The Office of Textiles and Apparel (OTEXA) in the U.S. Department of Commerce (DOC) is primarily responsible for developing programs and strategies to maintain and strengthen the competitiveness of the U.S. textile and apparel industries. The Office is headed by Deputy Assistant Secretary for Textiles and Apparel, R. Matthew Priest, who also serves as Chairman of the Committee for the Implementation of Textile Agreements (CITA). CITA is the interagency committee responsible for matters affecting textile trade policy, supervising the implementation of all textile trade agreements, and taking textile and apparel safeguard actions when appropriate. CITA includes representatives from the Departments of State, Treasury, Labor and the United States Trade Representative.

OTEXA staff conduct industry research and analysis, assist in the negotiation of trade agreements, find new market opportunities for textiles and apparel, develop supply chain and sourcing strategies, and execute U.S. textile and apparel trade policy.

OTEXA encourages the development of technical textiles (fabrics and end products) and promotes global brand awareness for these products by:  assisting in the development of new market opportunities through trade shows and seminars; promoting research and development through government, university and industry partnerships; and creating strategic alliances between domestic producers of technical textiles and the U.S. military to supply clothing and textiles to our Armed Forces.

U.S. Textile and Apparel Trade
The U.S. textile and apparel industry has faced particularly intense competition in the U.S. marketplace from products of low-wage developing countries. In 2007, U.S. imports of textiles and apparel were $96.4 billion, and U.S. exports were $16 billion.

Technical textiles have been a growth area for the U.S. textile industry, and it is a segment of the industry that is globally competitive. U.S. exports of industrial (technical) fabrics increased by 31 percent between 2003 and 2007, to $3.4 billion. Export growth to major markets, including the European Union, China and Hong Kong, Canada and Mexico, has been significant. Together, these markets account for over 80 percent of U.S. exports of industrial (technical) fabrics. The growth in exports indicates that U.S. producers of industrial fabrics continue to find new market opportunities for their products.

Source:  U.S. Department of Commerce, Office of Textiles and Apparel

                  U.S. Exports of Textiles and Apparel

Source:  U.S. Department of Commerce, Office of Textiles and Apparel

The leading textiles and apparel shippers to the U.S. in 2007 (ranked by value) were:

1.  China (PRC)
2.  Mexico
3.  India
4.  Vietnam
5.  Indonesia
6.  Bangladesh
7.  Pakistan
8.  Honduras
9.  Cambodia
10.  Italy

The fastest-growing textiles and apparel export markets from 2003-2007 were:

• Malaysia, Singapore and Thailand – up 54% to $205.9 million
• Brazil – up 153% to $130.1 million
• Middle East – up 76% to $294.9 million
• China – up 117% to $489.2 million

Free Trade Agreements
Free trade agreements (FTAs) have proven to be one of the best ways to open up foreign markets to U.S. exporters. Today, the United States has FTAs with 14 countries (Australia, Bahrain, Canada, Chile, Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Mexico, Morocco, Nicaragua and Singapore). Three FTAs have been approved by Congress but not yet implemented (Costa Rica, Oman and Peru), and three have been concluded but not yet approved by Congress (Colombia, Korea and Panama). In 2007, trade with countries with which the United States has FTAs was significantly greater than their relative share of the global economy. Although comprising 7.3 percent of global GDP (not including the United States), those FTA countries accounted for over 40 percent of U.S. exports.

With respect to textiles and apparel, these FTAs usually contain a separate textile chapter, which generally provides for reciprocal market access, a yarn-forward rule of origin (with exceptions), a safeguard mechanism, and customs cooperation to guard against transshipment.  In 2007, U.S. exports of textiles and apparel to our FTA partners represented 67 percent of total U.S. textile and apparel exports.

U.S. Textile and Apparel Trade with China

              
  Sources:  International Monetary Fund, World Economic Outlook Database   (Oct. 2007); U.S. Department of Commerce and U.S. Census Bureau

The Agreement on Textiles and Clothing (ATC), which came into force on Jan. 1, 1995 with the establishment of the World Trade Organization (WTO), provided for a 10-year quota phase-out process for WTO member countries, which resulted in the expiration of quotas on Jan. 1, 2005.

Although our broad spectrum of quotas on China terminated on Jan. 1, 2005 under China’s WTO Accession Agreement, the United States and other WTO member countries maintained the right, through the end of 2008, to impose quotas on imports of products which are disrupting or threatening to disrupt the U.S. market. On Nov. 8, 2005, the United States and China signed a Memorandum of Understanding (MOU) Concerning Trade in Textiles and Apparel. The MOU includes quantitative limits on imports from China of 34 individual product categories and will be in effect from Jan. 1, 2006 through Dec. 31, 2008. After the MOU expires at the end of the year, textile and apparel imports from China will be subject to normal WTO disciplines and U.S. trade remedy mechanisms.

Market Access and Compliance-Related Activities
In order to maintain U.S. textile and apparel competitiveness in global markets and to ensure access to world markets for American companies and workers so they can compete on a level playing field, OTEXA conducts research into U.S. access to foreign markets, reviews potential barriers to compliance with WTO and international trade agreements commitments and access for U.S. products, and initiates textile-specific market access and compliance cases. OTEXA develops plans to collaborate with U.S. industry on identifying and addressing trade problems affecting the U.S. textile and apparel industries. OTEXA provides information on foreign import requirements by country for the textile and apparel sectors, including product standards, labeling, tariffs, taxes and import documentation. The Office also monitors foreign subsidies practices affecting the U.S. textile and apparel sectors; evaluates compliance with WTO subsidies commitments; and consults with foreign governments regarding subsidies practices. 

Military Procurement of Textiles and Apparel
In the U.S., the Department of Defense is required by law to procure domestically manufactured clothing and textile products. This requirement is otherwise known as the Berry Amendment, and has the express purpose of maintaining a healthy, stable and competitive industrial base for these products in the U.S. Because of Berry, significant public, private and university resources are expended on the development of advanced textile materials for military applications. OTEXA works with the domestic industry to partner companies together to fulfill U.S. military procurement requirements. OTEXA provides training to companies interested in sales to the military and NATO, and to companies interested in exporting under the United States Foreign Military Sales Program. OTEXA is also a liaison between the domestic industry and the Department of Defense to ensure compliance with the Berry Amendment domestic source requirements.

Textile Research and Development
Fundamental to retaining our competitive edge in technical textiles is research and development. The National Textile Center, or NTC, is a federally-funded consortium for basic textiles research that is conducted at 8 universities. The grant funding is provided by the Department of Commerce, International Trade Administration, and the grant is administered by the Office of Textiles and Apparel. The basic research conducted at the eight universities has the specific goal of leading industry change through education and research to improve the global competitiveness of the U.S. fiber, textile, textile products and retail complex. The universities’ joint basic research has potential application for the development of advanced textile materials.

OTEXA Export Support
OTEXA is a one-stop source for exporting all types of U.S.-made technical, industrial and specialty textiles as well as home textiles and apparel. OTEXA maintains a multifaceted export program that responds to the interests and concerns of the industry; encourages, supports and facilitates export sales of U.S.-made textiles and apparel in key overseas markets; and provides information on how to take advantage of the preferential benefits of Free Trade Agreements. Our program includes export counseling, seminars on a variety of export-related topics, market research designed to identify key export opportunities, and facilitation of participation in trade missions and major international trade events, such as Techtextil.

The Office of Textiles and Apparel is committed to helping the American technical textile industry remain competitive in this increasingly global marketplace. We endeavor to promote greater cooperation with the U.S. technical textile industry and the advancement of its products.  For questions or comments, contact Maria D’Andrea, U.S. Department of Commerce, Office of Textiles and Apparel at (202) 482-1550, or visit the OTEXA Web site at www.otexa.ita.doc.gov.