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Wednesday, 08 July 2026 12:21

Institute trade reforms to counter forced labor risks; NTCO urges USTR

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The National Council of Textile Organizations (NCTO) has formally petitioned the US Trade Representative (USTR) to institute aggressive trade enforcement measures against apparel imports originating from regions implicated in forced labor. As the industry faces mounting scrutiny over human rights violations, NCTO is advocating for a strategic application of Section 301 duties to shield domestic manufacturers from predatory pricing models that rely on unethical labor. Kim Glas, President and CEO, NCTO, emphasizes, current trade dynamics place US producers at an artificial disadvantage, arguing, robust policy intervention is essential to prevent long-term industrial erosion. The proposed recommendations aim to recalibrate the competitive landscape by penalizing non-compliant foreign entities while simultaneously bolstering regional trade partners.

Strengthening Western Hemisphere integration

Central to the NCTO’s proposal is the preservation of duty-free status for textiles circulating within the USMCA and CAFTA-DR corridors. By incentivizing production shifts away from Asian manufacturing hubs toward the Western Hemisphere, the organization aims to secure a more transparent and resilient supply chain. The industry proposes a collaborative incentive program designed to prioritize US cotton and domestic raw materials, a move projected to generate over 56,000 new manufacturing positions. By excluding raw cotton from restrictive mechanisms that might unintentionally punish local producers and exempting essential machinery from new tariffs, NCTO seeks a framework that rewards high-standard supply chain integrity. This policy alignment represents a concerted effort to harmonize trade compliance with domestic growth, ensuring the sector remains viable amidst intensifying global regulatory pressures.

Supporting domestic production growth

The National Council of Textile Organizations serves as the primary trade association representing the US textile sector, spanning fiber to finished apparel. Focusing on policy advocacy and market expansion, the organization supports domestic manufacturing growth. With $60.9 billion in 2025 shipments, the sector targets increased Western Hemisphere supply chain integration.