Why the U.S. textile industry supports the White House on trade

The U.S. trade representative says it won’t turn back on yarn-forward. “I assure you there will be no surprises” in the TPP negotiations, U.S. Trade Representative Froman told NCTO executives in March. “We will work with you hand and glove.”

As part of negotiations over the 12-nation Trans-Pacific Partnership, which includes the U.S., Japan and Vietnam, the U.S. is insisting on a “yarn forward” rule of origin, that only fabric produced from yarn made by a TPP country would be eligible for duty-free trade.

Why does that matter? Since China isn’t a TPP member, Chinese-made fabric wouldn’t qualify. That’s important because Vietnam, a clothing-export powerhouse, often uses Chinese-made fabric, and that clothing wouldn’t be eligible for lower tariffs in the U.S. Vietnam would either have to develop its own fabric industry or import cloth from another TPP country to reap TPP benefits.

The rule could make Vietnam a more attractive place for U.S. textile-industry investment.

National Council of Textile Organizations President Auggie Tantillo says the industry supports the administration’s “yarn forward” commitment and it is backing the White House in its current effort to get Congressional approval for Trade Promotion Authority (TPA)

“We want to show the administration we can be an asset,” says Mr. Tantillo.

Says a spokesman for the U.S. trade representative: “Anytime U.S. manufacturing supports , that is an extremely powerful message to deliver to Capitol Hill.”

Read more …

Why the U.S. textile industry supports the White House on trade, Wall Street Journal, May 4, 2015

U.S. National Council of Textile Organizations (NCTO) supports TPA and TPP, Apr 17, 2015

VINATEX to build textile and apparel raw materials complex to prepare for TPP, Mar 20, 2015
VINATEX plans to spend VND9.4 trillion (US$4.4 billion) on textile and garment, weaving and dyeing and infrastructure projects in the 2015-17 period. About 60 per cent of the capital will be poured into weaving, dyeing and infrastructure projects to lure other businesses.

The Effect of the TPP on the U.S. Textile Industry, Q&A with NCTO President Auggie Tantillo, Feb 2015

Taiwan’s United Textile builds $100 million garment factory in Vietnam, Dec 23, 2014

$1.6 billion planned in textile investments to prepare for TPP, Jan 23, 2014

BIDV to loan VINATEX $600 million to prepare for TPP rules of origin, Jan 16, 2014