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NCTO applauds Senate Passage of USMCA

The National Council of Textile Organizations (NCTO), represents the full spectrum of U.S. textiles from fiber through finished sewn products, lauded Senate passage today of the U.S.-Mexico-Canada Agreement (USMCA).

Mexico and Canada being the two largest export markets for the U.S. textile and apparel industry, totaling nearly $11.5 billion for the year ending Nov. 30, 2019, according to government data.

“USMCA is an important for the textile industry,” Glas said. “The improvements it makes to the North American Free Trade Agreement (NAFTA) will only serve to generate more business for domestic producers and create more jobs and investment in the U.S.”

NCTO worked with the administration during negotiations on USMCA and secured several provisions in the trade deal including stronger rules of origin for certain textile inputs and increased U.S. customs enforcement.

U.S. textile executives are moving up to take advantage of the modifications in USMCA and some plan to build new business or expand existing business in areas such as pocketing, sewing thread and narrow elastics.

The USMCA updates and modifies the NAFTA and makes significant improvements, including, Creation of a separate chapter for textiles and apparel rules of origin with strong customs enforcement language. Stronger rules of origin for sewing thread, pocketing, narrow elastics and certain coated fabrics. Under the current NAFTA, these items can be sourced from outside the region USMCA modernizes this loophole and ensures these secondary components are originating to the region.

Fixes the Kissell Amendment Buy American loophole, ensuring that a significant amount the Department of Homeland Security spends annually on clothing and textiles for the Transportation Security Administration is spent on domestically produced products.