Cotton Pleased with Trade Bill

April 17, 2000

The National Cotton Council says a House-Senate conference committee has agreed on a bill on Caribbean and Africa trade preferences that will increase U.S. cotton use. It will "help the U.S. Textile industry maintain its competitiveness," says NCC President Robert E. McLendon.

McLendon said the compromise was worked out by members and staff in a lengthy meeting Thursday night. It would grant trade preferences for apparel articles produced in the Caribbean and in Africa and imported into the United States.

The Caribbean Basin parity proposal grants duty and quota free access for apparel made in Caribbean countries from U.S. fabric made from U.S. yarn, a limited amount of apparel made from fabrics knitted in the Caribbean from U.S. yarn and a limited amount of a specific category of outerwear T-shirts. The limits on the regional knits reportedly will increase by 10% a year.

African trade preferences are not limited to apparel made from U.S. textile components. The Africa portion reportedly grants duty and quota free access for a limited amount of apparel made in African countries from African textile components. Preferential access is said to be limited at 1.5% of total U.S. apparel imports increasing to 3% of total U.S. apparel imports over eight years.

Least developed countries included in the Africa group will be allowed to source textile components from areas outside Africa for four years.