Posted on 06/12/2003 1:17:37 PM PDT by Willie Green
For education and discussion only. Not for commercial use.
For the first time in more than 15 years, textile industry representatives are joining forces with an eye toward pressuring federal representatives to enforce trade restrictions on Chinese imports.
Members of six national industry organizations have signed onto the collective effort in response to the loss of more than 250,000 jobs in the textile and apparel industry over the past two years. On board are the American Textile Manufacturing Institute, the National Textile Association, the American Yarn Spinners Association, the National Cotton Council, the American Fiber Manufacturers Association and the American Manufacturing Trade Action Coalition.
The group met Tuesday for a seven-hour goal-setting session, and followed up Wednesday with an hour-long teleconference with reporters. Their specific target is follow-through on government promises made to protect American companies from a rapid increase in low-cost Chinese textile imports. To that end, participants are vowing a political and public relations battle with elected officials they believe have dropped the ball when it comes to defending American manufacturing interests.
Moreover, with the national unemployment rate at 6 percent and the loss of nearly 2.5 million manufacturing jobs since 2001, they believe they are not alone. Jim Chesnutt, AYSA president and head of National Spinning Co. in Washington, said Wednesday that widespread political fallout is a likely scenario if trade policies don't change.
"So many people are angry, across the Southeast and nationally there are several congressional seats and a senator or two who might lose their seats," Chesnutt said.
"We're interested in protecting jobs," said Allen Gant, ATMI's second vice chairman and chief executive officer for Glen Raven Mills. "We would hope those who are also interested will join us. Those who aren't interested in protecting jobs need to watch out."
Participants in the effort said they will bring their collective clout to bear on the Central America Free Trade Agreement now being negotiated. The issue is tariff preference levels, or TPLs, which allow exceptions to import limits set on China via its participation in the World Trade Organization.
The latest example occurred last month when President George W. Bush signed a free trade agreement with Singapore. The deal includes eight years of duty-free shipments of textile products made with neither U.S. nor Singapore-manufactured materials.
Textile representatives also want Washington to address China's monetary policy which allows devaluation of its currency in a manner that creates a 40 percent price advantage over goods manufactured in the United States.
Jerry Rowland, chief executive officer of National Textiles also said that, because of government backing, Chinese companies are able to produce goods at a loss but still stay in business.
"Compare that with companies in North Carolina, honored old companies that have had to shut down," Rowland said, adding his business has invested more than $150 million over the past five years on technology to reduce production costs. He believes, without a change in trade policies, that investment will come to no avail.
"We've cut our costs, but we cannot compete with communist government-run, subsidized businesses whose purpose is to economically take over the world," he said.
Another reason American textile leaders want government to act now is that, in January 2005, any restrictions that are in place as part of the WTO will expire. Chinese officials promise voluntary controls but the idea is being met with much skepticism.
Augustine Tantillo, AMTAC's Washington coordinator, noted that when restrictions were lifted on 29 textile categories, Chinese exports rose by 600 percent on every description. Adding to the mix, U.S. officials then took more than a year to establish safeguard procedures intended to allow a protest venue for American manufacturers to show cause why those restrictions should be reimposed.
Along with intentions to mount an intense lobbying effort - a budget and the finer points of which could be determined when the group meets again next week - officials intend to file petitions to put quotas back in place on five categories.
"We're examining all 29, but there are strong cases to make already on knit fabrics, robes, brassieres and cotton gloves," Tantillo said. "We will take our time and make sure everything is exactly as it should be in those petitions. We don't want any excuses or complications."
Industry representatives may take pains to have all their paperwork in the right order, but they see the political climate as the real crux of the situation.
NTA President Karl Spilhaus said it's a matter of Washington standing by commitments made to the industry over the past two years, including a pledge from President Bush in 2001 to "ensure the interests of our textile industry and workers are at the heart of trade negotiations."
The promise was made as the White House was pushing legislators to pass Fast Track trade provisions giving the administration full authority to sign off on agreements without Congressional input.
With that thought in mind, tempers are still flaring over a Vietnamese trade pact signed in April. The deal was made using numbers that were and continue to be under investigation since the discovery of customs documents indicating items labeled as being manufactured in Vietnam actually came from China.
"We are united in insisting that the administration live up to its promises," Spilhaus said.
In that regard, the new coalition has at least one North Carolina representative on its side. Congressman Howard Coble, R-District 6, said while he is "very high on President Bush" he feels the administration has "not been forthcoming" when it comes to guarding domestic textile interests.
"The textile industry has been a convenient trading chip and it's an attitude that transcends partisan politics," he said. "This problem has been casually dismissed by Democrats and Republicans alike."
Coble also believes the new cooperative approach can be very effective.
"The textile and apparel industry employs 1 million people. If something doesn't happen for them, they're going to feel disenfranchised," Coble said. "Today's action is a good first step."
Officials at the U.S. Department of Commerce did not return calls for comment.
Michele Abbott can be contacted at 888-3509 or mabbott@hpe.com
Where do Americans get these silly notions of having the freedom to purchase any product they choose? The government and "impartial" individuals such as Mr. Tantillo are in a much better position to decide which products Americans should be allowed to purchase!
Your definition of "unfree" trade is Chinese people working their butts off so that I can have 4 TVs and 3 DVD Players while they can't afford any. The Chinese are killing themselves trying to raise my standard of living. This is terrible! It must be stopped!
I sat in public school next to many "future textile workers." They made little effort to benefit from the last time they were offered free training.
Let's suppose for a minute you are looking for a used car. Someone desperately needs to get rid of just the one you want. He offers it to you for about 1/2 of wholesale. Should you be allowed to buy it??
What about the other people who are attempting to sell you a car at retail. It is not fair to them. He should NOT be allowed to dump his car on the market and harm other sellers.
Twenty years ago it was the Japanese that all of the "protectionists" used to justify their attempts to limit MY freedom. There will always be someone willing to work hard and people who aren't willing to work hard will resent them and attempt to curtail MY freedom to deal with them.
Good point!
To be unemployed in the country means that you have done something wrong. I know plenty of businesses that can't find enough employees with an insurable driving record, no criminal convictions, a reasonable work ethic and the ability to add two numbers. Businesses that will pay $15 - $20 plus plenty of overtime ($50-$60K/year with room to grow.)
Did they possess marketable skills in multiple industries? Are they willing to go to where a job is? I have earned several college degrees, moved to two states, studied and earned two professional licenses, and have never had any trouble finding multiple offers in high-tech (and not so high-tech) industries. I don't see the unemployment. I have worked in manufacturing, engineering and consulting. It's difficult to find good people.
You want to make $80K a year with no education, attaching bolts on an assembly line - good luck. Are you willing to learn the skills that are in demand today and learn something else in a few years. You'll have no problems.
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