Free Trade……What Kind of Yarn Are We Spinning?

2002 Beltwide Cotton ConferencesHyatt Regency

Atlanta, GAJanuary 10, 2002

Cotton Consumptionon the Cotton Spinning System

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

10.5

11.0

Jan-9

9Feb-9

9M

ar-

99

Apr-

99

May-9

9Ju

n-9

9Ju

l-99

Aug-9

9Sep-9

9O

ct-9

9N

ov-9

9D

ec-

99

Jan-0

0Feb-0

0M

ar-

00

Apr-

00

May-0

0Ju

n-0

0Ju

l-00

Aug-0

0Sep-0

0O

ct-0

0N

ov-0

0D

ec-

00

Jan-0

1Feb-0

1M

ar-

01

Apr-

01

May-0

1Ju

n-0

1Ju

l-01

Aug-0

1Sep-0

1O

ct-0

1N

ov-0

1

Millions of 480-lb. Bales

Source: Cotton, Inc.

Cotton Clothing Imports

0

2

4

6

8

10

12

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Million 480-lb. bale equivalents

Source: USDA

U.S. Textile Productivity Ten years ago, the textile industry

shipped $39.40 worth of product for every hour an employee worked.

Last year, the comparable figure was $54.20.

A Productivity Gain of 38%

Source: KSA

Asian Currencies Down 40% Since Asian Financial Crisis

$0.20

$0.50

$0.80

$1.10Ja

nuary

'96

June '9

6

January

'97

June '9

7

January

'98

June '9

8

January

'99

June '9

9

January

'00

June-0

0

January

'01

June '0

1

$1.00

$0.60

Source: KSA

Asian Textile Product Imports

From 1996-2000, the average price of Asian yarn imported into the U.S. fell 30% - from $3.67/kg to $2.56/kg, and

The average price of Asian fabric fell 26% - from $1.20/sq. meter to $.81/sq. meter.

Source: KSA

Imports Control 90% of U.S. Apparel Market

Apparel Imports

19 billion sme

U.S. Production

2 billion sme

Source: KSA

Increase in U.S. Imports of Textiles and Apparel

India 84% Pakistan 196% Bangladesh 85% Thailand 99% Indonesia 100% Philippines 74%

Under the WTO (1994-2000)

Source: KSA

Dan Was Up-and-Coming

He never thought he’d be down-and-out.

Then his company shut down and moved to China. Dan was forced to look for a job.