But for now, the NCTO, on behalf of its constituency, appears to have raised awareness of its concerns – and is getting positive vibes, at least on paper. That may not have happened 10 years ago when the industry was so disjointed and antagonistic. Of course, who knows what the final language will be when the agreement is signed, perhaps as early as April. Let’s hope the U.S. government, as it carries out its mission to prove it can accomplish something, isn’t just paying the industry lip service to appease us.
If the U.S. holds to its promises and does what the NCTO has asked, the group will support the deal, Tantillo said. If not, the council will stridently oppose it because “there are to many American jobs and too much investment” to agree to a “bad” TPP, he added.
As Tantillo has noted on several occasions, the TPP isn’t going to greatly benefit the U.S. textile industry. But the reason the NCTO has even considered supporting the deal is so it can have the ability to impact the details, he said. Call it mitigating potential damage. The council is only asking for a reasonable, logical outcome, one the industry could support. That puts the onus on the U.S. government. “If they deliver, I have to go back and say ‘OK’ because this isn’t the last agreement they’re going to do,” Tantillo said. “So if I don’t live up to my word, then the next policy issue that comes along, they’re going to say we don’t want to talk.”
And it’s imperative that the industry, now in an upward trajectory, maintain its seat at the table.
Posted January 20, 2015
Years ago, I remember the biggest complaint those who lobbied on behalf of the U.S. textile industry was they were not provided a place at the negotiating table on trade matters. During such tussles – NAFTA, CAFTA, GATT, WTO and the rest of the alphabet soup that greatly impacted this industry – U.S. textiles was known as the industry of “no.” In general, it said “no” to anything that elicited a level of uncertainty or potential instability to a thriving engine. And the industry was deeply divided on several trade pacts, which served to only send mixed messages to lawmakers and policymakers. Those truisms, plus the fact the industry couldn’t match the deep pocketbooks of its counterparts in the retailing and importing sector, indeed led to the industry’s being locked out of the room during discussions of several issues.
Sometime in the last few years, however, the industry adopted a more conciliatory approach whenever something new in global trade emerged. And, through various mergers of national trade associations, it has come together to speak with one voice in Washington and beyond. Today, it finds itself not only seated at the table but given a speaking role. Auggie Tantillo, president & CEO of the National Council of Textile Organizations (NCTO), reminded attendees of the South Carolina Manufacturers Alliance’s Textile Summit in Spartanburg, S.C., last week that the industry is being heard in Washington.
To wit: Most of the NCTO’s arguments for requirements to be included in the Trans-Pacific Partnership (TPP) have been agreed upon by trade negotiators and policymakers. For a level playing field to be achieved in the pact, the council says it must include a fair and reasonable rule of origin; fair market access rules and tariff elimination formulas; and strong and effective Customs enforcement rules. He credited the U.S. government for adopting its proposals and for sticking with them through the long negotiating process.
The ambitious, 12-country trade agreement is 10 years in the making and has involved more than 20 negotiating rounds. But contentious issues such as agriculture, intellectual property and services and investments have stalled the pact overall. From the U.S. textile industry’s perspective, as highlighted on this website several times, the biggest concerns are Vietnam’s inclusion in the deal and that country’s demands related to textiles and apparel. The outcome of the agreement can range from moderate to devastating to the industry in this hemisphere, depending on the final language.
Industry earns seat at the trade table
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