Home / Knowledge / News / Textiles / KORUS will hurt US economy & displace textile jobs
KORUS will hurt US economy & displace textile jobs
02
Jun '11
As representatives of the nearly 600,000 person fiber, textile and apparel sector, we are (National Council of Textile Organizations, American Manufacturing Trade Action Coalition, National Textile Association, American Fiber Manufacturers Association, U.S. Industrial Fabrics Institute) writing to express our concerns regarding job losses that will occur in the sector if the United States-Korea Free Trade Agreement (KORUS) is passed. We have analyzed the agreement carefully and come to the unfortunate conclusion that the textile portions of the KORUS agreement are seriously flawed. If passed in its current form, the agreement will open the U.S. market to a massive one-way flow of sensitive textile products from South Korea, as well as illegal Chinese imports, while providing no new export business to our textile manufactures and workers.

Instead of expanding markets, the KORUS will result in the continued outsourcing of valuable textile, apparel, and other manufacturing jobs. Using export projections from the United States International Trade Commission (USITC) and other U.S. government analysis, we are very concerned that 40,000 textile and related jobs could be lost under the KORUS. With our nation struggling through one of the worst economic periods in its history, we believe this agreement sends the wrong message to our workers and to American voters.

The KORUS agreement represents the second largest free trade agreement (FTA) that the United States has entered into behind the North American Free Trade Agreement (NAFTA). In contrast to recent trade agreements, the KORUS is also the first agreement since NAFTA where the country in question has a large developed textile sector which exports significant amounts of textile products to the United States.

During the last 40 years, Korea has become a large textile-producing country with a vertically integrated industry as a result of extensive support from its government. In 2010, Korea was the second largest exporter of textile yarns and fabric to the United States by volume. From a bilateral perspective, U.S. textiles and apparel imports from Korea are nearly three times the value of our exports to Korea. This relationship in trade added $745 million to the U.S. trade deficit in 2010 alone.

In our technical markets, South Korea has emerged as the number one exporter to the U.S. of advanced textile reinforcements and coated/laminated membranes which are used for roofing materials, potable water and fuel bladders, fabric shelters and structures, and automatic fabrics. At the same time, U.S. producers have reported that Korean competitors are engaged in predatory pricing and are selling these products at 20-40% below the normal market pricing. During the time period of these reports, Korea has moved from a distant number two position to a significant leading position among countries exporting to the U.S. in this category. The increase in Korea market share has comeat the expense of U.S. manufacturers and workers.


Must ReadView All

EU renews GSP+ scheme for Pakistan 2 years

Apparel/Garments | On 24th Feb 2018

EU renews GSP+ scheme for Pakistan 2 years

Pakistani exporters can enjoy preferential duties on exports to the...

Surat wary of e-way bills

Textiles | On 24th Feb 2018

Surat wary of e-way bills

There is no respite for Surat’s textile manufacturers and retailers....

Retailers choose sides in Alibaba-Tencent battle in China

Apparel/Garments | On 24th Feb 2018

Retailers choose sides in Alibaba-Tencent battle in China

Two big Chinese firms— Alibaba Group Holding Ltd and Tencent Holdings ...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search