US VIVACIOUS TEXTILE INDUSTRY OF THE WORLD SLAP BY ASIAN INDUSTRIALIST

July 5, 2011

US textile industry

The textile industry of the United States has changed over the past 20 years. Now high-tech industry and competitive. US have the most modern and productive textile industry in the world.
One of the first realizing that technology – is key to future success in the industry, US manufacturers began to invest huge capital to carry out various research and development of new technologies in production. The result of these investments was the establishment of durable nylon, safe, high-strength aramid fibers, etc.
Changed and the basic rules of production. Large scale, mass production methods, which brought huge profits the last 50 years, now can not guarantee strong position in the market. Consumers demand quality, affordable prices, wide selection of products and rapid response to emerging needs. Therefore, the industry undergoes dramatic changes from mass production of the past to moving manufacturing technologies of the future.
In the future, successful companies must be able to quickly and cost effectively produce large or small number of products in response to market demands.
The future calls for the introduction of a new manufacturing process that allows switching from product to product with zero downtime, whether it’s twisting of the fibers or fabric staining. Success requires technologies that enable companies to produce a small amount to the cost of clothing appropriate to mass production.
And at this stage the company continues to actively invest cash in the hope of future success.
But not all is rosy.
The last few years a large number of light industry companies are trying to find means to survive in the prevailing circumstances. US textile industry is in a protracted crisis. This crisis has its roots in the 1980s and 1990s, err. When governments in many Asian countries had reckless fiscal and economic policies to boost economic growth. And in 1997-98gg. This policy has resulted in that country one after another, experienced the collapse of currencies. Their currency has never been provided and in fact in 2000, began to fall again. Today, the value of national currencies of Asian countries 10 largest exporters of textile products following an average of 40% higher than before the crisis.
As a result, prices for Asian yarns and fabrics have fallen to very low levels. According to the Commission on International Trade in the US between 1996 and 2000. The average price of Asian yarn imported into the country fell by 38%, from $ 3.36 / kg to 2.47. The average price of imported fabrics declined by 32% to $ 1.39 / lm to 1.07. With such artificially discounted imports from Asia has increased many times. Currency devaluations before imports of textiles and clothing from Asian countries were a relatively stable or declining. The industry can not deal with the rapid flow of Asian imports to the US cheaper products, following the devaluation of the currencies of the countries in the Middle East. In 2002, imports of apparel from Asia rose by 7% compared to 2000 since 1996, imports of Asian textiles grew by 85%, while imports of finished clothing – almost 60%.

made in china

In 1996, Mexico has shifted to China from a leading provider of textile and light industry in the US. Deliveries of textiles and clothing from that country cover about 20% of the deficit of the United States. In 2002, the trade deficit of light industry was valued at $ 62 Billion
According to the World Trade Organization; in 2002 the US imported textile industry at $ 78.6 billion, becoming the largest importer in the world. Exports amounted to only $ 16.6 billion
The result of ever-increasing imports is closing more than 250 companies since 1997 the hardest hit North and South Carolina – the main pillar of textile industry in the US. Peaked in 2001. When, after September 11, many businesses have lost orders major US carriers.
Since the crisis the total number of people employed in industry fell by almost 600 thousand people. And every year the number hit by the crisis grows.
To regulate relations in the light industry at the present stage in the US there are three pieces of legislation:
1. Multi-Fiber Agreement (MFA). In order to prevent the destruction of their industries, developing countries insisted on the design of the management of international trade in textiles in a separate document. This design or the trade regime has been formally adopted in 1974 and known as the MFA.
The Purpose of MFA – Provide for a Relaxing Trade World of Light Industry. For the past 20 years MFA regulate imports of products of textile and light industry in the United States through the establishment of annual quotas based on the relations between the countries. In 2005. MFA will be replaced; it will be replaced by The Agreement on Textile and Apparel (ATA).
2. African Growth and Opportunity Act. This law will reduce tariffs on US goods, and exclude a number of textile quotas on products exported from Africa as well as promote American investment in African countries. The bill has not yet been passed by Congress.
3. The Agreement on Textile and Apparel (ATA). January 1, 1995 in the Uruguay Round of WTO negotiations, the Agreement on Textile and Light Industry. If the ATA and textiles and clothing should be gradually transferred under GATT discipline and become the subject of the same rights as the goods of other sectors. Countries that have signed this Agreement shall abolish quotas on imports of certain goods from other WTO members. The integration process began in 1995 and completed in late 2005