Effects of Foreign Manufacturing

Once again the Los Angeles Times (“U.S. Textile Policy Is No Bargain,” Editorials, Aug. 6) mounts the pulpit for a ritual bashing of the U.S. textile industry for doing nothing more than trying to stay in business and keep 2 million Americans employed.

The study by William Cline that you cite is being flaunted by importing interests to protect their big mark-ups and heavy market penetration, which have little to do with keeping down consumer prices. This study is seriously flawed because it tells only part of the story. A careful analysis by some leading economists who looked at it objectively shows that Cline overstates the cost of textile quotas to the consumer, ignores the effect of slowed import growth on job creation for the economy as a whole and understates the damage that rapid import growth will cause for the U.S. apparel industry.

Studies that analyze the textile imports bill pending in Congress show that its overall impact on the economy would be to create a $1-billion economic benefit and 100,000 new jobs.

Those who benefit from imports of clothing and textiles are retailers, who enjoyed profits of $2.5 billion in the fourth quarter of 1989, and foreign manufacturers and foreign governments.

Imports do not mean lower prices for clothes for consumers. Just browse through any clothing catalogue. Look at the items that say “Imported” and those “Made In U.S.A.” Then notice that the prices and the products are the same.

Imports are steadily overwhelming the U.S. textile and apparel market. Since 1980, 400,000 jobs have been lost. Textile and apparel employment in March was at its lowest level in a half century. The U.S. textile industry is the most modern and productive in the world. In spite of this, foreign manufacturers have advantages that we cannot overcome by continued investment. They are subsidized by their governments, pay slave wages, often employ children working long shifts, ignore safety practices, pollute the environment and protect their own markets from import competition.

Imports now have 60% of the U.S. apparel market. If that trend continues, imports will soon overwhelm the American market. But a more chilling prospect has to do with national defense. If foreigners supply the U.S. military, what happens in the event of mobilization, such as we have right now in the Middle East?

The issue of controlling textile and apparel imports has been around a long time. The textile bill is an idea whose time has come.

DONALD R. HUGHES

President, American Textile

Manufacturers Institute

Washington, D.C.