US Apparel and Textile Groups Unite Behind New Trade Incentive Programme
Leading US textile manufacturers, apparel brands, and retail industry associations have jointly called on the US government to introduce a new textile and apparel trade incentive programme aimed at strengthening domestic manufacturing, expanding exports, and building resilient supply chains across the Western Hemisphere.
The proposal was submitted to the Office of the United States Trade Representative (USTR) by the National Council of Textile Organizations (NCTO), the American Apparel & Footwear Association (AAFA), the United States Fashion Industry Association (USFIA), and the US Industrial and Narrow Fabrics Institute (USINFI).
The collaboration marks the first time these organisations—often known for differing positions on trade policy—have united behind a single trade initiative.
According to the joint proposal, the incentive programme would allow brands and retailers to earn tariff credits by purchasing US-made textiles and approved apparel products from free trade agreement (FTA) partners in the Western Hemisphere. These credits could then be used to offset potential Section 301 tariffs on imports from eligible countries.
The organisations believe the programme could significantly strengthen regional textile and apparel supply chains while encouraging companies to diversify their sourcing strategies.
Industry groups estimate that the initiative could double US textile exports to the Western Hemisphere, create more than 56,000 new jobs, generate billions of dollars in domestic investment, and support the broader supply chain, including the US cotton sector.
The proposal was submitted in response to a mechanism advanced by the USTR as part of its ongoing Section 301 investigations into forced labour practices in global supply chains.
In their joint submission, the organisations stated that the programme would help revive US textile manufacturing, reopen idle factories, and encourage new investments while creating additional sourcing opportunities for apparel brands and retailers.
They urged the USTR to consider incorporating the proposed incentive programme into any final remedies arising from the ongoing Section 301 investigations, describing it as a balanced approach that supports manufacturers, brands, retailers, and regional trade partners alike.