The National Council of Textile Organizations (NCTO) has emphasized the need for urgent and comprehensive reform to US de minimis trade laws to combat China's abuse of the current system, which adversely impacts American manufacturers and supports forced labor in China's Xinjiang region.
The statement was made by NCTO President and CEO Kim Glas following the House Ways and Means Committee's markup of HR 7979, legislation related to de minimis trade.
Glas acknowledged the efforts of Chairman Jason Smith (R-MO) and Rep. Greg Murphy (R-NC) for addressing China's exploitation of US trade laws, but insisted on stronger measures to prevent China from taking advantage of loopholes. Glas expressed concern that half-measures could allow China to continue harming American industries and workers.
The textile industry has suffered significantly from duty-free imports from Chinese e-commerce retailers like Shein and Temu, leading to the closure of 14 manufacturing plants in recent months. Glas called the situation a "five-alarm fire" and reiterated the urgent need for a robust, enforceable solution.
NCTO urges Congress to fully address the abuse of the de minimis loophole, highlighting the importance of excluding trade-sensitive sectors such as textiles and apparel from de minimis benefits. Glas praised the work of Ways and Means Trade Subcommittee Ranking Member Earl Blumenauer (D-OR) for proposing the Import Security and Fairness Act, which would block all Chinese products from qualifying for de minimis benefits.
In summary, NCTO seeks stronger reforms to end China's exploitation of de minimis trade laws and protect American industries from unfair competition and forced labor practices.
