WASHINGTON — October 30, 2012 — NCTO President Cass Johnson praised the decision by the United States government to join the consultations between Mexico and China regarding Chinese textile subsidies. 

"We are pleased that the U.S. is joining the consultations on this very important case.  For decades, large and comprehensive subsidies by the Chinese government have prevented free and fair markets from operating in world trade in textiles and apparel.  These subsidies have directly contributed to the loss of hundreds of thousands of U.S. textile workers.   The landmark case by the government of Mexico exposes the Chinese government intervention for exactly what it is - a mercantilist state-guided effort to control one of the world's largest manufacturing sectors."

Over the last eleven years, imports of Chinese textile and apparel products have increased by 523 percent or $34 billion and now total nearly $41 billion.  Chinese market share increased from 10 to 40 percent.    During the same period of time, 379,000 U.S. textile jobs were lost as trade shifted out of the Western Hemisphere.   Textile and apparel producers in Mexico, Central America and the Andean regions lost hundreds of thousands of manufacturing jobs as well. 

"The U.S. government decision to join the consultations sends a strong signal of support to the government of Mexico in this important case."

For more information regarding Chinese textile and apparel subsidies, see NCTO press release and testimony <http://www.ncto.org/newsroom/pr2011-1005--NCTOAnalysisShowsVastChineseSubsidies--NewUrgencyforCurrencyVote.pdf> to USTR on October 5, 2011 regarding 30 subsidies given to Chinese textile and apparel producers by the Chinese government.

Key Facts about the U.S. Textile Industry 

·        U.S. textile shipments totaled $53.3 billion in 2011.
·        The U.S. textile industry is a large manufacturing employer in the United States.  The overall textile sector - from textile fibers to apparel - employed 506,000 workers in 2011. 
·        Textile companies alone employed 238,000 workers.
·        The U.S. government estimates that one textile job in this country supports three other jobs.
·        The U.S. textile industry is the third largest exporter of textile products in the world. Exports in 2010 grew 13.4 percent to more than $17 billion in 2011.  Total textile and apparel exports were a record $22.4 billion. 
·        Nearly two-thirds of U.S. textile exports during 2011 went to our Western Hemisphere free trade partners.  The U.S. textile industry exported to more than 170 countries, with 22 countries buying more than $100 million a year.
·        The U.S. textile industry supplies more than 8,000 different textile products per year to the U.S. military.
·        The U.S. is the world leader in textile research and development, with private textile companies and universities developing new textile materials such as conductive and electronic textiles, antimicrobial fibers, antiballistic body armor for people and the machines that carry them and new garments that adapt to the climate to make the wearer warmer or cooler.
·        The U.S. textile industry invested more than $16.5 billion in new plants and equipment from 2001 to 2010.  And recently producers have opened new fiber, yarn and recycling facilities to convert textile waste to new textile uses and resins.  
·        The U.S. textile industry has increased productivity by 45 percent over the last 10 years, making textiles one of the top industries among all industrial sectors in productivity increases. 
·        In 2011, textile workers on average earned 151% more than apparel store workers ($575 per week vs. $229) and received health care and pension benefits.

Posted on October 30, 2012

Source: NCTO