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NCTO Endorses Mexican Anti-dumping Case With China

James A. Morrissey, Washington Correspondent

The president of the National Council of Textile Organizations (NCTO) has written a letter to the Mexican Economic Secretary Hugo Diaz strongly endorsing his country's decision to seek a World Trade Organization (WTO) anti-dumping investigation of denim imports from China. NCTO President Cass Johnson said the action is an important step toward preventing damage to both Mexican and U.S. denim manufacturers.

Johnson noted that the Mexican petition to the WTO says the average price of Chinese denim fabric in 2008 and 2009 was 28 cents per square meter -- a price, he said, that does not even cover the cost of the cotton in the denim fabric.

"Chinese exports at these absurd price levels hurt both Mexican and U.S. textile producers because they deprive companies on both sides of the border of badly needed sales and production," Johnson said. "By doing so they undermine the free market principles that govern NAFTA agreements while encouraging illegal trade in NAFTA qualifying goods."

Johnson added that, as North America Free Trade Agreement (NAFTA) partners, the U.S. textile industry fully supports and encourages the Mexican government to take "aggressive action" to prevent additional job losses and production in the Mexican industry.

June 8, 2010