NTA remarks on the twentieth anniversary of the American facilities of Jabok Mueller.
Charlotte, NC, March 11, 2002--Remarks on behalf of the Northern Textile Association, prepared by David Trumbull, delivered in Charlotte, North Carolina on the occasion of the twentieth anniversary of the opening of the American facilities of Jabok Mueller of America, Inc.
Thank you Rene and thank all of you for asking the Northern Textile Association to share in this auspicious occasion. Our president, Karl Spilhaus, sends his regrets that he cannot be here in person today to celebrate the anniversary of your company's American operation. I bring you Karl's greetings and those of the member companies of NTA. You are familiar with many of our members; in particular the members of NTA's Narrow Elastic Manufacturers Association:
Today is, as you all know--it's been in the newspapers and television--exactly six months since the September 11 terror attacks on the United States. America responded swiftly, vigorously, and effectively. When President Bush called for Americans to support this war on terrorism, the Northern Textile Association, along with 13 other textile trade associations immediately wrote to the President pledging the support of the textile industry in the efforts to fight back against those who have attacked our great nation.
As you men and women well know, the American textile industry complex provides the U.S. military with approximately 13,000 different items made either partially or entirely from textiles. These include a vast array of products worn and used by service personnel on land, at sea and in the air. They range from sandbags to parachutes; from camouflage fabrics and extreme weather gear to chemical and fire protection wear; from field tents to lightweight, ultra-strength materials for military aircraft.
The textile industry is vital to America's defense of freedom. That is why I think it so fitting that Jakob Mueller has produced this beautiful "Symbols of our Freedom" commemoration [SHOW JMA HISTORY OF OUR FLAG] which I have enjoyed showing to my friends.
Even before September 11, the textile industry was experiencing hard times. But we are survivors, and innovative companies are seeking out new markets, developing new products, and adapting to the global market for textile products.
The 147th Annual Meeting of NTA, in September 2001, featured guest speakers from the Dominican Republic, Guatemala, Honduras, and Jamaica addressing how to make the Caribbean Basin Trade Partnership Act work for U.S. textile manufacturers. The CBTPA grants to the nations of the Caribbean region duty-free, quota-free access to the U.S. market for apparel. To get the benefit, the Caribbean region apparel manufacturers must use U.S. made fabric in most cases.
Much of my time since the CBTPA passed in May 2000 has been devoted to learning all there is to know about CBTPA and explaining this new law to our NTA members who have potential to increase sales of U.S.-made fabric to the Caribbean region. We at NTA have met with, and submitted comments to, U.S. Customs regarding CBTPA. We believe that Congress intended that CBTPA be an incentive for the use of more U.S.-made fabric, including narrow fabrics. We want to see Customs fully implement that intention. This is an important item.
For example, the CBTPA has a trim exemption that permits up to 25% of the cost of the garment to be foreign trim components, exempt from the U.S.-made fabric requirement. Some importers have claimed that the trim exemption applies to all manner of narrow fabrics that are commonly referred to as "trim" in the textile and apparel industries. NTA argued, and Customs agreed, that "trim" as the term is used in the CBTPA, refers to only a few textile items--those items that were considered "trim" under the Special Access Program. While that does mean that such items as zipper tape, labels, and certain bra straps may be foreign, most other narrow fabrics are not "trim" for CBTPA purposes and, therefore, must be of U.S. origin. Had Customs accepted the more expansive definition of "trim", the CBTPA would have been of practically no benefit to American narrow fabric manufacturers. In fact, it would have been positively harmful, because it would have encouraged the use of foreign narrow fabric.
Currently we are pushing for several technical corrections to both the CBTPA and Africa Growth and Opportunity Act. Of importance to narrow fabric makers is the issue of commingling of U.S. and regional fabric. AGOA requires the use of U.S.-made fabric in most cases. But is does provide for a limited amount of regional (that is African fabric). Due to a drafting error, the current regulation prohibits the use of U.S. fabric in garments made of African fabric. Clearly, that is 180 degrees from what Congress intended. There are many applications where U.S.-made narrow trim fabrics could be combined with African shell fabrics, but until NTA gets this correction through Congress, those sales must be forgone.
Our recent activities at NTA have been directed toward urging Congress to keep the promises made to the textile caucus in exchange for votes for Trade Promotion Authority. NTA, joined by the top management of 29 member and non-member companies, have written on this topic to every United States Senator and Representative from each of the 21 states in which there is textile production--including Sue Myrick here in the ninth district. Our strong urging of Congress to keep the promises was reported in Inside US Trade, Women's Wear Daily, and Southern Textile News.
In May NTA will be exhibiting members products at the Apparel Sourcing Show in Guatemala. Once again, it is the companies who search out new markets and new products who will be the survivors in the American textile industry.
Finally, I urge you to mark your calendar for the 148th Annual Meeting of the Northern Textile Association, September 22-24, 2002 at the Black Point Inn, Scarborough, Maine. Featured program speakers will address how to compete in the world of global markets and strategies for survival in the textile industry.
Congratulations to Jakob Mueller on twenty years of operations here in North Carolina. We appreciate the support that you have given NTA through those years.
The Northern Textile Association represents producers of fiber, yarn, and fabric, as well as dyers, printers, and finishers of fabric have domestic U.S. production in over 20 states. NTA is based in Boston, Massachusetts and was founded in 1854.