Textile Machinery Association Cites Impact of Import ProblemThe American Textile Machinery
Association (ATMA) has weighed in on the textile trade issue with a report that says US textile
manufacturers have suffered more damage in the last five years than the industry did during the
depression of the 1930s. The ATMA analysis says that during the economic downturn starting in 1929,
US production of cotton fabric dropped from 8.4 billion square yards to 6.3 billion, a decline of
25.3 percent. At the beginning of the current downturn in 1997, cotton fabric production was 5.1
billion square yards, but by 2002 it had fallen to 3.5 billion, a decline of 30.6 percent from
1997.In releasing the analysis, ATMA Chairman Fred Moorhead said, Let there be no doubt about how
much US textile mills and their workers are being hurt by unfair trade imports. They are facing
downturns in business today greater than they did in the darkest days of the depression. Moorhead
placed much of the blame for the problem on China and its currency manipulation, which he said
amounts to a 40-percent subsidy for imports and a similar tax on exports to China. He said the Bush
administration must act quickly to get a market-driven Chinese currency to help the US Textile
industry overcome what he called unfair and inequitable advantages resulting from currency
manipulations. Moorhead said the US textile industry is modern and productive, but cannot compete
in the present atmosphere. He urged US government to do more to give the industry a chance to
compete fairly.Concurrent with the release of the survey, the American Textile Manufacturers
Institute issued a fact sheet saying output by manufacturing industries is experiencing its slowest
recovery from a recession, that costs of producing in the United States are rising sharply due in
large measure to environmental, energy, and health care regulations, and that a decline in exports
share of gross domestic product and a loss of corporate cash has put limitations on companies
ability to make investments in research and growth.By James A. Morrissey, Washington Correspondent
October 2003

New Trade Coalition Has Broad ReachA group of manufacturing companies, farmers, agri-business and
labor unions has formed a new coalition to inform the public and lawmakers about what they say is
an economic disaster resulting from unfair international trade practices. The coalition
representing some 3,000 corporations and 2 million employees is supported by the American Textile
Manufacturers Institute (ATMI), National Textile Association, American Manufacturing Trade Action
Coalition, American Fiber Manufacturers Association, Textile Distributors Association, National
Cotton Council and the textile and apparel union UNITE. It also includes metals, cattle, chemical,
paper, sugar and honey interests and the United Steelworkers of America. Members of the coalition
have major operations in 35 states.The coalition was formed by Wilbur L. Ross who, among other
things, is seeking control of Burlington Industries and Cone Mills. At a news conference announcing
formation of the Free Trade for America Coalition (FREETAC), Ross said, Americas standard of living
is being systematically destroyed by our international trading partners and the people must be made
aware of this economic disaster. He said the US governments failure to address the causes of the
growing trade deficit is supporting transfer of Americas wealth to other nations. He pointed out
that the US trade deficit is five times worse than 10 years ago and that the nation has permanently
lost 3 million jobs.Ross said the coalition will conduct an education and lobbying effort to
address the governments failure to address the causes of the trade deficit, including foreign
government currency manipulations; evasion and circumvention of US laws; unfavorable trade
agreements; and US laws that he said deny timely relief to many injured industries, their workers
and communities. He said that both the Bush administration and Congress will be targeted by the
campaign.Speaking at FREETACs news conference, Cass Johnson, ATMIs interim president, welcomed
formation of the coalition, saying it could bring a new message and a new sensibility in the trade
arena.By James A. Morrissey, Washington Correspondent
October 2003