GENEVA — October 15, 2012 — Mexico notified the WTO Secretariat on 15 October 2012 of a request for
consultations with China concerning several measures allegedly taken by China to support the
production and exports of clothing and textile products. It said it had requested consultations
because China appears to maintain a wide variety of measures that support producers and exporters
of apparel and textile products, both directly and indirectly. It added that these measures appear
to involve both prohibited and actionable subsidies that are inconsistent with China’s obligations
under the Subsidies and Countervailing Measures Agreement, GATT 1994, the Agreement on Agriculture,
and China’s Accession Protocol.



Posted on October 29, 2012

Source: WTO

Are you, dear reader, one of the people who grew up in the business world writing letters and
sending telex messages? Were you astonished, too, when the fax machine sneaked into daily business
life? At that time, everyone was impressed and certain that this development was the peak of
electronic communication: Sending handwritten or typed messages and even pictures through the
telephone lines!

The WWW Explosion

In the very late 1960s, US researchers started to develop an electronic in-house
communication system, which in the future will probably lend its name to a new age of humankind.
The Internet — or, better to say, the World Wide Web — has become the global communication network
and changed the world forever. These days, most of the world’s population is connected virtually
via the Internet, and it’s common sense to have one’s own email address. Young people can’t imagine
a world without the Internet and emails. Moreover, the development of cheap cell phones accelerated
the age of fast, short and — sometimes useless — information. However, that wasn’t the end of the
electronic communication revolution — yet.

The Ultimate (?) Step: Twitter

And now, a further step has appeared in the center of the electronic communication: Twitter.
And, believe it or not, dear reader, it has been on the news, connected with the re-election
campaign of US President Barack Obama. The news said that during the second TV debate between
President Obama and his challenger Mitt Romney, 7.2 million messages — so called “tweets” — were
instantly posted online to comment on the event. Just to make it clear: 7.2 million tweets — this
means 110,000 tweets per minute. Quite amazing.

Beware Of Social Media

As the Rupp Report of last week wrote (see ”
The
Rupp Report: The Global Cotton Industry In Search Of A New Approach,”
TextileWorld.com, October 16, 2012):

In times of increased environmental consciousness, and especially in so-called
developed countries, people are asking more and more for green or sustainable production. In
addition to this increased environmental consciousness, there is the modern generation of
communication using social media such as Facebook or others to generate positive or negative
images. Due to this fact, big retailers around the world have started to think about “green or
sustainable products.” Many famous labels are producing and marketing sustainable products, or
claiming that their production sites follow sustainable, sound practices. Frankly speaking, many
times, after a check by a nongovernmental or other such organization, the results are more wishful
thinking than reality. This situation has led to some devastating misunderstandings among the
global customers — and a lack of trust.

Examples from the food industry of denial or hiding of information or providing
misinformation to the customers demonstrate that it doesn’t take long to build up a bad image. And
a bad image is the last thing that cotton needs for its future. As J. Berrye Worsham, CEO of Cotton
Incorporated, said in his opening presentation: “In the future, the customer will ask you about the
background of your cotton.” Probably, this is one of the key reasons why everybody started to talk
about sustainable products. Just remember social media!

Some readers have asked in face-to-face discussions whether the Rupp Report is not
exaggerating about this idea. Is it? Think about what can happen if your textile company has
troubles and becomes the target of a social media campaign.

Here are a few facts and figures to demonstrate the power of social media: It is estimated
that within six years, more than 150 million people will be using Twitter; with an ever-growing
tendency. Every registered user has “followers.” And President Obama is said to have 20 million
followers. But what exactly is Twitter? Frankly speaking, the Rupp Report didn’t know it, probably
just like many of its readers. According to Wikipedia, “Twitter is an online social and micro
blogging service that enables its users to send and read text-based messages of up to 140
characters, known as ‘tweets.'”

The idea was created and implemented in March 2006 by an American named Jack Dorsey. Today,
after Facebook, Twitter is probably the second most popular platform for social media. People —
sorry, the followers — can write messages containing not more than 140 characters. That’s not a
lot, you may say. However, 140 characters can destroy a good image in a fraction of a minute. It is
easy to use, and anybody can say what he or she wants. However, as a media professor from the
University of Zurich mentioned in a recent report on the radio news — yes, on the radio, most
active tweeters expect that their own views, or tweets, are confirmed by the followers.

The Fifth Dimension (?)

The classic definition of the separation of powers takes in three pillars: legislative;
executive; and judiciary. These three units are linked together by limitation of power and
liabilities so that they are committed to working together and under mutual control. The basic
understanding of this system was and is to create a balance among the different powers to reduce
and guarantee the risk of abusing power. However, many people describe the mass media to be the
fourth power. An since social media such as Facebook and Twitter came into being, law,
communication and media professionals are describing social media as the fifth power.

Does this mean that the traditional print media are in danger or that social media are the
archenemy of the print media? No, say the experts: Facebook or Twitter can only be complementary.
As a research study from the University of Zurich explains, traditional media products are not in
danger, because the social media are first of all not considered to be 100-percent faithful.
However, these media can produce a lot of damage, on the one hand because of their extreme speed
and because the messages are sent out without any control. A retweet can multiply the damage from
the original message by sending the message to all its own followers. On the other hand, one can
imagine how fast a misleading or wrong message can go around the world, especially if multinational
companies — and this includes textile companies — are in the spotlight of attention.

And Now?

Time can’t be turned back, that’s a fact. It is also useless to be upset or deny the
existence of social media. Having the textile community in mind, every individual in a leading
position should be aware of the consequences of his or her actions in a more-than-ever transparent
global market. The Rupp Report would invite its readers to share their own experiences with social
media by writing to
jrupp@textileworld.com. This message can be more than
only 140 characters.

October 23, 2012

Wichita, Kan.-based Invista’s Performance Surfaces & Materials business, which supplies bulked
continuous filament (BCF) nylon 6,6 to the carpet industry, is investing $20 million to optimize
production capacity across its North American manufacturing facilities.

Most of the investment will go toward increasing production at the company’s Camden, S.C.,
facility, and adding 50 jobs at that plant to support the expansion. Invista will add new equipment
and reconfigure existing equipment at the plant; will double production capacity of Antron® Lumena™
solution-dyed nylon with TruBlend™ fiber technology and produce a new line of 895-denier Antron
Lumena solution-dyed products for the commercial carpet industry; and will increase color
capabilities for those products.

The Camden facility’s proximity to Invista’s carpet mill customers in the Southeastern
United States played a role in the company’s decision to expand that location. The expansion is
expected to result in reduced lead times and shipping times for orders as well as increased order
flexibility.

The investment follows Invista’s announcement last year that it would expand nylon yarn
spinning capacity at its Kingston, Canada, manufacturing plant, to meet continued demand spurred by
growth of the airbag market. The Kingston plant also supplies BCF nylon 6,6 to the carpet industry;
however, Invista notes it most likely will cut back on Kingston’s carpet fiber production in
upcoming years, considering its focus on industrial yarn development at that plant and increased
carpet fiber production capabilities at the Camden plant.

October 23, 2012

W. CONSHOHOCKEN, Pa. — October 10, 2012 — ASTM International announces its new initiative as a
Program Operator for Product Category Rules (PCRs) and Environmental Product Declarations (EPDs),
which will provide the venue for developing PCRs and verifying EPDs.

As green and sustainability become more prevalent terms, and measurement systems and labels
more common, the need is growing to understand the real environmental impact of products from raw
material extraction to disposal and recycling. 

“The ASTM International program will provide scientifically based, quantifiable information
about product parameters such as resource consumption and ozone depletion, which will give both
businesses and consumers an understanding of a product’s real impact on the environment,” says
Timothy Brooke, vice president of certification, training and proficiency testing at ASTM
International. Through ASTM’s certification program, technical advisory committees will oversee the
development process for PCRs.

PCRs will detail the rules and guidelines for developing environmental declarations for
products that can fulfill equivalent functions. EPDs will be verified to ensure their adherence to
the ISO 14040 standards as well as to ensure that life cycle assessment data accurately describes
the environmental aspects of a product. ASTM International has developed its program in accordance
with ISO 14025 – Environmental Labels and Declarations – Type III Environmental Declarations –
Principles and Procedures.

Representatives of the roofing industry are already working with ASTM to develop PCRs. A
member of ASTM’s Committee D08 on Roofing and Waterproofing, Philip Moser, P.E., a building
envelope consultant at Simpson Gumpertz & Heger, Waltham, Mass., says, “Virtually every roofing
product on the market now touts its green benefits, but it is often difficult for the specifier,
contractor and building owner to evaluate the veracity and relevance of the marketing claims. Once
consensus-based PCRs are developed for the North American roofing industry, environmental
declarations can use a consistent format, and, more importantly, be based on a more consistent set
of calculations and assumptions. The end result is a win-win-win for responsible manufacturers, for
concerned professionals and consumers, and for the environment.”

In ASTM Committee E60 on Sustainability, a proposed standard practice will give guidance
about information that all PCRs should contain regardless of the product. “For example, one life
cycle assessment practitioner may assume that a product is sent to a landfill at the end of life
while another may assume that a product is incinerated. Different environmental impacts result from
these two different end-of-life scenarios. This standard will fill in many of the gaps that exist
in current life cycle assessment standards,” says Amy Costello, P.E., senior environmental
scientist at Armstrong World Industries Inc., Lancaster, Pa., an E60 member and a current member of
the ASTM board of directors.

Inquiries about developing new PCRs and verifying EPDs are welcome; please contact ASTM’s
Certification and Declarations Department at cert@astm.org or visit www.astm.org/EPDs for more
information regarding the ASTM International program.

Beyond its leadership in the area of standards development, ASTM International offers
technical training programs; proficiency testing and interlaboratory study programs; certification
programs and the supplier’s declaration of conformity program, which support manufacturers, users,
researchers and laboratories worldwide.



Posted on October 23, 2012

Source: ASTM
International

Mauldin, S.C.-based textile manufacturer Mount Vernon Mills Inc. has launched its flame-resistant
(FR) fabrics brand, Mount Vernon FR.

The brand, which displays the tagline “Wear it for life,” includes a range of FR protective
fabrics in six collections: AMTEX™ C100 100-percent cotton; AMTEX PLUS 88-percent cotton/12-percent
nylon blend; RESILIENCE® 80-percent cotton/20-percent Nomex® blend; RESILIENCE TRIO
cotton/Nomex/nylon blend; PHOENIX FR denim fabrics in various weights ranging from 7.5 to 14.75
ounces per square yard; and the MY•FR custom fabric program.

The fabrics’ FR performance is guaranteed for the useful life of the garment, and meets
various standards including NFPA 70E, NFPA 2112, EN ISO 11611 and EN ISO 11612.

Mount Vernon Mills recently more than doubled capacity at its vertically integrated
manufacturing facility in Trion, Ga., to meet increased demand it has seen for its FR fabrics over
the past year. The plant features in-house control of more than 25 major processes including
spinning, weaving, dyeing and FR finishing; utilizes more than 3,000 computer-monitored control
points; and performs extensive quality assurance testing.

October 23, 2012

Safety and protective fabrics manufacturer SSM Industries Inc., Spring City, Tenn., has expanded
the offerings in its Pro-CFR® Cotton line of flame-resistant (FR) cotton fabrics with the
introduction of Pro-CFR 12 Cal and Pro-CFR + TransDRY® fabrics.

The company reports Pro-CFR 12 Cal, at a weight of 6.25 ounces per square yard, is the
lightest-weight FR cotton fabric to register an arc thermal protection value (ATPV) of 12 calories
per square centimeter (cal/cm
²). The knit fabric is targeted to apparel for the utility industry, which has been
seeking a 12 cal/cm
² ATPV solution in a single garment, whereas such protection typically has only been
available through garment layering. Cleveland-based National Safety Apparel (NSA) is using SSM’s
new fabric in its FR Classic Cotton™ Knit line, a new collection of shirts offered in a range of
styles as well as colors.

Pro-CFR + TransDry, available in knit and woven constructions, features Cary, N.C.-based
Cotton Incorporated’s TransDry moisture management technology that is engineered into the fabric,
as well as a proprietary antimicrobial/anti-odor technology. Targeted to industrial, military,
fire-service and racing markets, the fabric is currently going into shirts manufactured by Summit
Work Apparel, Sugar Land, Texas.

Pro-CFR 12 Cal and Pro-CFR + TransDry fabrics, like the rest of SSM’s fabrics, are produced
completely in-house – from fabric formation through dyeing and finishing – at the company’s plant
in Spring City.

October 23, 2012

Pittsburgh-based Pro Towels — a provider of screen printing and embroidery services for promotional
products — will invest $2.5 million to expand its operations in Abbeville, S.C., adding 50 jobs in
the process.

The company will relocate from its existing 100,000-square-foot (ft
²) facility to a new 300,000-ft
² facility that will house its offices, warehouse and production. The increased space
will enable the company to add equipment and expand its apparel decorating business to the East
Coast. Pro Towels’ apparel decorating operations currently are run out of its Superior Decorating
division located in California.

“We are excited to expand our operations in Abbeville County,” said Kevin Nord, president,
Pro Towels. “We’ve seen demand from our customers increase recently and we need to grow our
operations to meet that demand. South Carolina has provided us with an excellent business
environment and a skilled workforce for years. We appreciate all the support we’ve received from
state and local officials.”

Pro Towels reports it soon will begin hiring for the new positions.

October 23, 2012

James Heal, a United Kingdom-based textile testing laboratory instruments and test materials
manufacturer that this year is celebrating 140 years in business, recently received the Queen’s
Award for Enterprise in International Trade. The award, which recognizes accomplishments in the
area of export sales, is the second award of that type the company has received, having earned the
Queen’s Award for Export Achievement in 1995.

The award was presented by the Lord-Lieutenant of West Yorkshire Dr. Ingrid Roscoe to James
Heal Managing Director David Repper during a special celebration. “This is a great honour and a
tribute to the diligence and dedication of over 100 employees and many individuals and companies
who have contributed to this achievement,” said Repper, who followed his father into his leadership
position at the family-owned company in 1992.

The company reports it has experienced a significant growth in revenues over the past three
years, with global markets representing a considerable portion of that growth. It maintains a
network of local agents and distributors that help it sell its products and services in more than
60 countries around the world.

Founded in 1872, James Heal comprises four core divisions: Testing Instruments; Test
Materials; Service and Calibration; and Technical Assistance. All products are manufactured
in-house. The company’s customer base includes major brands and retailers including Marks &
Spencer, Louis Vuitton, Next and most of the major automobile manufacturers worldwide.

October 23, 2012

WASHINGTON — October 22, 2012 — Today, United States Trade Representative Ron Kirk and Ricardo
Quijano, Minister of Commerce and Industry of the Government of Panama, exchanged letters in which
they determined that the United States-Panama Trade Promotion Agreement (Agreement) will enter into
force on October 31, 2012. This announcement follows completion of a thorough review by the United
States and Panama of their respective laws and regulations related to the implementation of the
Agreement.

Ambassador Kirk welcomed the decision to have the Agreement enter into force on October
31.  “Under this comprehensive Agreement, Panama will eliminate tariffs and other barriers to
U.S. exports, which will promote economic growth, and expand trade between our two countries. 
This Agreement also provides U.S. firms and workers improved access to customers in Panama’s $22
billion services market, including in areas such as financial, telecommunications, computer,
express delivery, energy, environmental, and professional services,” he said.  “Panama is one
of the fastest growing economies in Latin America, expanding 10.6 percent in 2011, with forecasts
of between five to eight percent annual growth through 2017.  That adds up to support for more
well-paying jobs across the United States,” said Ambassador Kirk. “The increased access to this
expanding market is backed by the Agreement’s strong enforcement provisions.”

After entry into force of the Agreement, Panama will immediately reduce or eliminate tariffs
on U.S. industrial goods, currently averaging seven percent, with some tariffs as high as 81
percent.  Over 86 percent of U.S. exports of consumer and industrial products to Panama will
become duty-free immediately, including information technology equipment, agricultural and
construction equipment, aircraft and parts, medical and scientific equipment, environmental
products, pharmaceuticals, and fertilizers.  Additionally, U.S. agricultural exports will also
benefit from this Agreement.  U.S. agricultural goods currently face an average tariff of 15
percent, with some tariffs as high as 260 percent.  Nearly half of U.S. exports of
agricultural commodities to Panama will immediately become duty-free, including wheat, barley,
soybeans, high-quality beef, bacon, and almost all fruit and vegetable products, with most of the
remaining tariffs to be eliminated within 15 years.

As noted, the Agreement will also provide significant new access to Panama’s $22 billion
services market, supporting increased market opportunities for U.S. service providers.  For
example, Panama agreed to eliminate measures that prevented firms from hiring U.S. professionals,
and to phase-out market restrictions in cable television.  The Agreement also includes
important disciplines relating to customs administration and trade facilitation, technical barriers
to trade, government procurement, investment, telecommunications, electronic commerce, intellectual
property rights, and labor and environmental protection.

Panama’s strategic location as a major shipping route also enhances the importance of the
Agreement.  Approximately two-thirds of the Panama Canal’s annual transits are bound to or
from U.S. ports.



BACKGROUND

President Obama signed the United States-Panama Trade Promotion Agreement Implementation Act
into law in the United States on October 21, 2011.  The United States-Panama Trade Promotion
Agreement is an important part of President Obama’s effort to increase opportunities for U.S.
businesses, farmers, ranchers, and workers through improved market access for their products and
services abroad.  Along with the trade agreements with Korea and Colombia, which entered into
force earlier this year, the agreement with Panama supports the President’s goal of doubling of
U.S. exports to support well-paying jobs at home.  The Agreement will also enhance the
competitiveness of both small and large U.S. businesses in Panama’s growing economy.  U.S.
goods exports to Panama in 2011 were $8.2 billion. The Agreement includes strong protections for
workers’ rights.  In addition, from 2009 to 2011, the Government of Panama took a series of
legislative and administrative actions to further strengthen its labor laws and enforcement in a
number of areas.  The Administration will continue to work with Panama to ensure that all of
these important initiatives are effectively implemented.Additional information related to the
Agreement is available at http://www.ustr.gov/uspanamatpa.



Posted on October 22, 2012

Source: USTR