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NCTO testifies at USTR hearing on proposed 301 tariff list

21 Jun '19
2 min read

Though China’s extreme position in the textile and apparel marketplace has been advanced by ‘illegal practices’, the effectiveness of the US case has been ‘greatly diminished through the omission’ of finished textile and apparel products from the various retaliatory tariff lists, according to Daniel Nation, director of government relations for Parkdale Mills.

Parkdale Mills is a member of the US National Council of Textile Organisations (NCTO), whose member companies are testifying at the US Trade Representative’s (USTR) nearly two-week long hearing starting this week on the proposed Section 301 tariff list as part of the administration’s ongoing review and consideration of the Tranche 4 of retaliatory tariffs on US imports from China.

Nation kicked off the US textile industry’s testimony on the first day of the hearing.

China’s ‘illegal practices’ include state-sponsored subsidies, unethical labour and environmental practices and theft of intellectual property, Nation said in prepared remarks at the USTR hearing, which was part of an NCTO press release.

“Including finished textile and apparel products on the 301 retaliation list would greatly enhance the administration’s leverage in the ongoing negotiations and help redirect trade in this sector to the Western Hemisphere,” Nation said.

“NCTO is pleased the proposed Tranche 4 includes finished imported items from China, which have the most significant impact on US employment, production and investment,” said NCTO president and chief executive officer Kim Glas, who testified at the hearing on June 20.

“We believe this move will lead to the re-shoring of production to the United States and the Western Hemisphere production platform. It’s critical we address and mitigate China’s rampant trade distortions,” Glass noted, urging the government to institute a fair, transparent and expeditious exclusion system for all retaliation tranches.

NCTO is strongly encouraging the USTR’s office and President Donald Trump to enact the proposed 25 per cent penalty tariffs on finished apparel items and other sewn products; maintain the previous product input exemptions that were vetted by the US Government and granted and excluded from previous tranches; and apply 301 retaliatory tariffs to Section 321 de minimis shipments. (DS)

Fibre2Fashion News Desk – India

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