NCTO Argues for Section 301 Tariffs, Yarn-Forward Rules to Stay

The National Council of Textile Organizations is arguing that the yarn-forward rule for the Dominican Republic-Central America Free Trade Agreement must be retained, because it is driving what it calls "massive investment" in the countries in Central America. The letter it sent to Vice President Kamala Harris on May 31 is timed to her attendance at the Summit of the Americas, and recognizes her role to try to mitigate the poverty and corruption that leads Central Americans to migrate to the U.S. without visas.

The letter also said that 81% of U.S. spun yarn exports are purchased in the countries covered by the CAFTA-DR trade deal. They also said that apparel from China has to continue to face elevated tariffs under Section 301, because that is driving more production in Central America.