033015_NCTO_JaySelfQ&A2015

Posted March 30, 2015

Editor’s note: eTextileCommunications.com caught up with James C. “Jay” Self, III, president of Greenwood Mills, Greenwood, S.C., whose one-year term as chairman of the National Council of Textile Organizations (NCTO) ends on April 1. NCTO held its 12th Annual Meeting last week in Washington, D.C. A complete wrap-up of the meeting will be published next week.

eTC: Jay, your family has always been active and engaged on matters of great importance to the U.S. textile industry, and you’re continuing that legacy as chairman of the NCTO. Please speak to the privilege of following in your family’s footsteps and serving in such a high-profile position to advocate for the industry, especially as it coincided with Greenwood Mills’ 125th anniversary last year.

Self: I have been honored to serve as NCTO’s chairman over the past year. Greenwood Mills has endured the challenges the U.S. textile industry has faced over the past 20 years and we believe we are stronger than ever in our 125th year. I credit our company and our associates, for being able to adapt in times of great change and remain a viable player in the U.S. textile industry despite the uncertainty the industry faced. As we continue to grow, I credit NCTO for its unwavering strength in Washington, D.C. NCTO’s staff has worked tirelessly for this industry and I believe the results of the TPP (Trans-Pacific Partnership) will be evidence of the work his organization has done.

eTC: NCTO and its members and advocates, of course, have been working tirelessly to try to achieve the best possible outcome for the long-negotiated TPP, which looks to be nearing completion sometime this year. That trade pact was a focal point during the Annual Meeting at NCTO member visits to Capitol Hill and in conference programming. First, what were your biggest messages to lawmakers regarding this comprehensive, 12-country agreement?

Self: My biggest message to lawmakers was to ensure that a balanced and reasonable agreement is reached that positions the U.S. textile industry to compete fairly with its TPP partners. Over this past year, NCTO staff and leadership have had a virtual non-stop engagement with our government to convince them of the need to secure a sustainable TPP agreement.

NCTO's 12th Annual Meeting – Part 1

Self, NCTO continue push for balanced, reasonable TPP

NCTO Chairman Jay Self, president of Greenwood Mills, credited the council and its members for working tirelessly to ensure a fair TPP. (Photo by Steve Rosenthal)

This includes our specific goals of:

A strong yarn forward rule-of-origin;
Reasonable duty phase-outs on sensitive textile and apparel items; and
Strong Customs enforcement provisions.

Thanks to NCTO’s continued interaction with U.S. trade negotiators, all of these goals remain achievable. Of course, as with all trade agreements, things can change as the talks move to a conclusion and our negotiators face great pressure to get a deal done. With clear evidence that the TPP is in its final stage, NCTO will remain thoroughly engaged in order to give our members the best chance to secure a final deal that is acceptable.

eTC: And as far as the meeting agenda, what aspects of the TPP were covered in presentations that members can use to better understand and effectively communicate the pros and cons of the partnership?

Self: Our keynote speaker was Ambassador Michael Froman, who serves in the president’s cabinet as U.S. Trade Representative. We certainly got firsthand insight from him on where he sees the TPP and other major U.S. trade initiatives going from this point. We also had a panel of U.S. government trade negotiators who made a presentation, along with several key members of Congress. We expect that NCTO members left our meeting with tremendous insight on TPP and other issues.

Beyond the specifics of TPP, this year’s meeting was titled “The 21st Century Textile Industry: Capitalizing on a Resurgence.” We wanted to reaffirm the message that our industry is enjoying broad-based economic success.

Over the past two years, more than 13 foreign and domestic companies have made public announcements regarding their intentions to invest more than $2 billion in new U.S. textile facilities and equipment. These investments are projected to provide approximately 3,000 new jobs in North Carolina, South Carolina, Georgia and Louisiana. This $2 billion does not include the ongoing re-investment activities that domestic textile companies have made, such as expansion announcements by NCTO members.

Beyond these impressive investment figures, overall trends within the industry continue to be positive:

The textile industry is adding jobs for the first time in two decades;
There has been a 45 percent increase in exports since 2009;
U.S. textile shipments totaled $56.7 billion in 2014; shipments have increased by 1/5th since the recession; and
The U.S. textile industry is the third largest exporter of textile products in the world. Exports of all textile products were nearly $18.3 billion in 2014 and there has been a 45 percent increase in exports since 2009.

Our conference this year focused on these positive trends.

eTC: The merger a couple of years ago between NCTO, the NTA (National Textile Association) and the AMTAC (American Manufacturing Trade Action Coalition) created one broad-based industry association that enables the industry to better speak its interests with one voice on Capitol Hill and beyond. As far as the TPP, do you sense membership is mostly unified on NCTO’s position on this issue, or is there some division?

Self: We feel that our membership has adapted very well as a result of the merger. We represent nearly 150 companies that cross a broad spectrum of products and geographic regions. On behalf of these members, NCTO has worked hard to ensure a good outcome on TPP. We are very pleased with the level of interaction and responsiveness on the part of our government negotiators. So while we are optimistic at this point, we are also prepared to study very carefully the details of any final TPP agreement and position ourselves accordingly.

We certainly have an open mind about TPP and are doing everything possible to work with the Obama Administration to produce a final agreement that we can support. Certainly, there is a concern that in the very final stages of the negotiations there will be concessions that would be costly to our industry, our workers and many communities across the United States that are dependent on the economic contribution that we provide. We will wait for all the details to be finalized to take any official position on TPP.

eTC: As per usual on international trade matters, the industry is up against heavy hitters with deep pockets, so the mountain seems steep for the U.S. textile industry on the matter of the TPP. But does it appear the Obama Administration, lawmakers and policymakers overall are getting your message and supporting the NCTO’s suggested provisions for a most favorable result?

Self: We believe that the Obama Administration has listened carefully to the U.S. textile industry and understands that we are a vital industry and a strong contributor to the U.S. economy. We believe that they are working to reach a final deal that is very suitable to our interests. To our advantage is the fact we are an industry that still employs and is supported by millions of people, both in the U.S. and throughout the NAFTA and CAFTA regions.

We are defending full-time and stable manufacturing jobs, which provide a working wage and good benefits. The announcement by the White House and the Department of Defense (DoD) to form the Revolutionary Textile and Fiber Institute of Manufacturing Innovation (RFT-IMI) last week is validation of the continued growth of the industry and enormous contribution we make to the national economy, job growth and our national defense.

eTC: What’s the latest status update on the TPP and its expected timetable for completion?

Self: We continue to see positive movement in TPP negotiations and believe them to be in their final stages; we believe we will see a final agreement in 2015.

eTC: In addition to your membership calls to action, what else can council members and others in the industry do to assist in your efforts?

Self: Expanding our membership is of critical importance in order to continue to demonstrate to the U.S. government the breadth of the domestic industry. Members can also get involved by participating in our Hill to the Mill program. The Hill to the Mill program brings members of Congress to individual factories in order to demonstrate the contribution our industry makes to communities, job creation and the economy. We also always welcome members who are interested in bylining op-eds and becoming involved in NCTO PR activities. We encourage anyone who wants to get involved to contact us for opportunities.

eTC: NCTO President & CEO Auggie Tantillo recently said that completing the TPP would be a way of proving that the Obama Administration and GOP lawmakers can work together to “get something done.” Recently, however, we’ve been hearing of Republicans who are beginning to oppose the deal and buck some of their big political backers, such as the U.S. Chamber of Commerce and the National Association of Manufacturers. Their main point of contention seems to be the fact that the agreement doesn’t address issues of currency manipulation. The NCTO allied with two other national trade groups last year to raise awareness of this issue. Has the NCTO taken any further measures to keep this issue at the forefront, and is there any hope that currency manipulation discussions will become part of TPP negotiations?

Self: NCTO will reach a final decision on TPP based on the very specific textile issues covered by the agreement. With that said, we have expressed positions on a number of broader TPP issues, such as currency. We are concerned with countries involved in the TPP negotiations, which actively participate in currency manipulation, such as Vietnam. The production model in Vietnam relies on government subsidies, Chinese yarns and fabrics and currency manipulation creating an uneven playing field for the U.S. industry. Vietnam’s exports to the U.S. grew at a rate of nearly 16 percent in 2013, and their phenomenal market penetration has occurred without any duty preferences. Vietnam is now the second largest exporter of textiles and apparel to the U.S. market, shipping over $8.8 billion in product last year.

The practice of currency manipulation places the entire U.S. manufacturing base at a considerable disadvantage when it comes to international trade. We need a bipartisan solution that involves both the Legislative and Executive Branches of our government.

eTC: I know you’re keeping your eyes on trade-promotion legislation pending on the Hill. “Fast track authority” – which would subject the pact to only an up-or-down vote in Congress, with no amendments allowed – could facilitate passage of the TPP, of course. What is NCTO doing to have an impact on this debate?

Self: We are waiting to see an actual TPA bill introduced. At that point we can make an informed decision about TPA legislation. With that said, we are positioning ourselves to be supportive of TPA, assuming we continue to get good reports about the U.S. government’s handling of textile matters in the TPP talks.

eTC: Besides the Pacific deal, what do you see as some of the industry’s other looming challenges?

Self: An effort to reach a free trade agreement with Europe, known as the Transatlantic Trade and Investment Partnership, or TTIP, is well underway. While these negotiations are certainly moving at a slower pace, there are challenges associated with TTIP. The two primary challenges we see at this point in the negotiations are that the EU favors a fabric forward as opposed to a yarn forward rule and that the EU is also pressing for access to U.S. military contracts – both of which are not acceptable for us. Consequently, the European agreement will also demand considerable resources and attention on the part of the domestic industry.

eTC: Having worked closely with fellow South Carolinian Jeff Price, division president at Milliken & Co., please comment on the skills and insights he brings to the table as he succeeds you as NCTO chairman.

Self: I know Jeff will make an excellent chairman. He is a strong leader and has vast intuitional knowledge of the industry. I look forward seeing what he does with the position and wish him the best of luck.