WASHINGTON — August 22, 2012 — United States Trade Representative Ron Kirk today released a
statement welcoming Russia as the 156th Member of the World Trade Organization (WTO). 

“We congratulate Russia on joining the World Trade Organization.  Russia’s WTO
membership opens the door to increased opportunities for American companies to export and sell
products and services in Russia,” said Ambassador Kirk. “However, in order for American
manufacturers, workers, service providers, farmers and ranchers to take full advantage of Russia’s
WTO membership, Congress must act to terminate Jackson-Vanik and authorize permanent normal trade
relations for Russia.  As President Obama has said, he is committed to working with Congress
to pass this legislation as soon as possible, so American businesses will not be at a competitive
disadvantage in Russian markets.” 

On July 18, the Senate Finance Committee approved a bill terminating the application of the
Jackson-Vanik amendment and authorizing the President to extend Permanent Normal Trade Relations
(PNTR) to Russia.  On July 26, the House Ways & Means Committee approved a similar
bill.  Only when the United States and Russia can apply the WTO Agreement between them will
American businesses and workers be able to reap the full benefits of Russia’s WTO membership.



Posted on August 28, 2012

Source: USTR

Verdezyne Inc. — a Carlsbad, Calif.-based producer of chemicals from renewable, non-petroleum
sources — has been granted U.S. Patent No. 8,241,879 for its biobased adipic acid production
process. The patent, titled “Biological Methods for Preparing Adipic Acid,” presents a proprietary
process to selectively convert non-petroleum-based oils into adipic acid, which is a key ingredient
in the production of renewably sourced nylon 6,6 (N 6,6), thermoplastic resins and coatings.

The company opened a pilot plant to produce biobased adipic acid in November 2011
(See ”
Verdezyne
Opens Biobased Adipic Acid Pilot Plant In California,”
TextileWorld.com, December 6, 2011). The production process involves yeast
fermentation of non-food, plant-based oils and is targeted specifically for N 6,6 production. In
addition to environmental advantages that also include reduced emissions of carbon dioxide and
other pollutants during production, the biobased adipic acid is expected to offer economic
advantages when compared to petroleum-based adipic acid.

“Verdezyne’s proprietary process allows us to produce adipic acid at high yields and
selectively from any plant-based oil, regardless of its fatty acid composition — making the entire
process more cost-effective and environmentally friendly,” said Stephen Picataggio, Ph.D., chief
scientific officer, Verdezyne. “Since our feedstock position is not carbohydrate-based, we are also
not competing for sugar in the food or energy value chain.”

Verdezyne President and CEO E. William Radany, Ph.D., said the biobased adipic acid produced
using Verdezyne’s process is 99.99-percent pure and noted that the company has partnered with
another United States-based company to polymerize N 6,6 made with the biobased adipic acid and spin
the fiber into yarn for carpet applications. Verdezyne also is drafting definitive agreements to
conduct trials for apparel yarn.

“Our strategy is to demonstrate through our pilot work that we can manufacture adipic acid
that can meet all the quality criteria for polymerization and then spinning and dyeability, in
addition to demonstrating the economics of the process,” Radany said, calling it a “drop-in
replacement” for conventional adipic acid. Several N 6,6 manufacturers are interested in
incorporating biobased adipic acid into a 50-percent renewable fiber, but Radany noted that
Verdezyne also is developing a pathway to manufacture hexamethylenediamine, which would enable
production of 100-percent biobased N 6,6.

“There have been a number of chemical routes to do that, and we would like to develop a path
that is not chemical, but biological,” he said.

The company is exploring funding strategies to build a manufacturing plant that would be
located in close proximity to the product’s feedstock, including waste streams from soybean and
canola oil production in the Midwest.

August 21, 2012

Sustainability is one of the key words of the past as well as the present decade. The U.S.
Environmental Protection Agency defines sustainability as follows: “Sustainability is based on a
simple principle: Everything that we need for our survival and well-being depends, either directly
or indirectly, on our natural environment. Sustainability creates and maintains the conditions
under which humans and nature can exist in productive harmony, that permit fulfilling the social,
economic and other requirements of present and future generations. Sustainability is important to
making sure that we have and will continue to have, the water, materials, and resources to protect
human health and our environment.”

Environmental Consciousness

This definition is particularly important for cotton growers and the whole cotton trade. In
these times of increased environmental consciousness, cotton was and is very much in the focus of
nongovernmental organizations and a large number of people in terms of sustainable production and
processing along the production chain. The reasons are well-known. Even the big retailers around
the world are becoming more and more concerned about the sustainability and also the traceability
of the cotton products they buy.

A New Perception Is Needed

In the last few years, many prominent organizations have acknowledged this change in the
people’s minds. Even last year’s International Textile Manufacturers Federation (ITMF) conference
in Barcelona prior to ITMA Europe addressed the issue under the motto “New Paradigms in the Global
Textile Industry.” It was interesting to see that the audience discussed issues that were
unimaginable some 10 years ago. Water, food and power shortages; and reduced wastewater were just a
few of the topics discussed and presented in Barcelona.

The ICAC

Many other organizations are looking forward to further discussion of these issues,
including the Washington-based International Cotton Advisory Committee (ICAC), which was founded in
1939. At that time, global cotton stocks totaled nearly 25 million bales, more than half of which
were located in the United States. The ICAC’s mission is “to assist governments in fostering a
healthy world cotton economy. The role of the ICAC is to raise awareness, to provide information
and to serve as a catalyst for cooperative action on issues of international significance.” On its
website, the organization lists the following functions:

• provide statistics on world cotton production, consumption, trade and stocks and to identify
  emerging changes in the structure of the world cotton market;
• serve as a clearing house for technical information about cotton and cotton textiles;
• serve as an objective forum for discussion of cotton matters of international significance;
  and
• represent the international cotton industry before UN agencies and other international
  organizations.

Originally, only cotton-producing countries qualified for membership. Following the fourth
meeting, other nations having a substantial interest in cotton production, export or import were
invited to join the Committee. Today, member countries include Argentina, Australia, Belgium,
Brazil, Burkina Faso, Cameroon, Chad, Colombia, Côte d’Ivoire, Egypt, France, Germany, Greece,
India, Iran, Italy, Kazakhstan, Kenya, Korea, Mali, Mozambique, Nigeria, Pakistan, Paraguay, Peru,
Poland, Russia, South Africa, Spain, Sudan, Switzerland, Syria, Taiwan, Tanzania, Togo, Turkey,
Uganda, United States, Uzbekistan, Zambia, and Zimbabwe.

How To Shape Sustainability In The Cotton Value Chain?

Every year, the ICAC organizes a Plenary Meeting. This year’s event will take place October
7-12 at the Congress Centre Kursaal Interlaken, in Switzerland. The 71st Plenary Meeting of the
International Cotton Advisory Committee will also focus on sustainability: The theme of the
congress is “Shaping Sustainability in the Cotton Value Chain.”

According to the ICAC, the meeting “will provide an opportunity for government officials,
members of the Expert Panel on Social, Environmental and Economic Performance of Cotton Production
(SEEP), and representatives of the private sector to engage in a structured discussion of the
concept of sustainable development and how this concept can be applied to the world cotton.” The
main questions to be answered are:

How have cotton production and/or spinning, weaving, dyeing and finishing become “more
sustainable” in your country during in recent years?

What are the major challenges to improving the “sustainability” of cotton value chain
activities in your country?

What role does the government play in facilitating improvements in “sustainability?”

Traceability

But not only is sustainability significant. A new term appeared in the textile business some
time ago: “traceability.” It will be very important to know and to trace the long journey of cotton
to the retailers’ shelves. Expressions like “life cycle analysis,” “carbon footprint,” or even
“from cradle to grave” have become more prominent in the world of textile production. Suppliers
have to carry information about the source and production methods of cotton, and the cotton must be
traceable too. The customers want to know where the cotton products all come from and how they are
processed.

The Challenge Is Communication

The facts are well-known within the cotton industry among its insiders. The challenge is to
communicate the facts to the outside world, that is, the consumers. At last year’s ITMF conference,
former United Nations Secretary General Kofi Annan challenged the audience by saying that the
cotton industry is responsible for 25 percent of all pesticides used on this planet. He provoked
hefty reactions from the complaining audience and responded with a few words: “OK, go and tell us
the truth about it.”

More information about the ICAC’s 71st Plenary Meeting and the organization is available at
icac.org.

August 21, 2012

William H. “Bill” Hills Sr., one of the great pioneers in the synthetic fibers extrusion industry,
passed away on August 10, 2012, following a brief illness. Hills was a chemical engineering
graduate of Worcester Polytechnic Institute. He started his professional career in 1955 with the
Chemstrand Corp. — which later became the Fibers Division of Monsanto Co. — where he served in
technical and management capacities involving areas such as nylon fibers, spunbond technology and
metal spinning. Hills left Monsanto in 1971 to become a founder of Hills R&D — which later
became Hills Inc. — in West Melbourne, Fla. Hills led the company in the development and supply of
advanced fiber extrusion systems until he retired in 1988, and until recently remained interested
in contributing to various technical projects at the company. Hills was the inventor in numerous
patents that significantly contributed to the advancement of technology and to the fibers
industry. 

Arnold Wilkie, president and owner of Hills Inc., said: “We are all grateful for having had
the opportunity to know and work with Bill over the years. He was a great leader and friend. His
personal contributions to our company, industry and world will live forever.”