WASHINGTON — July 11, 2018 — The National Council of Textile Organization’s (NCTO) applauds the Trump administration for its continued effort to resolve longstanding trade inequities with China, noting the July 10 announcement proposing $200 billion in Chinese goods for an added 10 percent tariff.  The latest U.S. action follows China’s unjustified retaliation against U.S. imports after the United States placed Section 301 tariffs on Chinese goods in response to that country’s unfair trade practices related to the forced transfer of American technology and intellectual property.

NCTO also called on the Trump administration to include finished textile and apparel products on any future lists of imports from China to be made subject to Section 301 tariffs.

“The Trump administration is right to confront China’s unfair trade practices.  Section 301 tariffs show the world that countries who cheat the United States on trade will be held accountable,” said NCTO President & CEO Auggie Tantillo.

That said, NCTO will be thoroughly vetting the new retaliation list.  “With the inclusion of virtually all fiber, yarn and fabric tariff lines, NCTO’s response will be on a line-by-line basis, with support or opposition to individual lines dependent on the how the competitiveness of the U.S. textile industry is impacted,” Tantillo continued.

“NCTO is convinced that the Trump administration’s Section 301 tariffs would be far more effective if Chinese apparel and sewn non-apparel end products were included in the 301 list because that would benefit the entire U.S. textile and apparel supply chain,” Tantillo said as he referred to NCTO’s China 301 public comments filed on May 11 and noted that no apparel and sewn non-apparel end products were included on the U.S. government’s latest proposed tariff list.

“If properly targeted, Section 301 tariffs would not only address the underlying illegal activity on the part of China, but also help reshore American jobs and boost U.S. exports to the NAFTA and CAFTA regions. That’s why NCTO will continue to engage the Trump administration on ways to maximize the benefit of Section 301 tariffs to American industry and workers,” Tantillo added.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

• U.S. employment in the textile supply chain was 550,500 in 2017.
• The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017.
• U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017.
• Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

Posted July 11, 2018

Source: NCTO

WASHINGTON — July 10, 2018 — U.S. Trade Representative Robert Lighthizer today released the following statement regarding action under Section 301 of the Trade Act of 1974:

“On Friday, in response to unfair Chinese practices, the United States began imposing tariffs of 25 percent on approximately $34 billion worth of Chinese imports. These tariffs will eventually cover up to $50 billion in Chinese imports as legal processes conclude. The products targeted by the tariffs are those that benefit from China’s industrial policy and forced technology transfer practices.

“China has since retaliated against the United States by imposing tariffs on $34 billion in U.S. exports to China, and threatening tariffs on another $16 billion. It did this without any international legal basis or justification.

“As a result of China’s retaliation and failure to change its practices, the President has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports. This is an appropriate response under the authority of Section 301 to obtain the elimination of China’s harmful industrial policies. USTR will proceed with a transparent and comprehensive public notice and comment process prior to the imposition of final tariffs, as we have for previous tariffs.

“On August 14, 2017, President Trump instructed USTR to begin the Section 301 process.  For many years, China has pursued abusive trading practices with regard to intellectual property and innovation. USTR conducted a thorough investigation over an 8-month period, including public hearings and submissions. In a detailed 200-page report, USTR found that China has been engaging in industrial policy which has resulted in the transfer and theft of intellectual property and technology to the detriment of our economy and the future of our workers and businesses.

“USTR’s Section 301 report found that Chinese policies and practices force U.S. innovators to hand over their technology and know-how as the price of doing business in China. China also uses non-economic means to obtain U.S. technology, such as using state-owned funds and companies to buy up American businesses and imposing burdensome intellectual property licensing requirements in China. USTR’s report also found that the Chinese government sponsors the outright theft of U.S. technology for commercial benefit. These practices are an existential threat to America’s most critical comparative advantage and the future of our economy: our intellectual property and technology.

“For over a year, the Trump Administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition. We have been very clear and detailed regarding the specific changes China should undertake. Unfortunately, China has not changed its behavior — behavior that puts the future of the U.S. economy at risk. Rather than address our legitimate concerns, China has begun to retaliate against U.S. products. There is no justification for such action.

“As in the past, the United States is willing to engage in efforts that could lead to a resolution of our concerns about China’s unfair trade practices and to China opening its market to U.S. goods and services.  In the meantime, we will remain vigilant in defending the ability of our workers and businesses to compete on a fair and reciprocal basis.”

The proposed list and process for the public notice and comment period is set out in a Federal Register notice, which will be published within the next few days.  To view the notice, including the list of proposed tariffs on $200 billion of Chinese imports, click here.

Posted July 11, 2018

Source: USTR