From the Sector

NCTO Supports Administration’s Proposals on Economic Stimulus in Coronavirus Response; Rejects Importer Attempts to Remove China 301 Tariffs on Finished Products

The National Council of Textile Organizations (NCTO), representing the full spectrum U.S. textiles from fiber through finished sewn products, issued a statement today welcoming the Trump administration’s proposals on an economic stimulus package to gird the economy against the impact of the coronavirus outbreak. But the organization urged officials to reject any attempts by importers to remove China 301 tariffs on finished products as part of any relief package.

“The president has outlined the need for a broad economic stimulus package that would include various tax incentives to help impacted industries and workers. We support the administration’s efforts to bolster the economy as a response to the coronavirus outbreak, while opposing add-ons to any stimulus package designed to exploit the crisis,” said NCTO President and CEO Kim Glas.

As part of a Phase One deal with China, the administration reduced duties on finished apparel and textile products implemented on Sept.1 from 15 percent to 7.5 percent.

Finished apparel, home furnishings and other made-up textile goods equate to 93.5 percent of U.S. imports from China in the sector; while fiber, yarn, and fabric imports from China only represent 6.5 percent, according to government data.

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber though finished sewn products, provides initial comments on the Phase One deal on 301 tariffs reached between the United States and China today.

“We look forward to reviewing the details of the agreement as it becomes available, including the intellectual property enforcement mechanisms agreed to by both countries.  We have long supported the administration’s efforts to re-balance our trade relationship with China that has significantly eroded our U.S. manufacturing base for decades,” Kim Glas, President and CEO of the National Council of Textile Organizations said.

The proposed announcement means that 301 duties on textile inputs will remain at a 25 percent tariff. Meanwhile, penalty duties on finished apparel and textile products implemented on Sept. 1st will be reduced from 15 percent to 7.5 percent, and proposed duties on finished products set to be put in place on Dec. 15th will no longer go into effect.

“NCTO has strongly supported applying tariffs on finished products as key negotiating leverage since textile and apparel production is a key pillar of the Chinese manufacturing economy.  Finished apparel, home furnishings and other made-up textile goods equate to 93.5 percent of U.S imports from China in our sector, while fiber, yarn and fabric imports from China only represents 6.5 percent, according to government data.  Today’s announcement reduces tariffs on finished products at the same time it keeps tariffs in place on key inputs that aren’t made in the U.S. such as certain dyes, chemicals, and textile machinery. We believe a wiser approach would be to maintain penalty duties on finished Chinese products while reducing 301 duties on key inputs that are used by U.S. manufacturers. Doing so will maintain maximum leverage on China to reach a more comprehensive and enforceable intellectual property agreement, while reducing input costs for U.S. manufacturers.  As domestic textile companies fight to compete with China and their illegal trade practices, it is important that U.S. manufacturers should be the first to see penalty duties removed on inputs not made in the United States.

As we review this Phase One agreement, it is important that the administration strike the proper balance of maintaining its leverage with China by keeping duties on finished product until a final strong and enforceable deal with China is completed.  We look forward to reviewing and analyzing the deal in more detail.”

U.S. textile executives participated in a roundtable today with Representative Tom Rice (SC-07), a key member of the House Ways & Means Trade Subcommittee, at which they discussed the competitiveness of the domestic industry, outlined priority issues in Washington and explored ways to jointly push for passage of the U.S.-Mexico-Canada Agreement (USMCA).

Congressman Rice, a leader on trade and competitiveness issues that heavily impact the domestic textile industry, participated in an executive roundtable hosted by Milliken & Company at its headquarters in Spartanburg, S.C.

"Milliken is honored to host Congressman Rice today to talk about innovation, competitiveness and the importance of passing USMCA,” Jeff Price, EVP of Milliken Operations stated.  “USMCA makes several key updates to NAFTA that will enable our trilateral trade to become stronger, which benefits this key industry in South Carolina. We greatly appreciate the Congressman being here today and appreciate his leadership.”

Congressman Rice stated: “I was honored to participate in today’s roundtable with leaders in South Carolina’s textile industry to discuss the need to pass the USMCA as quickly as possible. Modernizing outdated trade agreements to reflect our 21st century economy will support American manufacturers and enhance our global competitiveness. I will bring the valuable input I received today back to Washington as I continue working to advance the USMCA and keep our economy booming.”

The National Council of Textile Organizations (NCTO) and American Apparel & Footwear Association (AAFA) sent a letter to President Donald J. Trump, opposing the proposed escalation in tariffs for all U.S. imports from Mexico. As the representatives of the apparel and textile supply chain, the organizations represent hundreds of thousands of American jobs dependent on duty-free trade in the North American region.

Signed by the heads of both organizations, the letter states: “Raising tariffs on U.S. imports from Mexico will hurt U.S. workers. Currently, hundreds of thousands of American workers are deployed in production and other key value chains that depend on the North American trade partnership with Mexico, which is the market for half of all U.S. textile exports.”

Click to read the full letter

The National Council of Textile Organizations (NCTO) held its 16th Annual Meeting March 19-21 in Washington, DC.  Elected as NCTO officers for 2019 are:

• Chairman – Leib Oehmig, CEO of Glen Raven, Inc.
• Mr. Oehmig is CEO of Glen Raven, Inc., based in Glen Raven, North Carolina.  Glen Raven is an innovative leader in textile research and development, dying, spinning, weaving and finishing, and distribution and logistics.
• Vice Chairman – David Roberts, CEO of CAP Yarns, Inc.
• Mr. Roberts is CEO of CAP Yarns, Inc., based in Clover, South Carolina.  CAP Yarns is a specialty yarn manufacturer and a leader in developing unique yarns for the knitting and weaving industry.

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

• U.S. employment in the textile supply chain was 594,147 in 2018.  
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018.  
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018.  
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

Jens D. Lukaczik ist neuer Präsident
Der Vorstand der Bremer Baumwollbörse wählte am 28. Juni anlässlich der 144. ordentlichen Generalversammlung  den 52-jährigen Jens D. Lukaczik zum neuen Präsidenten. Lukaczik ist geschäftsführender Gesellschafter der in Bremen ansässigen Cargo Control Germany GmbH & Co. KG. Zum Vizepräsidenten wurden Ernst Grimmelt (51), geschäftsführender Gesellschafter der Velener Textil GmbH in Velen, Westfalen, und Fritz A. Grobien (60), geschäftsführender Gesellschafter der Albrecht, Müller-Pearse & Co. Trade (GmbH & Co.) KG, Bremen, sowie der bisherige Präsident Henning Hammer (42), Geschäftsführer der Otto Stadtlander GmbH, Bremen, gewählt.

Anlässlich seiner Wahl betonte Präsident Lukaczik: „Die Baumwollbörse bleibt ein verlässlicher Dienstleister für ihre Mitglieder. Für die Zukunft gilt es, unsere Kommunikation nach innen und außen weiterhin zu intensivieren. In Zeiten von Fake-News und einer zunehmend emotionaleren öffentlichen Auseinandersetzung sind Kompetenz und Sachlichkeit unsere Stärken im öffentlichen Diskurs.  Das Ziel der Bremer Baumwollbörse ist es, die klaren Vorteile des natürlichen und nachhaltigen Rohstoffs Baumwolle sowohl im Bewusstsein des Konsumenten als auch in der ökologischen, sozialen und politischen Diskussion noch stärker zu positionieren.“

Während der Generalversammlung fanden auch Neuwahlen des Vorstandes statt. Neu im Vorstand vertreten sind Stephanie Silber, Geschäftsführerin Otto Stadtlander GmbH, Bremen, Jean-Paul Haessig, RCMA Asia PTE LTD, Singapur, sowie als Vertreter der Schweizer Textilindustrie Peter Spoerry, Spoerry 1866 AG, Flums. Im Vorstand  verbleiben Jan Kettelhack, Hch. Kettelhack GmbH + Co. KG, Rheine, Konrad Schröer, Setex-Textil-GmbH, Hamminkeln-Dingden, Axel Trede, Cotton Service International GmbH, Bremen, und Hannes Drolle, Getzner Textil AG, Bludenz/Österreich, sowie Manfred Kern, Linz Textil Holding AG, Linz, Österreich, als Repräsentant der österreichischen Textilindustrie.

Der seit 1996 im Vorstand tätige Rainer Hammer, Otto Stadtlander GmbH, Bremen, schied aus dem Vorstand aus, ebenso wie Martin Kaegi, Hermann Bühler AG, Winterthur, Schweiz.

Die Mitglieder des Vorstandes und des Präsidiums vertreten verschiedene Bereiche der textilen Lieferkette, z. B. Handel, Verarbeitung und Logistik. Durch diese vielfältigen Kompetenzen hat die Bremer Baumwollbörse Zugang zu einem umfassenden Netzwerk sowie weltweiten Informationsressourcen in der gesamten Baumwollindustrie.

Auf seiner 144. ordentlichen Generalversammlung im 146. Geschäftsjahr erstattete der Vorstand den Mitgliedern Bericht über das abgelaufene Geschäftsjahr und legte satzungsgemäß seine Rechnungsablage vor. Zum Abschluss der Generalversammlung referierte Dr. Ludger Weß zum Thema „Gentechnisch modifizierte Baumwolle: Mythen und Realität.“ Dr. Weß berät innovative Unternehmen zur strategischen Kommunikation. Außerdem arbeitet er seit den 80er Jahren als Autor und Kommentator vor allem im Bereich Gentechnik und moderne Landwirtschaft. 

In partnership with IPSOS, GINETEX presents the outcomes of its European barometer: "Europeans and textile care labeling" 70% of Europeans follow the textile care instructions featured on the labels and 80% admit that they would not (or would rarely) buy clothes without any labels, While another 84% feel concerned by water and energy savings . GINETEX, the international Association for Textile Care Labeling, called upon the French market research company IPSOS, to evaluate the behavior of European Consumers with regards to textile product labels and care symbols. This study, carried out in December 2016, combines the results of six different countries, gathered from a sample of 6,000 people in Germany, England, France, Italy, the Czech Republic and Sweden.
This IPSOS study reveals that 70% of Europeans follow the textile care instructions represented by the symbols. At a pan-European level, 57% even admit that they follow them 'often' and 13% do so 'always'. These figures illustrate the importance of care instructions in the minds of European consumers.
- 38% state that they follow these instructions in order to avoid washing problems such as shrinking, in the first place
- 31% follow them in order to preserve their clothes and keep them longer, as a second reason Overall, Europeans consider labels as too cumbersome and 62% admit cutting them out: for 74% of them, the labels itch and irritate their skin and for another 55%, they are often too long and uncomfortable. These results can differ from one European country to another.
However, the presence of the label is a real purchasing criterion since 80% of Europeans state that they would never or rarely buy a piece of clothing without a label.