Last week, the Senate Finance Committee and the House Ways and Means Committee held mock markup
sessions for free trade agreements (FTAs) between the United States and Colombia, South Korea and
Panama. Both committees approved the pacts, which were signed in 2006 and 2007 and are expected to
be submitted by the Obama administration for congressional approval in the near future, but there
is partisan disagreement regarding the issue of whether or not to include within the U.S.-Korea FTA
(KORUS) extension of Trade Adjustment Assistance (TAA) for workers, businesses and farmers impacted
by increased trade.

TAA was created in 1962 and subsequently amended in 1974 and 2002. In 2009, the program was
further expanded as part of the Recovery Act, and the 2009 provisions expired in February of this
year. In negotiations involving the Obama administration and House and Senate leaders to extend
TAA, provisions have been reduced to 2002 levels and in some areas have been reduced even below
those levels, with complete expiration of the program slated at the end of 2014. Democrats in
Congress want to tie the extension to KORUS, while Republicans want TAA to be treated in separate
legislation.

At the same time, there is widespread bipartisan support for the three FTAs, which are seen
as instruments to increase U.S. export trade, and leaders of both committees have warned that while
the United States delays implementation of these agreements, the U.S. jobs they purportedly will
create will go instead to workers in other countries and regions that have signed FTAs with these
countries — most notably, the European Union, which has just implemented a FTA with South Korea;
and Canada, whose FTA with Colombia will be implemented in August.

The Senate Finance Committee, with its Democratic majority, approved the agreements with the
inclusion of the TAA extension in KORUS; while the House Ways and Means Committee, with its
Republican majority, approved them without the TAA extension, and there was no provision made for
moving TAA forward. Votes in both committees were divided along partisan lines. At present, it is
not clear whether the House will ultimately support the Obama administration’s objective of
presenting a package for approval that includes both the FTAs and TAA.

The U.S. textile industry has issues with KORUS but supports the Colombia and Panama pacts.
The National Council of Textile Organizations (NCTO) has been quite vocal in its opposition to
KORUS, charging that rather than creating jobs in the textile and apparel industry, that FTA will
destroy jobs — as many as 40,000 jobs directly and indirectly tied to textiles and apparel, but
also 159,000 jobs overall — because U.S. and Korean textile products are not treated equally under
the agreement and the removal of certain textile enforcement measures will enable significant
illegal transshipments of Chinese-made goods.

“It is disconcerting that at a time of economic uncertainty that the U.S. Congress is
choosing to move forward on the Korea FTA which is a flawed trade agreement that will cause
significant jobs losses in the U.S. textile and apparel sectors,” said NCTO President Cass Johnson.
“Our industry is one of the few that has continued to add jobs over the last year. The Korea FTA
puts these jobs and future jobs in serious jeopardy,” he said, referring to the 2,500 direct and
7,500 indirect jobs created in the sector in the last year.

“We urge members of Congress who are concerned about textile jobs in their districts to vote
‘No’ on this agreement,” Johnson added.

U.S. retailers and importers have a slightly different viewpoint regarding KORUS, and both
the National Retail Federation (NRF) and the American Apparel & Footwear Association issued
statements supporting all three FTAs and urging quick passage of legislation that would implement
them.

“Making it easier for U.S. companies to export their goods overseas creates U.S. jobs,” said
NRF President and CEO Matthew Shay. “That puts more spending power into the hands of American
families and increases consumer demand in a way that is a win-win for both the United States and
our trading partners. Congress needs to complete work on this legislation and allow these
agreements to take effect as soon as possible to let our business and workers begin to benefit from
their provisions.”

Shay further noted that approval of these FTAs “will break a logjam on trade legislation in
Congress that has blocked a number of other important trade bills from moving forward,” mentioning
in particular renewal of the Generalized System of Preferences program. “We are hopeful that
Congress is ready to become fully engaged on trade and will work aggressively to further expand
trade opportunities and make it easier for retailers to import merchandise to meet U.S. consumer
demand,” he continued.

“The U.S. apparel and footwear industry is able to maintain its competitive edge in the
global marketplace when we reduce barriers to trade,” said AAFA President and CEO Kevin M. Burke.
“Along with the passage of the pending free trade agreements, we look forward to immediate and
retroactive renewal of the Andean Trade Preferences Act (ATA), the Generalized System of
Preferences (GSP), and Trade Adjustment Assistance (TAA). Creating certainty and opportunities for
growth will enable our industry, and the more than one million U.S. workers we employ, to continue
delivering quality, safe, and affordable clothing and shoes to hardworking American families.”

July 19, 2011

Faribault, Minn.-based Faribault Woolen Mill Co. — a vertically integrated manufacturer of woolen,
cashmere, Ingeo™ and other woven goods for the retail, hospitality and healthcare industries as
well as private-label manufacturing — has been purchased by former Dairy Queen International Inc.
CEO Chuck Mooty and his cousin and business partner Paul Mooty.

Established in 1865, Faribault Woolen Mill is Minnesota’s oldest manufacturing company and at
one time was the largest manufacturer of wool blankets in the United States. The Mootys have
acquired the mill, which was shuttered in July 2009, with the hope of re-establishing viable
production of wool products in the United States, and particularly Minnesota.

“This is a story about the revival of American excellence,” said Chuck Mooty. “The art of
manufacturing textiles should be retained by our country, particularly during a time when our
economy is so challenged with unemployment.”

Chuck Mooty will serve as president and CEO of Faribault Woolen Mill, and Paul Mooty will
become CFO. Chuck Mooty’s son, John Mooty, will head the company’s marketing department, and
additional family members are expected to take on other company responsibilities. The company also
plans to add more employees, including former Faribault Woolen Mill workers.

Production at the mill is expected to resume in August. The Mootys are currently assembling
their in-store and online retail services, and will market and sell product through hospitality,
health care, government and specialty design channels.

“We have a challenge in front of us to make this company relevant and economically viable,
but that is the beauty of this undertaking,” Mooty said. “What a fun challenge to rejuvenate a
community, a piece of history, a slice of a domestic industry and execute in a way which brings
pride, employment and fulfillment back into the lives of so many.”

July 19, 2011

The Institute of Environmental and Human Health (TIEHH) at Lubbock, Texas-based Texas Tech
University (TTU) has received a $1.1 million research award from the U.S. Army Research,
Development and Engineering Command to continue funding the Admiral Elmo R. Zumwalt Jr. National
Program for Countermeasures to Biological and Chemical Threats. The funding enables researchers at
TIEHH, TTU and the TTU Health Sciences Center to further enhance and leverage technologies that
Zumwalt researchers have developed, including the Fibertect® nonwoven decontamination wipe, which
has received $90,000 for one year.

Fibertect was developed in 2005 by Dr. Seshadri Ramkumar, manager of the Nonwoven and
Advanced Materials Laboratory at TIEHH, and a team of research scientists to meet the Department of
Defense’s need for a wipe that would absorb and neutralize gases and liquids that might be used in
chemical warfare. The process to make Fibertect has since received a U.S. patent and is now used by
the U.S. military to manufacture a low-cost decontamination wipe. Last year, the TIEHH team
re-engineered the wipe — which is made from raw cotton and carbon — to soak up oil in the Gulf of
Mexico following the explosion and sinking of BP’s Deepwater Horizon oil rig off the coast of
Louisiana in April 2010.

The continued support will help researchers develop more applications for Fibertect. “One of
the objectives that the Army’s Research, Development and Engineering Command encourages is for us
to take these technologies we develop for military applications and make them commercially viable
where they can transfer to the civilian population for responders on the domestic side,” said Steve
Presley, research coordinator for the Zumwalt program. “The post-9/11 world has kind of matured,
and there are always newer threats. It’s always evolving. One role that the Zumwalt program plays
is to help the military adapt to the changing threat landscape.”

July 19, 2011

Researchers at Raleigh, N.C.-based North Carolina State University’s (NCSU’s) Textile Protection
and Comfort Center (T-PACC) have received a $1 million, two-year grant from the Assistance to
Firefighters Grants (AFG) Program to develop new testing technologies for evaluating the thermal
protective performance and comfort of materials used in wildland firefighter gear. AFG — a program
administered by the U.S. Department of Homeland Security’s Federal Emergency Management Agency —
provides funding for firefighter safety research and development.

According to Dr. Roger Barker, T-PACC director and lead researcher on the project, new
flame-resistant fibers and fabrics are providing more thermal protection in firefighting gear than
older materials, but also sometimes have made clothing more uncomfortable, especially if added
fabric layers make the suit thicker and less breathable. One concern is that wildland firefighters
experience heat stress from wearing suits that trap body heat possibly for extended periods of time
and under extreme weather conditions.

“With wildfires, we’re not just talking about direct exposure to the flame, but also the
radiant heat coming off flames,” Barker said. “It’s a different kind of exposure — we’re exchanging
less heat intensity for longer periods of exposure — so using PyroMan™ wouldn’t help us in
addressing the particular problems wildland firefighters face,” he added, referring to the
state-of-the-art mannequin T-PACC currently uses to study garment and body reaction to intense heat
and flames.

As part of their R&D effort, NCSU researchers are working to develop RadMan™, an
instrumented mannequin specifically designed to evaluate radiant heat exposure. The mannequin will
be exposed to indirect radiant heat for up to several minutes, whereas PyroMan is only exposed to
direct flames for three to 10 seconds.

The NCSU team also will utilize T-PACC’s comfort research capabilities, including an advanced
sweating mannequin that measures the heat stress potential of wildland firefighter protective
clothing. In addition, wildland firefighters will participate in wear trials of gear in T-PACC’s
climate-controlled chamber to measure the comfort level of various outfits. The new testing methods
and knowledge will then be used to help the National Fire Protection Association revise its
standards for wildland firefighter ensembles.

July 19, 2011

ANKARA, Turkey — July 15, 2011 — This week, Assistant United States Trade Representative for Europe
and the Middle East L. Daniel Mullaney and Turkish Deputy Undersecretary of the Ministry of Economy
Cemalettin Damlaci co-chaired the eighth annual meeting of the U.S.-Turkey Trade and Investment
Council.  The Council meets under the auspices of the 1999 bilateral Trade and Investment
Framework Agreement (TIFA). 

“The United States greatly values its economic relationship with Turkey, which is a key
strategic partner in this region of the world,” said Mullaney. “These annual meetings allow us to
work together to overcome obstacles to increased trade and investment and to pursue actions to
improve economic integration. We are working hard to fulfill President Obama’s commitment to
enhance our bilateral trade and investment ties and to seek out new ways to pursue with Turkey our
mutual goals in the Middle East and North Africa.”

During the Council meeting, held on July 13 in Ankara, Turkey, the United States and Turkey
pursued various mechanisms for expanding their growing trade and investment relationship, including
joint support for small and medium sized exporters, regulatory and intellectual property support
for innovative industries, shared priorities in third countries, and deepened ties between the U.S.
and Turkish private sectors.  They also agreed to a fall inaugural meeting of the U.S.-Turkey
Business Council, an important mechanism for ensuring private sector input into increasing trade
and investment. 

The TIFA Council is also a key step in preparations for the second formal meeting, envisioned
for later this year, of the U.S.-Turkey Strategic Economic and Commercial Cooperation (FSECC)
dialogue.  The FSECC was inaugurated in December 2009 by U.S. Trade Representative Ron Kirk
and Secretary of Commerce Gary Locke with their Turkish co-chairs, Deputy Prime Minister Ali
Babacan and Minister for Economy Zafer Caglayan.

Mullaney was accompanied by Deputy Assistant Secretary of Commerce for Europe and Eurasia
Juan Verde and other officials from the Office of the United States Trade Representative (USTR) and
the Departments of Commerce, Agriculture and State.  At the meeting, senior government
officials discussed a full range of trade-related issues, including intellectual property rights,
steps to enhance the investment climate, biotechnology, pharmaceuticals, and government
procurement.

BACKGROUND

Two-way trade (exports plus imports) between the United States and Turkey was valued at
$14.8  billion during 2010, representing the U.S.’s 35th largest goods trading relationship.
While U.S.-Turkish trade was sharply impacted by the economic downturn in 2009, U.S. exports to
Turkey increased by 51.5% to $4 billion in 2010.  U.S. imports from Turkey in 2010 were $4.2
billion, up 14.8%. Leading U.S. exports to Turkey include aircraft, iron, steel, machinery and
fabric, in addition to a wide range of agricultural products. Turkey predominantly exports
vehicles, machinery, cement, and tobacco to the United States.

U.S. foreign direct investment (FDI) in Turkey amounted to $6.3 billion in 2009, mostly
concentrated in the wholesale trade and manufacturing sectors, while Turkish FDI in the United
States was $218 million in 2007 (latest figures available).

Posted on July 19, 2011

Source: USTR

ATLANTA — July 13, 2011 — Home Textiles Sourcing Expo welcomes eleven Egyptian companies exhibiting
in conjunction with the Egyptian Home Textile Council. The second edition of Home Textiles Sourcing
Expo takes place July 19 – 21 at the Javits Convention Center in New York City and is co-located
with Texworld USA, the largest apparel fabrics show in North America.

In addition to the Egyptian pavilion on the show floor, sourcing from Egypt is also
incorporated into the show seminar program. On Tuesday, July 20, Dr. Ashraf El Rabiey – Consul,
Head of the Trade Office of Egypt in New York is giving a presentation on
How to Source Duty-Free Textiles from Egypt.

The seminar is organized by Home Textiles Sourcing Expo supporting partner Lenzing Fibers and
provides attendees with the opportunity to learn about the Egyptian economy and the current
political situation. Insights are offered regarding how to promote business among US and Egyptian
partners as well as an update on the home textile and garment industry in the country. Information
will be provided regarding how U.S. companies can source duty free textiles from Egypt. The
qualified industrial zones protocol among the U.S., Egypt and Israel as well as the agreements
linking Egypt with other trade partners is also on the agenda to be discussed.

By participating in Home Textiles Sourcing Expo, Dr. El Rabiey seeks to assure sourcing
professionals that “Egypt is definitely open for business. In fact, we are all very happy with the
continuous increase in U.S. imports of home textiles and clothing since the revolution as well as
the execution of all shipments on time. This is the first trade show in New York that Egypt is
participating in since the revolution and we are all very excited and keen on making it a success.”

Egyptian cotton and home textiles including bed linens and towels are already well-perceived
in terms of quality and style by American consumers. Egyptian companies participating in the July
2011 edition of Home Textiles Sourcing Expo include:

 

Artline, Booth 3306

Artline offers high quality embroidered fabrics for curtains, sofas and wall hangings. Their
products are created using the finest fabrics including velvet, silk and taffeta. Artline’s
commitment to quality starts with the finest yarns which contribute to the inspired product. A team
of skilled designers and illustrators proficient in the latest global creative design programs
ensure creative, varied designs suitable for all tastes. Their investment in the latest types of
embroidery machines results in remarkable quality and special production capabilities including;
embroidery with crystals, embroidery with sequins and embroidered appliqués. Artline also offers
hand embroidery.

Bait Almotrazat, Booth 3308

Bait Almotrazat uses the finest types of Egyptian cotton raw materials, incorporating new
colors and unique designs to be up-to-date. An emphasis on building a relationship with the
customer ensures a high quality final product. They specialize in 100% cotton bed sheets and covers
with custom embroidery.

EL Telawy Group, Booth 3310

The EL Telawy Group has expertise in coverlets. They specialized in producing the best
quality of embroidered and printed coverlets, quilts and bead spreads with fashionable new prints
using high quality cotton materials. They pride themselves on their ISO 9001 certification.

Hesham Tex Co., Booth 3211

Top retailers in Spain, Italy, Romania, France, Germany, Belgium, Russia and the Arabian Gulf
are already familiar with Hesham Tex Co. towels and bathrobes. They make and manufacture all types
of towels including beach towels, kitchen towels, face, hand and bath towels as well as their
sought-after bath robes. All products are 100% Egyptian cotton and Hesham Tex also currently holds
an ISO9001 certificate of quality and the ISO18001 Certificate of Occupational Health and Safety.

Kozman Textile Group, Booth 3201

Kozman Textile Group is one of the leading manufacturers of home textiles in Egypt. Their
impressive collection includes upholstery fabrics in natural silk, velvets, cotton and chenille;
jacquard curtains in organza, voile, cotton and linen; plain fabrics for outdoor applications and
embroidered curtains. Kozman is already well known among high end retailers in Egypt and they are
eager to enter U.S. department stores.

Mahmoud Hamed EL Ghannam Textile Factory, Booth 3326

Established in 1984 and equipped with thirty-six high-tech looms, Mahmoud Hamed EL Ghannam is
an established resource for kitchen and bath towels, offered in flat and terry styles. Their
technicians are experienced in working with jacquard and dobby

looms. Table cloths are also available. All products are made of 100% pure Egyptian cotton.

Nile Textile Industries S.A.E., Booth 3300

Nile Textile Industries S.A.E. is highly qualified in making 100% cotton home textiles
including: bath towels, beach towels in jacquard and velour, hotel towels including vat dyed pool
towels, terry and waffle bath robes. They also offer percale and sateen bed sheets up to 600 thread
count.



Pyramids Free Zone, Booth 3219

Pyramids Free Zone is a manufacturer of terry products, including wash cloths, hand and bath
towels, bath sheets, beach towels, hotel and spa towels (with or without company logos), hospital
towels, dobby or jacquard designed towels, embroidered towels, bath robes, hair towel wraps, baby
terry products and towels with or without borders, in all color palettes and designs. They
specialize in terry products woven on dobby and jacquard looms such as bath towels in all sizes,
bath robes, terry blankets, beach towels, and embroidered terry products.

United Textiles, Booth 3312

Nature’s gift of lustrous cotton to Egypt inspires their collections of cotton, polyester and
blended yarn produced in open end and ring spinning systems. They offer terry towels and bath robes
made of pure Egyptian cotton in solid, dobby and jacquards. Weights vary from 350gm/m2 to
1500gm/m2. The scope of their capabilities is impressive and spans both woven and knit goods. Woven
fabrications available include plain weave, dobby, jacquard, herry, duck, twill, drills, corduroy,
satin, micro stripe, micro check satin band, percale and oxford.

The Egypt Home Textile Export Council and the Egypt Expo & Convention Authority (EECA)
welcome all interested parties to learn more about the quality products and unique production
capabilities of the Egyptian mills by visiting their Booth 3207.

July 2011

Home Textiles Sourcing Expo is the only U.S. event solely focused on fabrics and finished
soft goods for all home applications. The second edition of Home Textiles Sourcing Expo will take
place July 19 – 21, 2011 at the Javits Convention Center in New York City. The event will feature
fabrics and finished soft goods from more than 134 exhibitors.

For further information, please visit
www.HomeTextilesSourcing.com.

Posted on July 19, 2011

Source: Messe Frankfurt