2021.
  • U.S. exports of fiber, textiles and apparel were $28.4 billion in 2021.
  • Capital expenditures for textiles and apparel production totaled $1.85 billion in 2020, the last year for which data is available.

Download Release

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.684.3091

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NCTO Announces Winner of the 2022 Paul T. O’Day Memorial Scholarship

WASHINGTON, DC – The National Council of Textile Organization’s (NCTO) Fiber Council announces Ms. Abigail McBee, of Gaffney, SC as the recipient of the 2022 Paul T. O’Day Scholarship Award. She is the daughter of Emily and Douglas McBee, who works for Auriga Polymers/Indorama Ventures in Spartanburg, SC.

NCTO Chairman David Poston, President of Palmetto Synthetics LLC, commented, “We are pleased to recognize Ms. McBee’s exceptional record of academic achievements with her selection as the 2022 recipient of the Paul T. O’Day Memorial Scholarship. All of us on the Fiber Council congratulate Ms. McBee and wish her continued success in her academic career.”

The scholarship program was created in 2014 in honor of Paul T. O’Day who served as President of the American Fiber Manufacturers Association (AFMA) for more than three decades. The Association merged with the National Council of Textile Organizations in April 2018, and NCTO’s Fiber Council now administers the scholarship program. Recipients receive a $5,000 award each year, totaling $20,000 for four years of study. Sons or daughters of NCTO’s Fiber Council member company employees are eligible to apply.

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

  • U.S. employment in the textile supply chain was 534,000 in 2021.
  • The value of shipments for U.S. textiles and apparel was $65.2 billion in 2021.
  • U.S. exports of fiber, textiles and apparel were $28.4 billion in 2021.
  • Capital expenditures for textiles and apparel production totaled $1.85 billion in 2020, the last year for which data is available.

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CONTACT: Robin Haynes

(704) 824-3522

www.ncto.org

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Textile Groups Urge U.S. to Maintain Penalty Tariffs on Finished Products; Lifting Tariffs Would Cement China’s Dominance of Global...

WASHINGTON – The Biden administration should maintain Section 301 penalty tariffs on finished textiles and apparel or risk reversing once-in-a-lifetime nearshoring trends and undermining critical investments and jobs in the U.S. and Western Hemisphere, three key American textile manufacturing groups said today.

In a formal submission to the U.S. Trade Representative’s (USTR) office, which is conducting a four-year statutory review of the tariffs, the associations expressed strong support for the continuation of penalty tariffs on imports from China and warned of the consequences associated with removing the tariffs.

“A key aspect of [the Biden administration’s trade] policy is the need to maintain Section 301 tariffs, absent substantive improvements in China’s pervasive, predatory trade practices,” the groups said. Lifting the tariffs “would also do nothing to achieve the administration’s goal of easing inflationary pressures, as apparel prices out of China continue to hit rock bottom even with the Section 301 tariffs,” they noted.

The submission was filed by the National Council of Textile Organizations (NCTO) and the Narrow Fabrics Institute (NFI) and Industrial Fabrics Institute (USIFI) – both divisions of the Advanced Textiles Association (ATA).  The associations represent the entirety of the U.S. textile production chain.

“For decades, China’s illegal actions have undermined virtually every domestic manufacturing sector and contributed to the direct loss of millions of U.S. jobs. These devastating state-sponsored practices include intellectual property theft as well as pervasive state-ownership of manufacturing, industrial subsidies, and abhorrent labor and human rights abuses in the Xinjiang region,” they noted. “Cancelling these tariffs would create further unhealthy dependence on Chinese supply chains and embolden future systematic trade abuses as bad actors know that the U.S. will not hold them accountable.”

The tariffs were imposed on China beginning in 2018 in response to China’s continuing IP and related trade violations. China has since failed to comply with an agreement it reached with the United States in 2020.

See the full submission here.

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CONTACT:

Kristi Ellis

National Council of Textile Organizations

kellis@ncto.org |  202.684.3091

Janelle Buerkley

U.S. Industrial Fabrics Institute/Narrow Fabrics Institute

Janelle.buerkley@textiles.org | 651.225.6948

The National Council of Textile Organizations (NCTO) is a not-for-profit trade association established to represent the entire spectrum of the United States textile sector, from fibers to yarns to fabrics to finished products, as well as suppliers of numerous support services such as trucking, banking, chemicals, and other such sectors that have a stake in the prosperity and survival of the U.S. textile sector.  U.S. textile and apparel manufacturers produced $65.2 billion in output in 2021, and our sector’s supply chain employs 534,000 workers from fiber to finished sewn products.  NCTO’s headquarters are in Washington, DC.  www.ncto.org  

The Narrow Fabrics Institute (NFI) is a division of the Advanced Textiles Association (ATA) formerly known as the Industrial Fabrics Association International (IFAI) whose mission is to work on common interests and issues in the narrow fabrics industry.  Narrow fabrics are defined as textiles that are no more than 12 inches (300mm) in width and are made by weaving, knitting, or braiding fibers or yarns with an edge to prevent unraveling.  The primary product areas of NFI’s member companies include automotive, military, safety, transportation, medical, and others such as aerospace, industrial, pet, recreational, and electronics.  The North America market for narrow fabrics is estimated at over $335 million in annual sales.  https://narrowfabrics.textiles.org/

The United States Industrial Fabrics Institute (USIFI) is a division of the Advanced Textiles Association (ATA), formerly known as the Industrial Fabrics Association International (IFAI).  Member companies manufacture highly-specialized textile products, advanced materials, and components used to support a variety of high-value-added and sophisticated industries.  These include the aerospace, automotive, construction, marine, medical, military, and safety/protective gear sectors among others.  USIFI currently has 50 member companies, and its headquarters are in Roseville, MN.  https://usindustrialfabrics.textiles.org/

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