National Textile Association: March 2008

Monday, March 31, 2008

DR-CAFTA Pocketing Rule To Be Implemented Soon

Modifications to the rules of origin for certain apparel products under the CAFTA-DR will soon be implemented. Effective with respect to goods that are entered, or withdrawn from warehouse for consumption, on or after the dates announced by the United States Trade Representative and published in the Federal Register. For most apparel goods containing a pocket or pockets, the pocket bag fabric must be formed and finished in the territory of one or more of the Parties to the Agreement from yarn wholly formed in the territory of one or more of the Parties to the Agreement in order for that apparel good to qualify as an originating good under the Agreement (“pocket fabric rule of origin modification”).Interested parties are advised to take note and be prepared for the upcoming changes. Please refer to the Presidential Proclamation for complete modifications.

Bush Administration Submits Annual Trade Report to Congress

Washington, D.C. – The Office of the U.S. Trade Representative (USTR) today announced the release of its 2008 National Trade Estimate Report (NTE). The NTE report describes significant barriers to U.S. trade and investment, as well as the actions taken by USTR to address those barriers.

William E. Kovacic Assumes Position as Federal Trade Commission Chairman

Commissioner William E. Kovacic today assumes the role of Chairman of the Federal Trade Commission. On March 26, President George W. Bush announced his intention to designate Kovacic to serve as Chairman upon the departure of Deborah Platt Majoras. Kovacic has served as a Commissioner at the agency since January 2006, following his nomination by the President and confirmation by the U.S. Senate.

“I am pleased and honored the President has designated me to serve as Chairman for this jewel of an agency,” said Kovacic. “I look forward to working with my fellow Commissioners and the FTC’s staff to advance an active agenda that will preserve competition and protect American consumers.”

Friday, March 28, 2008

Wool Fabric Legislation Introduced in House

Reps. Louise Slaughter (N.Y.) and Melissa Bean (Ill.) introduced a bill (H.R.4831) to extend the American Wool Trust and temporary duty reductions and suspensions on certain wool products.

The current wool program represents a carefully crafted compromise supported by the three segments of the wool production chain--the domestic wool mills, the fabric manufacturers and U.S. wool producers. The legislation is best known in the sheep industry for the wool programming that the American Sheep Industry Association (ASI) provides on wool product development, quality improvement and wool market expansion.

"Over the last seven years of the program, the wool fabric provisions have been deemed a success by all involved parties. As the temporary duty treatment on wool fabric expires in 2009, it is timely that suit manufacturers, mills and producers support an extension of the wool legislation," commented Peter Orwick, ASI (American Sheep Industry Association) executive director. "If the legislation is not extended, industry would return to the severe political battles regarding legislation that existed in the late 1990's."

Americas Textiles and Apparel Competitiveness Forum

Americas Textiles and Apparel Competitiveness Forum:
On Monday, April 7, 2008 3:00 pm at the Miami Beach Convention Center, Miami Beach, FL, the U.S. Department of Commerce will host a forum on realizing the benefits and addressing the challenges of textile and apparel trade within the Western Hemisphere. There is no charge to attend the forum, but registration is required. For more information, please contact Richard Stetson at 202-482-2582
(Richard_Stetson@ita.doc.gov) or Laurie Mease at 202-482-2043(Laurie_Mease@ita.doc.gov).

Thursday, March 27, 2008

Tariff Classification of Weft Pile Upholstery Fabric from China

In a March 20. 2008 letter U.S. Customs and Border Protection ruled (NY N022806) that polyester/nylon blend woven fabric of weft pile upholstery fabric from China is classified as 5801.33.0000. Duty rate is 9.8%)

Tariff Classification of Chinese Yarn of Wool and Milk (Casein)

In a March 25, 2008 letter, U.S. Customs and Border Protection ruled (NY N024939) that Chinese yarn of 50% wool / 50% milk (casein) is classified as 5510.20.0000. Rate of duty 10.2%.

CPSC Staff to Attend Apr. 2nd Test Methods for Flammability of Textiles Mtg. in Belgium

On Wednesday, April 2, 2008, Allyson Tenney of the Consumer Product Safety Commission's Directorate for Engineering Sciences will be attending a meeting of CEN/TC 248/WG 24-Test Methods for Flammability of Textiles; rue Montoyer 24, Brussels, Belgium. For additional information contact Allyson Tenney, (301) 504- 7567.

122,000 Plush Toys from China Recalled

The U.S. Consumer Product Safety Commission March 27th announced a voluntary recall of 122,000 Rock ‘N Ride Plush Rocker Toys sold at: Wal-Mart, Toys “R” Us, Kmart, Target, Atwoods, and Pamida stores nationwide and Internet retailers from September 2007 through March 2008 for about $30. The textile-covered toys were manufactured in China. Consumers should stop using recalled products immediately unless otherwise instructed.

Wednesday, March 26, 2008

Gov't Documents "difficult state of the industry" for Upholstery Fabrics

On March 4, 2008 the Consumer Product Safety Commission published (73 FR 11701) Standard for the Flammability of Residential Upholstered Furniture; Proposed Rule which included as part of the rule-making process a survey of Products and Industries Potentially Affected. According to CPSC (emphasis added):

[i]n just the last few years the U.S. industry has been shaken by the decreased demand for domestically-produced fabric as a result of increased competition from imported upholstery fabric, the increased popularity of leather upholstery, and the dramatic increase in consumption of upholstered furniture imported from China.
One of the largest marketers of upholstery fabrics in the U.S. reported that the trend to greater foreign competition and the entry of more converters of upholstery fabric (companies that purchase and resell fabrics) has resulted in greater fragmentation of the upholstery fabric industry in recent years, with lower barriers to entry, and an increase in competition based on price.
In addition to declining sales for the leading U.S. upholstery fabric manufacturers, the difficult state of the industry is evidenced by recent bankruptcies of firms that were once industry leaders, such as Joan Fabrics (previously the number one upholstery manufacturer) and Quaker Fabric (previously the number three firm). Both of these firms ceased operations and their production facilities were liquidated in 2007.
[I]t is likely that nearly all manufacturers of upholstery fabrics could be considered small businesses under SBA guidelines.
The U.S. Census Bureau reported that U.S. upholstery fabric production in 2004 was 284 million square yards (which is the equivalent of 189 million linear yards).
This production was 43 percent lower than 2002's reported production of 499 million square yards (332 million linear yards) of upholstery fabric.
The number of looms in operation for the production of these fabrics totaled 2,610 at the end of 2004, down 20 percent from 3,098 looms at the end of 2002.
Until recent years, relatively little upholstery fabric was imported. A report by Keyser Ciprus, Ltd., estimated that 8 million linear yards of residential upholstery fabric were imported in 1997. That accounted for approximately 2 percent of total consumption of upholstery fabric for residential furniture production in that year. However, as noted above, foreign upholstery fabric production facilities (located primarily in China) have expanded operations and imports of upholstery fabrics have grown substantially.
Much of the foreign production is from facilities that are owned or operated in partnership with U.S. textile firms. For example, Culp, Inc., reported that almost 60 percent of their sales of upholstery fabrics in their fiscal year ended April 29, 2007, consisted of fabrics produced in plants outside the U.S., compared to 17 percent of sales just two years before. Culp owns and operates four upholstery plants in Shanghai, China, and markets other fabrics from third party sources which are also located in China. The firm only has one remaining upholstery fabric plant in the U.S., down from fourteen in 2000. Culp's experience in shifting production to foreign plants has also been reported by other U.S. upholstery fabric manufacturers. In January 2007 Richloom Fabrics Group shifted production of its Berkshire Weaving upholstery line from its South Carolina plant to a facility in Shanghai. Quaker Fabric Corporation also entered into business agreements in recent years with Asian firms to produce fabrics it designs.
Quaker estimated that, industry-wide, about 42 percent of total domestic upholstery fabric sales (excluding automotive fabrics) were imported in 2004, versus only 11 percent in 2002. The company's management believed it was likely that the trend continued, and it estimated that about 60 percent of furniture upholstery fabric sales were imported by the end of 2006.
Quaker Fabric, which had long been a major U.S. producer of upholstery fabric, could not successfully adjust its operations to meet the recent market shifts, and the firm liquidated its operations in 2007.
At least until recent years, exports of upholstery fabric were significant for many U.S. manufacturers. In the late 1990s as much as 20 percent of the upholstery fabric production by U.S. manufacturers in recent years may have been exported. As noted above, more upholstery fabric is being imported from China and other foreign sources in more recent years, and some major U.S. fabric manufacturers have established production facilities in China, or have established business relationships with Chinese firms to produce fabrics to their specifications and designs. These market changes could be expected to reduce exports by domestic firms from previous levels.
There is a growing practice, especially for leather, to purchase fully cut and sewn parts from areas outside of the United States including but not limited to: Argentina, Brazil, China, Italy, Thailand and Uruguay. This trend should continue given the lower labor costs in some of these areas and other existing economic conditions.
La-Z-Boy reports that importing cut and sewn leather parts results in savings of 10 to 20 percent compared to domestic purchases and fabrication of these parts.
Culp reports that it rapidly expanded its cut and sew operations in its Shanghai plants.

Eurosatory Land and Land-air Defense Trade Show June 16-20

Held biannually, Eurosatory is the premier land and land-air defense trade show serving the global defense market. High-ranking visitors from the military attend, including defense ministers, chiefs of staff, senior army commanding generals, top government decision makers, ministers of defense and corporate officials attend to learn of new trends, find out about future equipment and systems and to assess developments in defense and security force requirements. Eurosatory 2008 is also the place where the latest innovations and technologies of use to the forces is presented. Eurosatory 2008 brings together small- and medium-size companies, subcontractors and suppliers and the major international manufacturers to meet with key military and government decision makers from 120 countries. The show is not open to the public.

An audience of 48,000 international visitors from around the world attended Eurosatory 2006 with 1100 exhibitors from 47 countries of which 47% were small-and medium-sized enterprises. 110 Official Delegations from 69 countries attended the 2006 event.

The U.S. Department of Commerce Office of Textiles and Apparl (OTEXA) maintains a USA Business Information Office (BIO) at Eurosatory 2008 for up to 10 qualified U.S. manufacturers and suppliers of military/defense and industrial/technical textiles. Participants in this catalog/sample show will receive a package of services, including the collection of leads that will be sent to each company in a spreadsheet after the show, promotion of samples and pre-show publicity.

COST: $700 for 4-5 samples not to exceed 20 yards or four book samples, company literature and business cards. Shipment of samples to and from Eurosatory 2008 is the responsibility of the participant. You will be able to ship to the APO mailing address if samples are sent on a timely basis. Otherwise courier packages can be delivered to the U.S. Commercial Service Office in Paris. We can offer shipping information for the show upon request.

WHY SHOULD YOU EXHIBIT? World military expenditure increased by an average of 6% per year between 2002 and 2004 and is expected to continue its strong growth for at least the next several years. Our results at Techtextil 2007 in Germany, Defense Services & Equipment International (DSEi) 2007 in London and other recent military shows have indicated a strong need for U.S. technical textiles ranging from apparel to geotextiles.

For additional information or if you would like to receive a participation kit, please contact Mary Lynn Landgraf at (202) 482-7909 or Mary-Lynn_Landgraf@ita.doc.gov or. You may also send a fax to (202) 482-2859.

NTA/AFA To Exhibit at Techtextil April 1-3

The fifth edition of Techtextil North America will be held April 1–3, 2008, at the Cobb Galleria Centre in Atlanta, Georgia.

As the most comprehensive North American trade show and symposium for technical textiles and nonwovens, the world’s leading companies in the industry will meet for education, networking and business development.

The National Textile Association and the American Flock Association will be participating in Techtextil. Come see us in booth #2132. Our participation in Techtextil is being coordinated by Tom Witham of Spectro Coating Corp. an American Flock Association member company with a textile flocking operation in Leominster, Massachusetts. Thank you Tom! Volunteers to assist in staffing the booth are most welcome.

Tuesday, March 25, 2008

NTA Supports Extension of Wool Program

Representative Louise Slaughter [NY 28] and Representative Melissa Bean [IL-8] have introduced H.R.4831, a bill to extend the temporary duty reductions and suspensions on certain wool products, and for other purposes. NTA supports H.R.4831 as drafted to extend the entirety of the wool TRQ, duty suspension, payment, and trust fund package.

The current wool program represents a carefully crafted compromise, supported by all interested parties in the wool production chain. For example, while the existing program allows for a limited amount of annual wool fabric imports into the U.S. at significantly reduced duty rates, it also establishes a trust fund for domestic wool fabric producers which helps to offset losses derived from the tariff reductions. Critical aspects of the legislation to domestic yarn and fabric producers such as our company are due to expire in 2009. Failure to extend this legislative program will create substantial uncertainty in the market with possible severe consequences for the thousands of U.S. workers that are involved in the production of wool fiber, fabric and apparel.

Reminder: "First Sale" Comments Due Apr. 23rd

On January 24, 2008, a notice was published in the Federal Register (73 FR 4254) informing interested parties that Customs and Border Protection (CBP) proposed a new interpretation of the phrase ``sold for exportation to the United States'' for purposes of applying the transaction value method of valuation in a series of sales importation scenario. Under this proposal, in a transaction involving a series of sales, the price actually paid or payable for the imported goods when sold for exportation to the United States is the price paid in the last sale occurring prior to the introduction of the goods into the United States, instead of the first (or earlier) sale. As a result, transaction value will normally be determined on the basis of the price paid by the buyer in the United States. This proposed interpretation reflects the conclusions of the Technical Committee on Customs Valuation as set forth in Commentary 22.1, entitled ``Meaning of the Expression `Sold for Export to the Country of Importation' in a Series of Sales.''

Comments are due on or before April 23, 2008.

Textile Industry Coalition on Government Procurement to Meet October in Charlotte

The National Textile Association will host a meeting of the newly created Textile Industry Coalition on Government Procurement in conjunction with the Industrial Fabrics Association International (IFAI) three-day program of trade show and seminars in Charlotte, North Carolina on October 21-23. Textile industry coalition members are

"The NTA Government Textiles Committee and other member organizations in the newly-formed Textile Industry Coalition are pleased to join with IFAI for this important three-day program of trade show and seminars," said NTA chairman Jim Robbins of Elastic Fabrics of America. "Obviously there are significant economies of scale in working together on a joint program with IFAI. But more importantly, valuable work on issues of government procurement will be available to a larger textile audience and our military and government guests will be able to meet with the representatives of every sector of the domestic U.S. Textile Industry during the Monday afternoon golf outing, at dinner that evening, and at the day-long conference planned for Tuesday."

The TENTATIVE schedule has the GTC and Coalition members joining the IFAI golf outing on the afternoon of Monday, October 20th with the day-long program of military, government, and related speakers to follow on Tuesday, October 21st. Registration will be through IFAI and details will be announced soon.

"The Textile Industry Coalition on Government Procurement, formed by NTA, is a terrific step forward which will enable our military customers to work on industry-wide issues with a single textile industry voice," said Bruce LaFlam of Milliken and Company and chairman of NTA's Government Textiles Committee. "The new coalition, comprised of most U.S. textile companies that make products for defense uses, will build on the excellent work of the NTA’s Government Textiles Committee over the past three years. The Coalition’s first conference on October 21 in Charlotte, immediately preceding the IFAI Exhibit and Conference, should be invaluable to both the industry and DoD personnel in learning more about procurement issues. We view the event as a big step forward in maintaining openness and cooperation between our industry and our military customers.”

The Textile Industry Coalition will coordinate textile industry interests with the Group of Six, which has been working with DoD for the past three years to improve textile and apparel procurement practices. The Group of Six includes two representatives from NTA, two representatives from the American Apparel & Footwear Association, and one representative each from the Parachute Industry Association and Clemson Apparel Research.

Tariff Classification of Cotton Sheets and Pillowcases from India

In a March 20, 2008 letter, U.S. Customs and Border Protection ruled (NY N024371) that Indian origin cotton pillowcase are classified as 6302.31.5010 and Indian origin cotton flat sheet are classified as 6302.31.5020. Both articles have rate of duty rate of 20.9%.

CPSC Publishes Revised Textile Flammability Rule

March 25, 2008, Federal Register (73 FR 15636) the Consumer Product Safety Commission published Standard for the Flammability of Clothing Textiles; Proposed Rule

The Commission is amending its flammability standard for general wearing apparel, the Standard for the Flammability of Clothing Textiles, 16 CFR part 1610. The Standard, originally issued in 1953, has become outdated in several respects. The revisions better reflect current consumer practices and technologies and clarify several aspects of the Standard. The rule is effective September 22, 2008.

FOR FURTHER INFORMATION CONTACT: Mary Toro, Directorate for Compliance and Field Operations, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; telephone (301) 504-7586; e-mail mtoro@cpsc.gov.

NTA members are directed to our website for more information

Monday, March 24, 2008

Wanted 3-Yarn, 20 Gauge Circular Knit Fleece

NTA has been contacted by an international trade and customs law firm representing a client who is interested in sourcing a 3-yarn, 20 gauge cotton/polyester circular knit fleece in the DR-CAFTA region. For the specifications and specific performance criteria contact David at NTA at dtrumbull@nationaltextile.org by April 8th.

Although it is not stated in the inquiry, it is the opinion of NTA that the law firm is planning to file a DR-CAFTA "short supply" request with respect to this fabric.

Textile Museum Launches Blog

Jim Coleman President & CEO of the American Textile History Museum--which is conveniently located in Lowell, Massachusetts, the first city to be built around industry and textiles was the industry--has launched a blog

http://www.athm.org/blog/index.php.

NTA Welcomes Steve Trastelis to Board

On March 18, 2008 at a meeting in New York City, the Board of Government of the National Textile Association voted Steve Trastelis a Director. Mr. Trastelis is Corporate Vice President of Microfibres, Inc. a manufacturer of high performance stain-resistant flocked fabrics for the upholstery, furniture and specialty products markets, with facilities in Pawtucket, Rhode Island and Winston-Salem, N.C. Mr. Trastelis will also represent Microfibres on NTA's Upholstery Fabrics Committee.

Plan to Join NTA in October at IFAI Expo

NTA's Government Textiles Committee will meet on Tuesday, October 21st in Charlottee, N.C. in concert with the Industrial Fabrics Association International (IFAI) Expo '08 Trade Show and Symposiums.

“The National Textile Association Government Textiles Committee is pleased to join with the Industrial Fabrics Association International this important three-day trade show and seminars event," said NTA chairman Jim Robbins of Elastic Fabrics of America. "Through this partnership, our valuable work on government procurement will be available to a large textile audience. Our military and government guests will be able to meet with the representatives of every sector of the U.S. textile industry during our networking events and seminars."

The program will begin on Monday, October 20th with the Third Annual Industrial Fabrics Foundation Golf Tournament. NTA members and other participants will enjoy a great day of golf knowing that a percentage of your fees go to support textile-related scholarships and industry research. Our guests from the military and government agencies will join NTA for Monday dinner to be followed by a full-day program of presentations and round table discussions on current topics in military and government procurement and supply chain logisitics.

Details and registration materials will be published in April.

Friday, March 21, 2008

Devito Wants Socks -- Defense Supply Logistics

Revised ETAC Schedule

Exporters’ Textile Advisory Committee (ETAC) -- April 23, 2008
1:00 p.m. – 4:00 p.m.
Ronald Reagan Building, Trade Information Center, Training Room “A”

1:00 –1:15 Welcome, R. Matthew Priest, Deputy Assistant Secretary for Textiles and Apparel, and ETAC Chairman

1:15-1:45 FTA Update, Janet Heinzen, Director, OTEXA

1:45-2:15 Colombia FTA Updates and Impact on U.S. Textile and Apparel Exporters, Richard Stetson, International Trade Specialist, OTEXA

2:15- 2:45 Export Opportunities in Secondary Markets in China, Amanda Douglas, International Trade Specialist, OTEXA

2:45-3:00 BREAK

3:00-3:15 Technical Textile Trade Mission to the Middle East: Report and Results, Mary Lynn Landgraf, International Trade Specialist, OTEXA

3:15-3:45 Possible Trade Mission to Japan, Singapore, Macau, and/or Taipei, fall 2008, Larry Brill, International Trade Specialist, OTEXA

3:45-4:00 Round Table, Adjournment

David Ryan Quoted in Furniture Today

David Ryan, Director of Quality for Craftex Mills, represented NTA's Upholstery Fabric Committee at the March 20, 2008, American Home Furnishings Alliance flammability update in Greensboro, N.C. According to a report in Furniture Today

David Ryan, representing the National Textile Assn. Upholstery Fabric Committee, voiced opposition to the proposed standard, noting that many small mills don’t have the staff to do the testing required and that using barriers would be preferable.

Ryan, director of quality for fabric source Craftex, said his company has 10,000 fabric constructions and would have to spend $2.5 million the first year on testing. The standard would “jeopardize smaller decorative fiber mills already threatened by imports.”

Thursday, March 20, 2008

Exporters’ Textile Advisory Committee Meeting April 23rd, Washington, D.C.

Exporters’ Textile Advisory Committee (ETAC) -- April 23, 2008

1:00 p.m. – 4:00 p.m. -- Ronald Reagan Building, Trade Information Center, Training Room C

1:00 –1:15 -- Welcome
R. Matthew Priest, ETAC Chairman

1:15-1:45 -- FTA Update
Janet Heinzen, Director Trade Data Division, OTEXA

1:45-2:15 -- Colombia FTA Updates and Impact on U.S. Textile and Apparel Exporters
Richard Stetson, International Trade Specialist, OTEXA

2:15- 2:45 -- Export Opportunities in Secondary Markets in China
Amanda Douglas, International Trade Specialist, OTEXA

2:45-3:00 -- BREAK

3:00-3:15 -- Technical Textile Trade Mission to the Middle East: Report and Results
Mary Lynn Landgraf, International Trade Specialist, OTEXA

3:15-3:45 -- Possible Trade Mission to Japan, Singapore, Macau, and Taipei Fall 2008
Larry Brill, International Trade Specialist, OTEXA

3:45-4:00 -- Round Table, Adjournment

Contact Larry Brill Lawrence_Brill@ita.doc.gov

Tariff Classification of Pillowcases from India

In a letter dated March 12, 2008, U.S. Customs and Border Protection ruled (NY N024082) that pillowcases of Indian origin made from 100 percent cotton woven fabric, not printed nor napped, with the open end featuring a 4-inch wide self hem held in place by a row of single needle stitching, and with a row of decorative embroidery in a rope like design added over the finished hem, are classified as HTSUS 6302.31.5010. The duty rate will be 20.9 percent ad valorem.

CPCS's Patty Adair to Meet with Phila. Univ.'s David Brookstein on Formaldhyde in Textiles

Consumer Product Safety Commission staff Patty Adair, Directorate for Engineering Sciences, Mary Toro, Office of Compliance, and Jack Horner, Office of Congressional Affairs, will meet March 27th with Dr. David Brookstein, Philadelphia University’s Institute for Apparel and Textile Safety (ITAPS), to discuss issues related to formaldehyde and textiles; 9:30 a.m., Philadelphia University Research Center, 4145 Station Street, Philadelphia, PA 19127. The meeting was requested by ITAPS. For additional information contact Patty Adair, (301) 504-7536 or padair@cpsc.gov.

Wednesday, March 19, 2008

CAFTA Pocketing Modifications Will Soon be Implemented

As published on the OTEXA website--Modifications to the rules of origin for certain apparel products under the CAFTA-DR will soon be implemented. Interested parties are advised to take note and be prepared for the upcoming changes. Please refer to the Presidential Proclamation for complete modifications. Effective with respect to goods that are entered, or withdrawn from warehouse for consumption, on or after the dates announced by the United States Trade Representative and published in the Federal Register, the Agreement’s rules of origin are modified in such ways as follows:

Hafner to Cease Canadian Weaving Operations

According to a report in Furniture Today of March 19, 2008, Granby, Quebec textile producer Hafner Inc. will cease operations at its Canadian weaving plant on May 2, effectively ending its furniture fabric sales in Canada and the United States. The closing will affect about 70 jobs.

Friday, March 14, 2008

Analysis of Colombia Agreement

NTA has prepared for our members a detailed analysis of the U.S.-Colombia Trade Promotion Agreement.

Q & A With USTR on Colombia Trade Agreement

For Immediate Release March 12, 2008 -- PRESS BRIEFING BY AMBASSADOR JOHN VERONEAU, DEPUTY U.S. TRADE REPRESENTATIVE, DAN FISK, DIRECTOR OF WESTERN HEMISPHERE AFFAIRS FOR THE NATIONAL SECURITY COUNCIL, AND CHRIS PADILLA, UNDER SECRETARY OF COMMERCE FOR
INTERNATIONAL TRADE

...

Q I have two quick questions, please. Sorry for the focus on process, but I'm a bit confused. The President today called for a vote this year, but where does this stand? Has Congress agreed to hold a vote, or is that still a matter of debate?

AMBASSADOR VERONEAU: Well, under Trade Promotion Authority, what used to be known as Fast Track, which has been in place for many Presidents and many Congresses, there's a quid pro quo. And the obligation of the administration is to consult with the Congress in the course of negotiating, which obviously we have done. And I don't think anyone is disputing that fact, including making changes to the agreement after it was initially agreed to with Colombia.

Congress's part of that quid pro quo is when the President sends it up, there's a vote on it. So that is -- our expectation is, since we have done everything we have been asked to do, it is Congress's turn to do what it is supposed to do under TPA.

Q So it's just a matter of when. The timing is uncertain, but it will happen.

AMBASSADOR VERONEAU: I think the President's speech today speaks for itself, that there will be a vote on this agreement.

Q And given all of the negotiations you've described on the different fronts, what's your understanding of where the hang-up is? Where are we right now?

AMBASSADOR VERONEAU: We are not sure what more -- we have not been asked to do more by the leadership. We have done what we were asked to do -- namely, change the agreement and provide credible evidence of progress with regard to violence and impunity. We have done that, so there is no "ask" before us that we have not fulfilled.

Q Let me ask several questions in response to Ben's. Clearly, there's a reason for today's push. Is the -- have you not gotten an indication from the relevant committee chairs that this will be acted on when the President sends the agreement? Is that why you're talking to us?

AMBASSADOR VERONEAU: One of the messages today is that under TPA, under the process, in order to assure a vote we are very close to the point where that agreement -- the agreement needs to be sent. We continue to work with, or try to work with, the congressional leadership to agree on a path forward, but the message today --

Q But you don't have that yet.

AMBASSADOR VERONEAU: We do not have that yet.

Q So the relevant committee chairs have not given you any assurance that there will be a vote on this legislation that you are now prepared to send to them?

AMBASSADOR VERONEAU: There is no agreement -- there is no bipartisan agreement right now on a path forward.

Q Okay, that's one. Two, what is the problem with the drug trade, and how does that weigh into this?

MR. SPICER: Wendell, hold on one second. John, I'm sorry, can you just explain real quickly the process of the 45 so that -- because that answers, I think, Wendell's question. It's -- the 45 in both the committees --

AMBASSADOR VERONEAU: Yes. Under Trade Promotion Authority procedures, once an agreement goes up, the Ways and Means Committee has 45 days in which to act upon it. And then the House floor has 15 days to act upon it. That gets you to 60 days.

Q And somehow you get to 90.

AMBASSADOR VERONEAU: And then the finance committee then has 15 days to act upon it. And then the Senate floor has 15 more.

Q But somewhere in this process, you have not been assured that they will deal with it. Where's the hang-up? Who's the hang-up, should I ask?

AMBASSADOR VERONEAU: Well, we have not been able to reach a process agreement of a way forward, and we are now getting to the point where, absent that process agreement, the President has a decision to make, and today he indicated his views on that matter.

Q Is it more than one committee chair? Is it just one? Is it the leadership of the House and the Senate, just one side? Where's the problem?

AMBASSADOR VERONEAU: We don't have an agreement with either House or Senate leadership.

...

Q Can I ask just one more? Do you think this is just caught in politics? Do you think a free trade agreement is simply something the Democratic-led Congress does not want to vote on in a presidential election year?

AMBASSADOR VERONEAU: Well, they voted on the Peru agreement just a couple of months ago, but -- Chairman Rangel made a statement last week or the week before that you should look at, because he spoke to the question of politics versus facts.

Q Thank you.

Q You talk about wanting to engage with Democratic leadership to negotiate a bipartisan path forward. What would be on this path? I mean, in exchange for voting on the Colombia agreement, what would you give them? I mean, are you going to agree to -- like, for example -- I don't know if it's sufficient, but they have a lot of interest in a revamped trade adjustment assistance program.

I know Bush -- President Bush says repeatedly that he supports a rebound program and working on legislation to modernize that, but they have very specific demands, like they want to include service workers; they want to extend it to countries that don't have -- to workers who lose their jobs as a result of trade; countries that don't have FTAs; they want to expand the health care tax credit. They want other things -- I don't remember them all, but they have a certain list of demands. And I don't know if meeting those demands are sufficient to get them on board for the Colombia agreement. But what is it that would be on this bipartisan path that would give them some incentive to vote for an agreement that they clearly do not want to vote for?

UNDER SECRETARY PADILLA: We don't know. (Laughter.) We're asking, and we don't know. The reason you asked why we're here today? We have engaged for months -- Ambassador Veroneau has participated in meetings. I've had meetings with very senior meetings of the Congress and said very clearly, here are the reasons for the agreement. And what we've heard is, we understand Colombia is an ally, so on and so forth. And then we say, well, what do we need to do to get this agreement the vote that it deserves? And we don't have an answer for you.

And so I think the President's message today was clear: We are running out of time, and this agreement is too important simply to put it aside or put it in a drawer? And I can't be any clearer than that. It's the dilemma that we're facing.

AMBASSADOR VERONEAU: And the two things that we've been asked to do -- namely, change the agreement, and in particular, the labor and environment provisions -- we did; and the second thing we were asked was to show credible evidence of improvements in these areas -- we've done that, as well.

UNDER SECRETARY PADILLA: I might add that the President of Colombia has extended an open invitation to any member of Congress to come and visit his country, to meet with him and his entire cabinet, and see for themselves the progress. More than 30 members of Congress from both sides of the aisle have taken up that invitation. None of the leadership has taken up that invitation. I believe it still stands.

...

Q One of you said a few minutes ago that the President has a decision to make. By that do you mean, send it up and take your chances, or put it in a drawer. Is that what you meant?

AMBASSADOR VERONEAU: No. I meant, what he made -- what the President made clear today is that this agreement -- there will be a vote on this agreement.

Q How does he assure that? I mean, that depends on the leaders, doesn't it?

AMBASSADOR VERONEAU: Well, there's -- what the President can do is send the agreement up. Twelve Presidents and probably three dozen Congresses have operated under this contract of Fast Track or TPA, so we would expect that contract would continue to be honored, because we have done our part, which is to consult with the Congress in the course of those negotiations.

Q So what was meant by the President has a decision to make? What decision is it?

AMBASSADOR VERONEAU: A decision of when -- when to send it. As I said earlier, we will leave no stone unturned in an effort to get a common understanding of a way forward. But at some point, absent that common understanding, the President has a decision to make of when to send it.

Q Okay. And given you have 90 legislative days, you're going to send it up within the next, what, month or two?

AMBASSADOR VERONEAU: Well, as the President said in his remarks, time is running very short.

Q But is there any dates you have in mind? What recommendations would you have?

AMBASSADOR VERONEAU: I will make recommendations privately.

Q I have a follow-up on that 90-day period in the Congress. Is there someone in the Congress with authority to halt this process? I mean -- I understand that the Speaker, for instance, has the power to stop the process if she gets a change in the rules. I am correct or not?

AMBASSADOR VERONEAU: Well, first I would say that sending -- if there is no common agreement of a process under which the President would send the agreement, I want to be clear that that does not mean that the conversation stops as to addressing some of the concerns that have been raised. There's still time -- the President sending it up does not mean there will be a vote the next day on this agreement. There is still time in that process after it is sent to obviously address concerns that members have.

With regard to the specific question, it's never -- the agreement has never been broken before. We have done our part: consulted, and tried to reach an agreement on a path forward. So we would be surprised if that agreement were not honored, but cannot foresee a scenario where there would not be some vote on this agreement. And there's -- this agreement is too important not to vote on, and there will be a vote -- I can't speak to the congressional leadership as to what process they would envision, but there would be a vote of some type on this agreement. And it is important to understand that rejecting this agreement through a substantive vote or a procedural vote has tremendous implications for the standing of the United States in the region, for all the reasons that the President laid out in his speech, and for the reasons that Dan laid out.

UNDER SECRETARY PADILLA: That's why not voting is simply -- that's why the agreement deserves a vote. Not voting, particularly with other of Colombia's neighbors now having free trade agreements, with investors pulling out of Colombia and going elsewhere, seeking certainty -- delay hurts Colombia, and not voting on the agreement has the same effect on investors as taking it up and defeating it.
So our important point is that the agreement deserves a vote, and I think, as Ambassador Veroneau said, that's what the President's message was today.

Q So what happens if you do get this bipartisan path forward? What -- would the President hold off sending it up in the near term, on the promise that Congress will take it up, and risk letting the clock run out? I mean, what would change?

AMBASSADOR VERONEAU: Well, the conversation that we have been trying to have is to address any additional issues that have been raised that -- I've mentioned the two issues that have been raised to us that we feel we've addressed -- and to have a path forward to address other issues in a common way; and as part of that, to have a process that assures a vote by a date certain. That is the conversation we've been trying to have.

Thursday, March 13, 2008

NTA Applauds NCTO's New Customs Fraud Report Tool

On January 14, 2008 the National Council of Textile Organizations (NCTO) announced that it had begun an online customs fraud reporting system and was distributing new customs fraud reporting urging anyone who is aware of customs fraud in textiles and apparel to utilize the forms. NTA applauds NCTO initiative and is pleased to assist in data collection for this important undertaking.

The new tools include a one page form that can be filed out online and sent electronically to NTA for forwarding to NCTO on a confidential basis. NCTO will then forward the information to U.S. Customs and can, if requested, delete the reporter’s name. All information will be held on a business confidential basis. The new forms are available at http://www.nationaltextile.org/library/ipr/NCTO_Fraud_Alert_Form.pdf as well as on NCTO's website.

The forms were developed in consultation with the U.S. Customs and Border Protection and are designed to streamline the reporting process and provide more detailed information to U.S. Customs and Border Protection.

Wednesday, March 12, 2008

U.S.-Colombia Trade Promotion Agreement to Go to Congress Soon after March

Inside U.S. Trade U.S. reports Trade Representative Susan Schwab today (March 12) saying that the Bush administration plans to send the U.S.-Colombia Free Trade Agreement (FTA) to the Congress for a vote “very, very soon” after the March recess, even if the Democratic leadership fails to signal its acquiescence to such a step.

The spring recess is March 17th to 28th.

National Textile Association Headline Animator