The forced labour crisis in global textile supply chains has pushed the National Council of Textile Organizations (NCTO) to demand stronger US trade action. The organization has formally submitted recommendations to the Office of the United States Trade Representative (USTR), calling for new tariffs on textile and apparel imports from China and select Southeast Asian countries. The submission forms part of the USTR's ongoing Section 301 investigation into labour practices across international supply chains. For the latest US textile trade policy updates, visit the Info Center on textilezon.com.
NCTO's Case for Stricter Trade Enforcement
NCTO represents manufacturers across the entire American textile supply chain. The organization contends that forced labour in overseas textile production distorts global competition and places US producers at a significant economic disadvantage. In its formal USTR submission, NCTO stated that forced labour "remains prevalent in global textile and apparel supply chains and unfairly disadvantages US textile manufacturers."
The association warned that the investigation's policy outcomes will carry lasting consequences for the sector. Effective enforcement could "potentially double" domestic manufacturing capacity, NCTO noted. An inadequate response, however, would cost jobs and cause "irreparable harm" to the US textile industry.
Section 301 Tariffs and Targeted Exemptions
NCTO's submission calls for additional tariffs on textile and apparel goods sourced from regions with documented forced labour practices. The organization also proposed targeted adjustments to the enforcement mechanism to prevent unintended harm to US manufacturers. These refinements reflect the complexity of global supply chains and the need to protect domestic production inputs.
The organization's core recommendations include:
- Excluding raw cotton from the proposed mechanism to prevent production from relocating outside the US
- Exempting textile machinery and manufacturing inputs unavailable domestically from additional import duties
- Applying new tariffs specifically to imports with verifiable links to forced labour practices
Protecting Regional Trade Access and Job Growth
NCTO stressed that preserving duty-free access under the United States-Mexico-Canada Agreement (USMCA) and the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) is essential. These agreements underpin regional textile supply chains and support North American production. Undermining them through poorly targeted enforcement would weaken the domestic manufacturing base these measures are designed to protect.
NCTO is also collaborating with the American Apparel & Footwear Association, the United States Fashion Industry Association, and the US Industrial and Narrow Fabrics Institute. Together, the coalition backs an alternative incentive programme to strengthen the full textile and apparel value chain. According to the submission, the initiative would "create over 56,000 jobs in the US" by rewarding compliant sourcing from US cotton through to finished apparel.
Frequently Asked Questions
What is NCTO asking the USTR to do?
NCTO is urging the USTR to impose additional Section 301 tariffs on textile and apparel imports linked to forced labour, primarily targeting goods from China and certain Southeast Asian countries.
Why does NCTO want raw cotton excluded from the enforcement mechanism?
Including raw cotton could incentivize manufacturers to relocate production outside the United States. Excluding it protects domestic cotton growers and preserves the broader US textile supply chain.
What is the potential impact on US textile manufacturing?
Effective enforcement could potentially double domestic manufacturing capacity and support tens of thousands of jobs. A weak policy response risks long-term structural damage and irreparable harm to the US textile sector.
The USTR's Section 301 investigation will set a precedent for how the United States addresses forced labour in global sourcing networks. US manufacturers, importers, and procurement professionals must monitor the outcome closely, as it will directly shape import costs, supply chain strategy, and investment decisions across the textile and apparel sector.
