Home / Knowledge / News / Textiles / Yarn-Forward rule attracts $700mn FDI in US textile sector
Yarn-Forward rule attracts $700mn FDI in US textile sector
06
Mar '14
The U.S. textile industry has seen a surge in foreign direct investment over the past 8 months. No less than 8 foreign companies have made public announcements over that period to invest more than $700 million in new U.S. textile facilities and equipment. These investments are projected to provide approximately 1,900 new jobs in North Carolina, South Carolina, Georgia, and Louisiana. 
 
The United States has become an increasingly attractive option for textile manufacturers looking for competitive energy, transportation, and fiber costs. Beyond these basic economic factors, a key driver for this recent investment surge has been the success of U.S. trade policy in the textile sector. Over the past 25 years, the U.S. has completed a series of free trade agreements that include a Yarn-Forward Rule of Origin for textile and apparel products. 
 
As the name implies, the Yarn-Forward rule requires that yarn, fabric, and assembly production steps be completed in the FTA region in order to qualify for duty-free preference into the United States. This rule has served as a catalyst for record breaking exports of U.S. yarns and fabrics that are eventually processed into finished apparel and textile home furnishings in FTA partner countries. These goods are then shipped back to the U.S. duty free for purchase by U.S. consumers.
 
The Yarn-Forward rule has helped the U.S. textile industry become the third largest exporter of textile products in the world. U.S. exports of all textile products were nearly $17.9 billion in 2013. Over the past 10 years, U.S. textile exports have grown dramatically, from $12.7 billion in 2003 to $17.9 billion in 2013, a 40.6% increase over that period.
 
The single largest investment announcement, approximately one-quarter of a billion dollars, came from Gildan Activewear Inc., based in Montreal, Canada. Peter Iliopoulos, Senior Vice-President of Public and Corporate Affairs at Gildan highlights the benefit of a strong Yarn-Forward rule for American textiles stating “The Yarn-Forward rule was a significant factor in Gildan’s decision, announced in September of 2013, to make an additional investment of approximately $250 million in U.S. yarn spinning operations. 


Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Textile institutes need to change their curriculum

Shawn Honeycutt, Bolger & O'Hearn

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Frank Gossmann, Rotorcraft AG

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Christiane Thies,

Christiane Thies

Founded in 1892, Thies has concentrated on the fabrication of high-quality ...

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

EDANA, the international association serving the nonwovens and related...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

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

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

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

Leave your Comments


November 2019

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

Follow us on instagram

Follow

Follow Fibre2Fashion On

Follow Fibre2Fashion On


Advanced Search