After an arduous negotiating process between the three North American leaders, the United States-Mexico-Canada Agreement (USMCA) was signed into effect. Although the textile industry won’t see any new regulations until around 2020, The National Council of Textile Organizations (NCTO) endorses the NAFTA replacement deal.
Textile Industry Better Off Under USMCA
NCTO Chairman Marty Moran, stated, “On behalf of the U.S. textile industry, thank you to President Trump, Ambassador Lighthizer and the entire U.S. negotiating team for your hard work in getting USMCA done.”
The textile trade between the United States, Canada, and Mexico rang in at $11.8 billion in 2017. The future fate of that hung in the balance as the nations began stonewalling over aluminum tariffs and access to Canada’s dairy market.
Now, credit is due to USMCA for creating the most provisions regarding the textile trade. NAFTA did not have a separate chapter in regard to textiles, according to the NCTO. The Global Apparel Forum also praised the agreement for its stronger regulations on rules of origin. They believe this will further strengthen the domestic textile and apparel production, all while increasing ties between the North American nations. The NCTO stated that they would continue to lobby to ensure the ratification of the USMCA by 2020.