WASHINGTON, D.C. — June 24, 2011 — The United States and its TPP partners — Australia, Brunei
Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam — concluded the seventh
round of negotiations today in Ho Chi Minh City, Vietnam, making further step-by-step progress
toward their goal of reaching the outlines of an ambitious, 21st century agreement by the APEC
Leaders’ meeting in November.  

As at the previous round in Singapore, the TPP countries extended the length of the round in
Vietnam to ensure the teams had sufficient time to make meaningful progress in all areas of the
negotiation. The additional time was helpful in producing the good progress that was achieved in
further developing the detailed legal texts of the agreement, which encompass all areas of their
commercial relationships. During the week, the countries reviewed new proposals that the United
States and other TPP countries tabled this round; including on intellectual property, transparency,
telecommunications, customs, environment; and advanced their efforts to consolidate the various
proposals that the countries put forward in previous rounds. They also sought to further clarify
their understanding of each other’s positions and continued the rigorous process of finding
mutually-acceptable ways to address the specific sensitivities of each country.  

Among the issues on which the teams had particularly productive discussions were the new
cross-cutting issues that will feature for the first time in the TPP. After consulting internally
on the U.S. text tabled at the sixth round, they furthered their efforts to find common ground on
the regulatory coherence text intended to make the regulatory systems of their countries operate in
a more consistent and seamless manner and avoid the types of regulatory barriers that are
increasingly among the key obstacles to trade. The teams also had constructive discussions on
approaches to development in the TPP and the importance of ensuring that the agreement serves to
close the development gap among TPP members.  

While making continued progress on the texts across all the negotiating groups, the nine
teams also furthered their work on the accompanying commitments on access to each other’s markets
for goods, services, and government procurement.  They made further headway in Vietnam in
their discussions on services, investment, and government procurement, and on product specific
rules of origin. They also discussed their respective requests and offers on industrial goods,
agriculture, and textiles, working to close gaps in their positions. The nine teams reviewed in
detail each country’s offers and possible approaches to achieving their common goals of producing
the most ambitious package possible, supporting the creation and retention of jobs, and promoting
regional integration.    

In order to accelerate the process, the TPP countries agreed to redouble their efforts in the
months ahead. They agreed to intensify their interssessional work, including consulting on existing
proposals internally, providing revised offers on the various market access areas, and working to
develop proposals to address outstanding issues. In addition, the teams agreed to identify issues
on which to focus at the next round in the United States in early September, and to seek to reach
agreement on as many of those issues as possible at the next round. To begin this work, several
members of the U.S. negotiating team will travel to Hanoi, Vietnam and Kuala Lumpur, Malaysia next
week. The U.S. team also is working to prepare additional legal text by the next round, and as it
does so it will continue consulting closely with Congress and
stakeholders.        

Prior to the start of the formal negotiating round, Vietnam hosted 140 stakeholders
representing business, civil society, and academic groups.  Stakeholders from the United
States and other TPP countries made presentations on a wide range of issues. On June 23, the
Vietnamese delegation hosted a workshop to discuss Vietnam’s labor law and the efforts it has
underway to strengthen the labor code and trade union law.  

Posted on June 28, 2011

Source: USTR

LOS ANGELES — June 27, 2011 — The U.S. Department of Commerce and MAGIC are hosting an Americas
Pavilion and Summit — “Sourcing in the Americas” — to highlight the United States and Western
Hemisphere supply chain network. “Sourcing in the Americas” will showcase apparel, footwear, fabric
and yarn mills, trims/component suppliers, and service providers, as well as promote business and
investment in the Western Hemisphere. This summit brings together the U.S. Department of Commerce’s
Office of Textiles and Apparel (OTEXA) and the Office of the U.S. Trade Representative (USTR),
along with endorsement and support from major U.S. and Western Hemisphere textile, apparel and
footwear associations. Exhibitors in the Pavilion will include Denima Trix, Buhler Yarns, Fessler,
Kaltex and more.

“Sourcing at MAGIC is the optimal platform to address the Western Hemisphere supply chain
and highlight the Americas as the emerging leader for sourcing opportunities,” said Chris DeMoulin,
MAGIC International President and Executive Vice President of Advanstar’s Fashion Group.

Obama Administration official Mr. Francisco Sanchez, Under Secretary for the International
Trade Administration, U.S. Department of Commerce will be a keynote speaker. Sanchez will address
the Western Hemisphere regional textile and apparel supply chain, and as part of the National
Export Initiative (NEI), will highlight export successes and potential opportunities for U.S.
fiber, yarn and fabric manufacturers. 

“I am pleased to participate in this dynamic collaboration between MAGIC, Commerce, USTR the
coalition of industry associations and the companies involved in the regional supply chain,” said
Sanchez. “Full sourcing in the Western Hemisphere underscores the key elements of quality, speed,
flexibility and availability which are cornerstones shaping the competitive advantages of sourcing
in the region.”

“Sourcing in the Americas” will feature exhibitors representing the entire America supply
chain and a series of seminars with top import suppliers and executives, as well as U.S. government
decision makers. Highlights include:

The New Western Hemisphere Supply Chain — Way Beyond the Basics Sourcing Summit
(Sunday, August 21 2:00 p.m. – 4:00 p.m.) — The Western Hemisphere Sourcing Summit will bring key
sourcing executives to hear from brands, manufacturers and experts regarding the new opportunities
for sourcing in the Western Hemisphere. Successful supply chain performers will present examples of
the “New Western Hemisphere Supply Chain” during a panel discussion and new data will be presented
to showcase the region’s competitive advantage. Whether it’s speed to market or a competitive cost
structure, the Western Hemisphere is an emerging leader for sourcing opportunities. Obama
Administration official Mr. Francisco Sanchez, Under Secretary for the International Trade
Administration, U.S. Department of Commerce will be a keynote speaker.

“National Export Initiative & Sourcing in the Americas” Seminar (Monday,
August 22 10:00 a.m. – 11:00 a.m.) — A special one hour seminar that highlights the U.S. National
Export Initiative (NEI) and the Western Hemisphere. The seminar is open to all MAGIC participants
and includes panel discussions with leading manufacturers and producers in the region, a new
analysis of Western Hemisphere supply chain costs and a roll-out of a DR-CAFTA sourcing database.

Posted on June 27, 2011

Source: MAGIC/PRNewswire

For many months now, the Rupp Report has informed its readers about the volatile development in the
global cotton markets and cotton prices. As everybody in the trade knows, these prices are causing
a lot of problems for many countries that have a strong dependence on cotton.

At several exhibitions and meetings over the past few months, subscribers and readers from
all over the world have expressed their wish to be informed frequently about the development of the
cotton markets and its prices, especially in these critical times. So here are the developments of
the past few weeks since the last Rupp Report about cotton in May 2011 (See ”
The
Rupp Report: Rollercoaster Cotton,” www.
TextileWorld.com, May 10, 2011). As usual, these cotton reflections are based
on various sources, mainly from the British traders Plexus Cotton Ltd., but also from organizations
such as the International Cotton Advisory Committee (ICAC) in Washington and the Bremen Cotton
Exchange in Germany.

Two Different Markets

On May 26, Plexus reported: “NY futures closed again mixed this week, but this time it was
July that dropped 462 points to close at 151.03 cents, while December rallied 838 points to close
at 127.57 cents.

“After the July/Dec inversion grew from less than 21 cents to over 38 cents a week ago, it
has once again started to come in, closing today at less than 24 cents.”

As Plexus noted: “It seems as if we were dealing with two different markets at the moment! On
the one hand there is current crop …, with delays, cancellations and high-priced inventories ….
On the other hand there is new crop, which is getting a lot of support due to the uncertainty in
some key growing areas after a less than ideal start.

Furthermore, Plexus reported, US export cancellations of 62,300 running bales more than
offset new sales of 29,300 bales for current crop and 21,800 bales for next marketing year,
providing an impression that the markets are calming down. In addition, there was a slowdown in the
shipments of 285,700 running bales. So the question became apparent: “How many of the outstanding
3.1 million bales in commitments will ultimately be exported by the end of July [from the United
States]?”

Up Again And Export Problems

Then, on June 2 came this report: “NY futures moved sharply higher this week, with July
rallying 1321 points to close at 164.24 cents, while December gained 1266 points to close at 139.23
cents.” And in West Texas the weather was still very dry. Plexus reported: “It is difficult to
estimate where exactly the US crop stands today, because there is still time to rectify some of the
problems, but unless we see an immediate improvement we are afraid that the US crop won’t yield
much more than 16.5 million bales.”

This projection of a smaller US crop would certainly cause some export problems, Plexus
noted. “The US has already committed around 5.8 million statistical bales for export next season,
which compares to just 1.4 million bales of forward sales of the previous year. Combined with the
3.8 million bales in domestic mill use, the total number of bales owed is therefore approaching the
ten million mark or roughly 60% of potential production. This means that shippers will be forced to
step on the breaks in regards to additional sales ….

“However, judging from past experience, other cotton-growing countries are not quite able to
jump on the bandwagon in a very short time. They simply don’t have the same logistics capabilities
as the United States, which is able to export some 400,000 to 500,000 bales weekly. Therefore,
Plexus warned, buyers who still have to fill third and fourth quarter commitments should not wait
too long to place orders.

Food Is The Major Competitor

Based on the June 2 numbers, Plexus noted that many cotton traders still believe prices will
fall back to a longer-term average. This could be, but food crops offer strong competition: Growers
get US$7 for a bushel of corn and US$14 for soybeans. It seems to be a tough job for cotton to
remain competitive. As Plexus noted: “As long as food prices remain high, cotton will have to be
attractively priced as well. A growing world population and rising protein consumption combined
with the fact that more food is being used to produce energy and to feed livestock should all but
guarantee that corn and soybean prices will remain at elevated levels for years to come.”

The Change

But over the next two weeks, there was a sharp drop in New York futures, with July falling a
total of 1,828 points by June 16 to close at 145.96 cents, and December falling a total of 1,905
points to close at 120.18 cents. There are a few reasons outside the cotton trade that are
influencing this development: for example, the uncertainty with the euro, including the Greek debt
crisis. Probably other countries will follow, as has been mentioned in all important financial
newspapers.

However, according to Plexus, “demand in the physical [cotton] market has basically been
non-existent lately. Mills are still trying to digest high-priced inventories of cotton, yarn and
fabrics and with the huge price swings we have seen in recent months, there is a lot of confusion
as to where a sustainable price level for cotton really is.

“The latest US export sales report was actually a pleasant surprise after 11 consecutive
weeks of negative numbers in current crop. Net sales of Upland and Pima cotton amounted to 10,300
running bales for this season and 39,200 running bales for next marketing year. Shipments of
227,100 running bales reduced the outstanding balance for the current marketing year to just 2.2
million running bales (last year 3.4 million bales) and … at the current pace of shipment all the
inventory would be gone by September.”

Rebound Of Global Stocks Reported

Also, on June 1, ICAC was reporting a rebound of global cotton stocks in 2011/12, noting that
“This season started with a firm demand from spinning mills, which were looking to rebuild their
stocks depleted in 2009/10, but is ending with weaker demand, mainly due to high cotton prices.”
The following table showing world cotton supply and distribution, provided by ICAC, is
self-explanatory:

ICAC reported: “Global mill use is expected to resume increasing in 2011/12, driven by a
projected robust global economic growth and boosted by increased production, but moderated by
relatively high cotton prices and competition from chemical fibers. … The world ending
stocks-to-use ratio could rebound to 40% in 2011/12.

“The Secretariat believes that the season-average Cotlook A Index will decline significantly
in 2011/12, although it will probably remain above the ten-year average of $0.60 per pound.”

Tight Supplies

However, as Plexus noted on June 16, “remaining supplies in the US are very tight and may not
be enough to meet existing export commitments until October, plus the coming US crop is in trouble
and may yield several million bales less than what was expected just a month or two ago ….”

And what exactly is the annual demand: 119 million or 114 million bales? Again, the heat is
on.

June 21, 2011

Charlotte-based DAK Americas LLC — a manufacturer of polyethylene terephthalate (PET) resin,
polyester staple fiber, terephthalic acid and purified terephthalic acid monomers, and specialty
polymers; and a subsidiary of Mexico-based conglomerate Alfa S.A.B. de C.V. — has agreed to acquire
the PET resin business of Wellman Inc., Bay St. Louis, Miss., for approximately $185 million
including cash and the assumption of certain liabilities. The acquisition includes Wellman’s PET
resin manufacturing facilities in Bay St. Louis, which produce some 950 million pounds of PET resin
annually and employ some 165 workers.

The Wellman transaction comes on the heals of DAK’s acquisition earlier this year of
Kingsport, Tenn.-based Eastman Chemical Co.’s PET and purified terephthalic acid (PTA) business and
the related Performance Polymers assets and technology
(See ”
DAK
Americas Completes Acquisition Of Eastman’s PET, PTA Business,” www.
TextileWorld.com, February 9, 2011). That acquisition increased DAK’s PET
resin production capacity to more than 3.3 billion pounds annually from its PET operations in the
United States, Mexico and Argentina. The addition of the Bay St. Louis capacity will bring DAK’s
total annual PET resin capacity to about 4.3 billion pounds, and its share of capacity in the North
America Free Trade Agreement (NAFTA) region to some 37 to 39 percent — making DAK one of the
leading regional producers of PET resin, according to Ricky Lane, DAK’s director of corporate
communications.

DAK has begun the process with the appropriate regulatory agencies to receive approval for
the acquisition and expects to close the transaction in the second half of this year. The Bay St.
Louis plant produces PET resin for use in bottles and other container applications, and Lane said
DAK plans to continue the operation as is, with no plans for consolidation or other changes.

June 21, 2011

Bonar Technical Fabrics NV— a Belgium-based producer of woven and nonwoven fabrics for geotextile
and agrotextile applications, and a part of United Kingdom-based performance materials manufacturer
Low & Bonar Plc — and National Petrochemical Industrial Co. (Natpet) — a producer of
polypropylene (PP) resin, and a subsidiary of Saudi Arabia-based investment company Alujain Corp. —
have purchased a nonwoven production line from France-based NSC nonwoven for their joint venture
(JV) company in Saudi Arabia. The state-of-the-art line has a 6-meter working width and includes
the Asselin-Thibeau IsoProDyn® control system and the A.C.S. system for high-speed crosslapping,
among other carding and needling equipment. NSC nonwoven reports the line is the fourth Bonar has
purchased that is equipped with the Asselin-Thibeau ProDyn® system.

Bonar and Natpet’s JV will produce geotextile products for the fast-growing civil engineering
markets in the Middle East and the Indian subcontinent. The companies have built a new
manufacturing plant at a site located near Natpet’s PP production facility in western Saudi Arabia.
The NSC nonwoven line will be installed at the plant in early 2012 and production is expected to
commence in mid-2012.

June 21, 2011