NCTO Supports House Resolution Opposing Expansion of Generalized System of Preferences Program (GSP) to Include Apparel, Textiles, Footwear

WASHINGTON, DC –The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles, from fiber to finished sewn products, voiced strong support for a House resolution opposing the inclusion of apparel, textile and footwear products in the Generalized System of Preferences (GSP) program.

“I want to thank Congressman Albio Sires (D-NJ) and Congressman Adriano Espaillat (D-NY), Congresswoman Karen Bass (D-CA) and Congressman Mario  Diaz-Balart (R-FL) for introducing this important resolution, which expressly opposes the expansion of GSP to include apparel, textiles and footwear. Such a move would not only jeopardize the U.S. textile industry but also erode the critically negotiated trade preferences between the United States and our trading partners,” said NCTO President and CEO Kim Glas.

“In designing the GSP program 45 years ago, Congress intentionally excluded import-sensitive items to prevent domestic industries from being adversely impacted.

“An expansion of GSP for such imported products would put at risk the entire U.S. apparel and textile industry and its workforce – not to mention its $77 billion in annual output, $30 billion in annual exports and $20 billion in investment over the last decade,” Glas said.

“Further, it would undermine our free trade agreements in the Western Hemisphere, a critical export market for U.S. textiles that supports two million direct jobs. The Western Hemisphere accounts for 70 percent of apparel and textile exports and $35 million in two-way trade. We can’t thank all of the co-sponsors enough for their tremendous leadership on this issue and we support this critical resolution.

The resolution underscores how expanding GSP would impact Western Hemisphere trade and undermine trade preference benefits under the African Growth and Opportunity Act (AGOA).”

Please view the full resolution here.

To see NCTO’s position on GSP, please see our Op-Ed here.

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

  • U.S. employment in the textile supply chain was 585,240 in 2019.
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019.
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019.
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

NCTO Welcomes Administration’s Section 301 Investigation into Vietnam’s Currency Practices

WASHINGTON—The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles, from fiber through finished sewn products, welcomes the Trump administration’s recent announcement of the launch of a Section 301 investigation into the currency valuation practices of Vietnam. “NCTO strongly opposes foreign governments undervaluing their currencies, which puts U.S. manufacturers at a disadvantage by inflating the cost of U.S. exports and deflating the cost of U.S. imports.  This unfair trade practice displaces U.S. production and jobs, as well as those of our Western Hemisphere trade partners utilizing U.S. textile inputs,” said NCTO President and CEO Kim Glas. “The U.S.-Vietnam trading relationship suffers from many of the same problems that we have experienced with China. There are strong indications of a purposefully undervalued currency that warrants a full investigation.  Further, the industries in the two countries are inextricably linked, as Vietnam sources much of its textile inputs from China,” Glas added. In 2019, the U.S. trade deficit with Vietnam stood at $55.8 billion, including a $14.6 billion deficit in textiles and apparel specifically.  Vietnam has demonstrated tremendous growth in the U.S. textile and apparel market and is the second largest supplier after China, holding a 15.8% import market share for January-July 2020. “Scrutinizing unfair practices such as currency undervaluation by Vietnam is one more action the administration can take to eliminate predatory trade practices by countries that continuously undermine domestic production and that of our free trade partners.  Strong trade enforcement is key to leveling the playing field. With so much discussion about onshoring production, including personal protective equipment (PPE), we believe this investigation is necessary, and we look forward to further opportunities to provide input as part of the formal investigation process.”

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.
  • U.S. employment in the textile supply chain was 585,240 in 2019.
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019.
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019.
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, 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