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NCTO-CANAINTEX to work together on China Customs Issues
Jul '08
Meeting in Gastonia, North Carolina, the leaders of the U.S. and Mexican textile industries agreed to work together on a number of areas in order to increase the competitiveness of the textile industry in North America. Among those areas was countering the threat of subsidies from China, customs enforcement and regional infrastructure.

“This meeting was an important step in coordinating our efforts to ensure that North America's textile platform remains a source of employment for more than two million workers across the region” said National Council of Textile Organizations (NCTO) chairman Anderson Warlick.

“The impending implementation of cumulation provisions in CAFTA/DR on August 15 makes it clear that the future of the U.S. and Mexican textile industries—and that of our colleagues in the hemisphere—is inextricably linked” said David Garcia, president of Camara Nacional de la Industria Textil (CANAINTEX). “We must work together to secure our collective future.”

The two groups agreed they would work jointly with U.S. and Mexican government officials to combat fraudulent shipments into both markets. According to Anderson Warlick, Chairman of NCTO, “Customs fraud continues to plague both our sectors, particularly the illegal use of Chinese yarns and fabrics to claim NAFTA and CAFTA origin. Last year, NCTO initiated a Customs Fraud Alert program and we look forward to integrating our data gathering with Canaintex.”

“Canaintex member companies have developed very specific information which we are confident will be of assistance to customs officials in both countries,” said Mr. Garcia.

Comparing notes on recent missions to China, the two organizations agreed that China will remain a disruptive force in world textile markets and that unfair subsidies to Chinese textile producers remained the most important threat to the competitiveness of North American textile industry.

According to Mr. Warlick, “China's textile and apparel complex employs more workers than the entire U.S. manufacturing sector and today gets more than five dozen subsidies from the Chinese government. As a result, China has wreaked havoc throughout the world textile and apparel trading sector each time trade restraints have been removed”.

Both organizations called on the U.S. government to extend the current Textile Monitoring Program (TPM) to China. “We are happy to compete against Chinese companies but we cannot compete against the Chinese government,” said Mr. Garcia. “We strongly urge the U.S. Government to put China under the TMP.”

NCTO and CANAINTEX agreed to work with textile and apparel organizations from the CAFTA and ANDEAN region to coordinate strategy on these and other issues in the years ahead.

Key Facts about U.S. Textile Industry
• One of the largest manufacturing employers in the United States, the overall textile sector employed nearly one million workers (862,800) in 2006. Textile mills alone employed 356,700 workers.

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