2 of 3 Carolinas textile jobs may go in 3 years, study says

The Charlotte Observer ^ | Thursday, July 03, 2003 | TONY MECIA

[Willie Green]

For education and discussion only. Not for commercial use.

Unrestricted trade with China could cause the Carolinas to lose two of every three remaining textile jobs in the next three years, according to a study released Wednesday by the U.S. industry's leading trade group.

The American Textile Manufacturers Institute projects North Carolina will lose 85,000 textile and apparel jobs between 2004 and 2006 -- more than any other state. South Carolina would be the third-hardest hit, with 42,000 job losses, according to the report.

The study is part of a campaign by ATMI and other textile trade groups to persuade the U.S. government to re-impose quotas on certain categories of textile and apparel from China. Government limits on imports of some textile products were lifted last year, and the remaining textile quotas are scheduled to be eliminated in 2005, although tariffs will remain.

By examining the presence of Chinese-made textile products in Japan and Australia, which have no quotas, ATMI forecasts that China will control 71 percent of the U.S. textile and apparel import market by 2006, up from 20 percent this year.

That will cause an estimated 630,000 layoffs nationally in an industry that employs about 1 million, according to the report. Other countries, including those in Latin America and Africa, will also see their textile industries shrivel as China claims a growing share, ATMI said.

In an interview last week with China Daily, Chinese officials said the U.S. textile industry's efforts to limit shipments of Chinese textiles are "groundless" and an abuse of international trading rules.

Between 1998 and 2002, textile and apparel imports to the United States increased 47 percent, to 38.3 billion square meters. During that time, Chinese imports nearly tripled, to 5 billion square meters.

Erik Autor, vice president of the National Retail Federation, said he thinks trading patterns will continue to shift overseas.

"Irrespective of what might happen on quotas or even with respect to China, job losses in the apparel industry in the United States will continue, mainly because it just isn't economic to make commodity apparel in the United States," he said.

Tony Mecia: (704) 358-5069; tmecia@charlotteobserver.com

[jayef]

I think what's sad is that this kind of thinking still persists in America. Apparently we are failing miserably in teaching anything but Keynsean economics. I pray that one day Americans wake up and see the light. The free market, free flowing capital and the power of the individual over the state is the only thing that will save this country and humanity.

[TopDog2]

We didn't have the mass layoffs, mass exportation of jobs, mass import of unneeded H1b workers that we now see. If anyone can give us a concrete example of the situation improving, I'd sure like to see it. All we get are generalizations and platitudes.

[jern]

So the Good Lord wants us to buy over priced US t-shirts when we can buy them from a cheaper vendor? What happened to Free Markets? Basically you are saying you want US residents to pay more for goods made by people living in the US, instead of buying them as cheap as they can elsewhere?

[jayef]

What about space?

http://www.xprize.org/

Ever check out DARPA? Most of these technologies will be developed here in the good ole USA.

http://www.darpa.mil/

What about nanotechnology?

http://www.zyvex.com/nano/

What about big pharma?

http://www.pfizer.com/main.html

Ever check out what's going on at Sandia?

http://www.sandia.gov/pulspowr/facilities/zaccelerator.html

I could post examples like these all day of technologies being developed right here in the US that will revolutionize how we live. And you're telling me that I should be concerned that Chinese are going to make textiles instead of North Carolinians? You're telling me that with an 11 trillion dollar economy, that even in bad times is far more productive than what's in second place, that we are somehow on the ropes? RIIIIGHT!

[riri]

Wipe out the middle class and a dictatorship is right around the corner

I don't know about dictatorship being right around the corner, though it very well could be. But my feeling is, if tis trend continues I have to believe this is a concerted effort coming from somewhere to weaken the United States.

As I watch this unfold, I am starting to believe the old NWO stories.

[jayef]

Bogeys, bogeys . . . everywhere.

[jayef]

Do you believe in ghosts, witches and vampires too?

[riri]

It's all very funny until it's your job or your company or your investments that end up in the tank. Or when large groups of 3rd world immigrants starting pooling their $7 per hour to rent houses in your neighborhood.

[azhenfud]

Here's a note I sent to Jim Snyder, a former candidate for Senate from NC:


"Washington aggressively forged NAFTA and Fastrack, which has resulted in 22.05 billion dollars of goods being exported to communist China in 2002, while we import from Jiang Zemin, the architect of the Tiananmen Square tragedies, 125.17 billion dollars of goods."

Dear Mr. Snyder,

Let us not soon forget our newly-elected Senator is frequently referred to as "The Queen of WalMart" and WalMart as "the China Factory Outlet Store".

Sure, the residents of our state, our nation needs jobs - and like you, I see our misguided former government leaders were/are the culprits in sending our jobs overseas and across our borders.

One foundation of our government's existence is to protect those of whom are its governed and who PAY the taxes to support it. Yet the U.S. government seems too preoccupied in defending the trade "rights" of those who will never bear the cost of our government, and seemingly more protective of those most hostile to us. Foolish, isn't it?

I propose that our government place a moratorium on factory relocations in such that those companies which choose to leave our borders suffer their product be banned from U.S. markets for a minimum of five years or be heavily tariffed by thirty-six percent on all imports. Those tariffs are destined to help offset the negative economic effects of their decisions to relocate. The five year ban would reduce the offending company's hold on market share, thus increasing the chance that that market likely be filled with a domestic provider which pays taxes and provides incomes for our citizens.

In short, we would be stating without uncertainty to those companies eager to close their doors and move, if you leave the U.S., you forfeit all protections afforded to our citizens. We must make those protections the incentive for those companies to remain in the U.S. We also must make the resulting costs of that choice to move be borne by those companies as a deterrent to those closings.

We cannot continue the path of our supporting tax base to erode by allowing them to move to foreign lands - immuned to taxation while continuing to offer trade protections to them.

May God continue to bless and mercifully guide our great country,
Signed


But, it'd never fly - too many politicians are already bought.

[TopDog2]

Those examples will hardly provide job opportunities for displaced textile workers. Indeed, those niche industries employ very few workers at all. You, and the rest of the free-traitors, have proven unable to come up with any concrete solution to the very real social impact that globalization is having on the middle class.

[azhenfud]

Where do you see the U.S. capable of making up a $100 bil/annual trade deficit with China? How long can such inequal trade continue (consider also that this is only ONE country) without series erosion to the dollar value? When the dollar falls, inflation rises, so declines YOUR and MY standards of living....

[azhenfud]

None of these technologies would survive without the good ol' U.S. dollar buying/paying for their product or service. There is little or no chance the profit on exports from these combined could pay the tax on the trade deficit acquired from China.

[jayef]

Again you only prove that you are an enemy of the future. Do you not have the foresight to realize that today's "niche industry" is tomorrow's "cash cow". Microcomputers and software were niche industries in the late 70's and early '80s.

[jayef]

None of this would be improved by the protectionism that you advocate.

[jayef]

Trade deficit with China? How does one end up with a trade deficit? What does that mean? It means Americans are buying things. This is not a zero sum game. Do you guys ever read anything besides Keynes?

[Bill Davis FR]

why not 3 of 3???

[jayef]

Didn't America enjoy trade surplusses during the Great Depression. Hasn't Japan been running trade surplusses for the last 2 decades?

[riri]

None of this would be improved by the protectionism that you advocate

Perhaps, not. I am not sure where this will lead. I am not as concerned about textile mills leaving the United States as I am hi tech industries and talent.

I come to these threads because I like to see what those more knowledgable than I think on both sides of the issue.

[riri]

Do you not have the foresight to realize that today's "niche industry" is tomorrow's "cash cow".

Good point. But how long will the average American get to reap the benefits of a new cash cow industry before it is carted away to another part of the world? It seems the life span here in the states gets shorter and shorter.