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NCTO welcomes inclusion of apparel in China tariff list

14
Aug '19
Pic: Shutterstock
Pic: Shutterstock
The National Council of Textile Organizations (NCTO), representing the full spectrum of US textiles, has welcomed the US administration's decision to include finished apparel and textile products in China tariff list. The US Trade Representative (USTR) has announced next steps for imposing 10 per cent tariff on $300 billion of Chinese imports.

While certain products are removed from the list that goes into effect on September 1, imposition of tariff on some other articles has been delayed to December 15. Clothing items are included in both lists.

“As US manufacturers that have suffered enormously from China’s illegal IPR activities and state-sponsored export subsidies, we strongly support the administration’s decision to move forward with this next tranche of 301 retaliatory tariffs that will finally cover a significant portion of China’s exports in our sector,” said NCTO President and CEO Kim Glas in a statement.

“We also believe that the inclusion of products that are within significant Chinese employment sectors like finished apparel, will substantially increase the administration’s negotiating leverage with the Chinese (government) to address systemic trade reforms that are needed. Any such settlement must include short- and long-term reforms that eliminate China’s predatory trade practices in key industrial sectors across the board, such as textiles and apparel.

"We are at a critical juncture in terms of global economic trading patterns.  The current trade negotiations with China offer the best opportunity in a generation to restore fairness and market-based competitiveness to a system that has been overwhelmed by China’s illegal and state-planned effort to dominate global manufacturing," Glas said.

However, NCTO is concerned that certain inputs already vetted by the administration and removed from previous retaliatory tariff lists remain on the list for proposed duties. "We have long argued that adding tariffs on imports of manufacturing inputs that are not made in the US in effect raises the cost for American companies. We urge the administration to uphold these previous exclusions. We also continue to request that the administration include de minimis shipments below $800 on the retaliatory list. The provision creates a significant loophole at a time when the administration is seeking to address China’s unfair trade practices,” she added. (RKS)

Fibre2Fashion News Desk – India


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