Washington DC) The Board of Directors
of the National Council of Textile Organizations
voted unanimously today to support the Colombia
and Peru Free Trade Agreements.
Cass Johnson, President of NCTO,
commented: By including a strict yarn
forward rule of origin, no loopholes for Asian
products and strong customs enforcement, the
Administration has negotiated two FTAs that will help the U.S.
textile industry and its workers compete in world
markets. Colombia and Peru represent
important and growing export markets for U.S.
textile products, totaling nearly $200 million a
year. These FTAs
are essential if the Peru and Columbia markets are
to continue to grow and we urge Congress to
quickly pass implementing legislation for these
agreements.
Johnson added, At $16 billion a year
in exports, the U.S. textile industry is the third
largest exporter of textile products in the world.
These exports depend on trade agreements like the
Colombia and Peru FTAs
which ensure that FTA partners, not Asian
exporters, are the true beneficiaries of these
agreements. As the unanimous NCTO vote
indicates, the textile provisions of these
agreements represent a template for future trade
agreements which can garner wide industry
support. When trade agreements benefit
U.S. textile workers and companies, the industry
will back them
enthusiastically.
For the Colombia and Peru FTAs to be effective,
however, there must be no loss in benefits in the
transition from the current trade preference
program (the Andean Trade Promotion and Drug
Eradication Act, or ATPDEA). The ATPDEA is
scheduled to expire at the end of this year and we
strongly urge Congress to extend these trade
preference benefits until the new FTAs can take
effect. Congress must prevent the
mistakes made during the CAFTA agreement when a
staggered implementation caused substantial
business to be lost to Asia because duty benefits
for the region were
suspended.
Johnson concluded, The Peru and
Columbia FTAs are key
components in making the Western Hemisphere a
competitive alternative to Asia. With 2.2
million textile and apparel workers in the NAFTA,
CAFTA and Andean region, textile producers in the
United States and apparel manufacturers in the
larger region have integrated their production
lines. These FTAs
will create the necessary predictability and
stability that is needed to help ensure this
region remains
viable.
Key
Facts about U.S. Textiles
One
of the largest manufacturing employers in the
United States, the overall textile sector employs
nearly one million workers (909,000).
Textile mills alone employ 383,000 workers.
The
3rd largest exporter of textile products in the
world more than $16 billion in 2005.
Two-thirds
of U.S. textile exports go to developing
countries. The U.S. textile industry exports
to more than 50 countries, with 20 countries
buying more than $100 million a year.
Supplies
more than 8,000 different textile products a year
to the U.S. military.
U.S.
textile shipments totaled $75 billion last year.
Invested
more than $33 billion in new plants and equipment
over the last 10 years.
Has
increased productivity by 51 percent over the last
10 years and ranks second among all industrial
sectors in productivity increases.
Textile
workers earn 60% more than retail workers ($516 a
week vs. $245) and get health care and pension
benefits.
