The United States Industrial Fabrics Institute (USIFI) and the Narrow Fabrics Institute (NFI), both divisions of the Industrial Fabrics Association International IFAI) have submitted their comments regarding US President Donald Trump's intent to open the North American Free Trade Agreement for modernization in today's marketplace. Other trade associations -- including the National Council of Textile Organizations -- and industry companies have also submitted the public comments regarding NAFTA.
The following is the USIFI/NFI public comment filed on June 12 with the US Trade Representatives Office.
June 12, 2017
These comments are provided on behalf of the United States Industrial Fabrics Institute (USIFI) and Narrow Fabrics Institute (NFI) in response to the Federal Register request for public comments found at 82 FR 23699 and dated May 23, 2017 (USTR–2017–0006).
The United States Industrial Fabrics Institute (USIFI) is a division of the Industrial Fabrics
Association International (IFAI). Member companies manufacture highly-specialized textile
products, advanced materials, and components used to support a variety of high-value-added and sophisticated industries. These include the aerospace, automotive, construction, marine, medical, military and safety/protective gear sectors among others. USIFI currently has 75 member companies, and its headquarters are in Roseville, MN. http://usindustrialbabrics.ifai.com/
The Narrow Fabrics Institute (NFI) is a division of the Industrial Fabrics Association International (IFAI) whose mission is to work on common interests and issues in the narrow fabrics industry. Narrow fabrics are defined as textiles that are no more than 12 inches (300mm) in width and are made by weaving, knitting or braiding fibers or yarns with an edge to prevent unraveling. The primary product areas of NFI’s 57 member companies include automotive, military, safety, transportation, medical, and other (aerospace, industrial, pet, recreational, electronics). The North America market is estimated at over $335 million in annual sales. http://narrowfabrics.ifai.com/
USIFI and NFI agree that NAFTA is due for comprehensive review to determine whether it can be improved. However, noting that U.S. textile and apparel exports to NAFTA totaled $11.1 billion in 2016 and the high level of integration that exists today in the North American textile supply chain, USIFI and NFI oppose a wholesale cancelation of NAFTA.
Instead, USIFI and NFI support an improvement along the lines of:
Committing greater resources and focus to customs enforcement
During the past 30 years, there has been a systematic deemphasis of commercial fraud
enforcement at U.S. Customs and Border Protection (CBP). CBP suffers from both a lack of resources and focus, especially noting the uptick in the number of trade agreements and
overall trade flows during this timeframe. Consequently, the benefits of these agreements
have been siphoned off by third-party countries and importers willing and able to
circumvent U.S. trade laws and agreements.
USIFI and NFI strongly support the adoption of a new mentality that places an increased,
but proper, emphasis on customs enforcement of NAFTA and other FTAs. We encourage
the Trump administration and Congress to tangibly demonstrate that new approach by
increasing resources at CBP to enable more effective enforcement of U.S. trade laws and
USIFI and NFI also note that more effective trade enforcement will not only pay for itself,
but also generate new revenues that could then be used to promote trade facilitation
through the rebuilding and expansion of America’s infrastructure.
Eliminating exceptions to yarn forward in the NAFTA rule of origin
The standard rule of origin for textiles in nearly all U.S. FTAs is the yarn-forward rule, which requires yarn and everything following the yarn stage to be done in the FTA region. Yarn forward was originally devised under NAFTA and is the accepted rule of origin for the domestic textile industry because it reserves key benefits for manufacturers within the signatory countries. A yarn-forward concept is also markedly easier to enforce versus a value-added rule of origin.
Although most U.S. FTAs are built on yarn forward as the basic structure, exceptions to the basic rule exist in many agreements that shift business away from U.S. producers to FTA parties, namely China. These yarn-forward loopholes take many forms, with the most egregious being TPLs. TPLs allow for a specific quantity products to be shipped duty free among free trade partner countries even though the components within the product are sourced from countries that are not signatories to the agreement.
Under NAFTA, Mexico is permitted ship up to the equivalent of 24 million square meters (SME) of certain fabrics and made-up textile articles, including man-made fiber industrial products, annually to the U.S. duty free. Canada has a 72 million SME TPL for this category of articles. There are three additional TPLs for cotton and man-made fiber yarns, cotton and man-made fiber apparel, and wool apparel. These and other loopholes and should be eliminated in any renegotiation.
Closing the loophole that dilutes the Kissell Amendment
The Kissell Amendment, 6 USC 453b, is a Berry Amendment-like buy American law for textiles that applies to the Department of Homeland Security (DHS). In practice, however, DHS only applies Kissell to purchases by the Coast Guard and Transportation Security Administration (TSA) because of U.S. commitments made under the WTO’s Revised Agreement on Government Procurement (GPA).
With respect to its application to TSA, Kissell has further been diluted. This is because the U.S. government failed to notify Mexico and Canada under NAFTA, as well as Chile under the Chilean FTA, that the United States was reserving TSA from the GPA when TSA was created. Thus, the United States has taken the position that those countries are acceptable as U.S. sources under Kissell. This oversight should be rectified in any NAFTA renegotiation.
Thank you for your consideration of our views, and we look forward to working with the Trump administration in the NAFTA modernization effort.
Do you have an event to publicize? A new product or service?
Contact us by clicking here and reserve this prime ad location.
July 18-19: Home Furnishings Manufacturing Solutions Expo, Greenville, S.C., USA
July 23-26: Outdoor Retailer Summer Market, Denver, Co., USA
July 24-27: Intermediate Nonwovens Training Course, Cary, N.C., USA
September 4-6: Cinte Techtextil China 2018, Shangai, China
Click here to view the complete technical textiles events calendar that includes show information links.
Are you looking for a quick understanding of the China technical textiles industry? Through our special relationship with China Nonwovens & Industrial Textiles Association (CNITA) and their China Textile publication, BeaverLake6 Report is pleased to post the English-translation of the recently issued "Status Quo of China's Nonwovens and Industrial Textiles Industry, 2017." The report covers the different levels of the industry, geographic export demographics, and forecast the needs in the major end market applications. Click here to read the report in our China Textile website section. Posted June 18, 2018
I am pleased to announce the second part of my report 2018 State of the U.S.Technical Textiles Industry has been published by Textile World magazine.
This first part features a general industry overview, plus an evaluation of the status and impact of US trade positions.
The second part, featured in the April/May issue will cover major end markets for technical textiles such as automotive and military.
Click here to go to the Textile World website to download a copy.
Steve Warner, Publisher
The joint owners of the ITMA Asia + CITME 2018 textile machinery exhibition have announced new dates for the 6th combined showcase to be held at the National Exhibition and Convention Centre in Shanghai, China. The new dates are October 15-19, 2018. According to show owners CEMATEX and Chinese partners, the Sub-Council of Textile Industry, CCPIT (CCPIT-Tex), China Textile Machinery Association (CTMA) and China Exhibition Centre Group Corporation (CIEC), the shift in the exhibition dates is due to a new national initiative, which affected the scheduling of all events at the exhibition center in October. [Note: BeaverLake6 Report is an industry media partner for the show.] Posted February 11, 2018
In October at the IFAI Expo 2017, I had the opportunity to sit down with -- at the time -- incoming Glen Raven CEO Leib Oehmig for an interview that has now been posted on the Textile World website and will also be in their printed November/December issue.
I've known Mr. Oehmig for probably more than 20 years and have watched his steady management progression within the Glen Raven organization. During the interview, he was very gracious with his time at a busy show and transparent in answering questions on a far-ranging number of topics including the management transition from Alan Gant, Jr., to Mr. Oehmig, the first non-Gant family member to lead Glen Raven. Click here to read the interview and learn more about the thoughts of one of our industry leaders.
As the saying goes "Politics make strange bedfellows." Today we find more than one-third of the Senate Democrats urging the inclusion of key amendments in the US FY 2018 National Defense Authorization Act (2018 NDAA) that would strengthen the US government's "Buy American" policies.
Versions of the NDAA were recently passed by both the Senate and House and a joint committee is working out a single bill. The submitted Senate version, however, left out proposed key amendments designed to prevent the weakening of domestic sourcing for the US military. One amendment included the prevention for lifting of the restrictions in place for domestic sourcing of wearable electronic products and another amendment prevents certain exceptions to the Berry Amendment which would allow non-domestic sourcing through memoranda of agreement with foreign governments.
What's the "strange bedfellows" aspect? Well, "Buy American" is also one of the key positions taken by the Trump administration. So, we have both the Democrats and the Trump administration on the same side, trying to keep strong the US domestic capability for supplying the military. Strange bedfellows given the current political animosity in Washington...but still the cooperation is vital for the US domestic textile industry.
Posted November 3, 2017
Since last August, the US Navy has been planning to phase out its iconic traditional wool peacoat in favor of a less expensive, synthetic cold weather parka which is lighter in weight and more versatile in types of inclement weather. It actually replaces two types of coats and the seabag the wool coat is stored.
The wool coat, however, has some powerful friends in the US Congress. Companies such as Northwest Woolen Mills in Woonsocket, R.I. and Sterlingware in Boston, Mass. Altogether, the supply chain involved in the manufacture of these woolen peacoats -- including sheep farmers -- is estimated to account for 400 jobs in the Northeast. Add to the drama that the new parka, made by the long-time military supplier Propper, is expected to be manufactured in Puerto Rico, a perceived feeling the new coat will be made by non-American workers. Read more...
June 29. 2017
The Office of the U.S. Trade Representative (USTR) has released President Trump's 2017 Trade Policy Agenda. The document, officially called 2017 Trade Policy Agenda and 2016 Annual Report of the President of the United States on the Trade Agreements Program, outlines the new Administration’s four trade priorities:
BeaverLake6 Report has created a special page within this website and placed the first chapter of the 336-page document which summarizes the policy. Click here to read it. Posted March 2, 2017
Back on March 24, 2016, I was one of the first to predict the Trans-Pacific Partnership (TPP) agreement was a dead deal. In fact, I said that I wouldn’t be surprised that, if Donald Trump became President, the agreement is shredded on day one of his new administration. Well, I was off by three days. Yesterday, President Trump signed an Executive Order, officially withdrawing the United States from the TPP agreement. Now the question is can the National Council of Textile Organizations put together a comprehensive plan for the domestic textile industry in a post-TPP era? Click here to read the rest. Posted January 25, 2017
In 2015, I posted more than 425 items of interest for our industry on the BeaverLake6 Report website. In reviewing it all last week, it got me to thinking about putting together a list of influential events, news and trends that I observed during the past year. I have focused primarily on the US marketplace but each of “the things that mattered” to me has global implications.
So, here go my thoughts in no particular order of importance. Let me know if you agree or if I have missed some. Click here to read the list.
Posted January 17, 2016
“BeaverLake6 Report is one of the ‘go-to’ websites that I use. New contributors and innovative products are regularly featured, which to me, is the lifeblood of the industry.”
Ricky Richards (Sales) Pty Ltd.
Read more testimonials by clicking here.
Do you wish to be added to our subscriber list? It's easy and it's free. Click here and write "Subscribe" in the message box.
Come back often during the week. We update BeaverLake6 Report almost every day with the latest industry information.
Success in our industry is all about knowledge, integrity and developing relationships. BeaverLake6 Group, LLC, publisher of BeaverLake6 Report, is a management consulting firm focused on helping businesses understand the complex global technical textiles industry.
Please click here to view testimonials about Steve Warner, President/CEO of BeaverLake6 Group, LLC.
Connect with Steve Warner, publisher of BeaverLake6 Report, at LinkedIn.