In a high-stakes testimony before the Office of the United States Trade Representative (USTR), Kim Glas, President and CEO, National Council of Textile Organizations (NCTO), has outlined counter proposal to the current textile mechanism proposed under the Section 301 forced labor investigations. Glas argued, if implemented without significant modification, the administration’s existing framework could inadvertently jeopardize domestic manufacturing jobs rather than securing the supply chain against exploitative labor practices.
Strengthening domestic capacity through targeted reforms
NCTO’s counter-proposal is based on three critical reforms to ensure the mechanism serves as a catalyst for domestic growth. First, the organization is pushing to exclude raw cotton from the textile mechanism, warning, its inclusion would discourage the use of US-grown fiber and further incentivize the relocation of spinning and weaving operations to Asia. Second, the council advocated for the exemption of textile machinery and specialized inputs—those currently unavailable within the US - from additional Section 301 duties to prevent penalizing domestic manufacturers who require global equipment to remain competitive. Finally, the NCTO is urging the administration to finalize an innovative incentive program that incentivizes sourcing from the Western Hemisphere, a strategy the group estimates could create over 56,000 jobs.
Protecting the US value chain against unfair competition
The core of the NCTO’s testimony rests on the assertion that forced labor creates an artificial and predatory cost advantage that displaces US producers both domestically and abroad. By leveraging trade policy to support the U.S.-Mexico-Canada Agreement (USMCA) and the CAFTA-DR corridors, the NCTO maintains that the administration can revitalize the sector. The administration now has the opportunity to take meaningful actions to defend the industry from unfair trade practices, Glas stated in her submission. As the USTR weighs these proposed actions, the textile sector remains at a crossroads where trade enforcement will either reinforce regional supply chain integrity or deepen the reliance on volatile, labor-exploitative markets.
Strengthening domestic production capacity
The National Council of Textile Organizations (NCTO) serves as the primary trade association for the U.S. textile industry, representing the entire value chain from fiber to finished sewn products. The organization focuses on trade policy advocacy, strengthening domestic manufacturing capacity, and ensuring ethical supply chain compliance in global markets.
