US senators and the National Council of Textile
Organizations (NCTO) call on President Biden to tackle the impact of China’s
so-called "predatory" trade practices" on the country's domestic
apparel manufacturing sector.
A bipartisan group of US Senators seek immediate action to combat what they describe as China’s “illegal trade practices,” which they warn could lead to a “coming disaster” for domestic textile and apparel production and employment and throughout the Western Hemisphere.
Senators Thom Tillis Sherrod
Brown, Raphael Warnock, Ted Budd, J.D. Vance, Tim Scott, Lindsey Graham, and
Ben Ray Luján have asked President Biden to convene an interagency meeting with
key leaders from the US Trade Representative, Department of Commerce,
Department of Homeland Security, Department of the Treasury, and the National
Security Council.
The meeting would aim to
“identify the root problems, develop robust and urgent solutions, and engage
directly with US textile and apparel industry and regional allies”.
The senators explain the
importance of the US textile and apparel industry to national security,
healthcare, and the economy, highlighted US textile production supports over
500,000 jobs with $39bn in annual shipments.
The senators expressed concern
over the impact of China’s “aggressive and illegal practices” on US supply
chains, including transhipment, undervaluation of cheap products and forced
labour as well as skirting tariffs, and penalties.
NCTO president and CEO Kim
Glas commends the bipartisan group of senators for their initiative. Glas
thanked senators Tillis and Brown for leading the effort and highlighted the
urgent need for action to address a wide range of illegal trade practices
“severely impacting” the US textile and apparel industry.
She points out the industry is
being overwhelmed by a multitude of challenges, including a lack of effective
customs enforcement, unfair trade practices fuelled by the ‘de minimis’
loophole, import fraud undermining free trade agreements, and forced labour
infiltrating supply chains through other markets.
The senators’ letter outlines
specific actions the Biden administration should take, including:
Glas agrees with the senators’
suggestions and adds: “To maintain the industry’s operations and
competitiveness, the administration must take immediate steps to increase its
enforcement activities and crack down on systemic abuse that is undermining the
very fabric of our domestic textile supply chain and its workforce.”