NCTO hails US decision on WTO Chinese textile subsidy case

The National Council of Textile Organizations (NCTO) President Cass Johnson praised the decision by the United States government to join the consultations between Mexico and China regarding Chinese textile subsidies. 

"We are pleased that the U.S. is joining the consultations on this very important case.  For decades, large and comprehensive subsidies by the Chinese government have prevented free and fair markets from operating in world trade in textiles and apparel.  These subsidies have directly contributed to the loss of hundreds of thousands of U.S. textile workers.   The landmark case by the government of Mexico exposes the Chinese government intervention for exactly what it is – a mercantilist state-guided effort to control one of the world’s largest manufacturing sectors. “

Over the last eleven years, imports of Chinese textile and apparel products have increased by 523 percent or $34 billion and now total nearly $41 billion.  Chinese market share increased from 10 to 40 percent.    During the same period of time, 379,000 U.S. textile jobs were lost as trade shifted out of the Western Hemisphere.   Textile and apparel producers in Mexico, Central America and the Andean regions lost hundreds of thousands of manufacturing jobs as well. 

"The U.S. government decision to join the consultations sends a strong signal of support to the government of Mexico in this important case.”