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

1. Free Trade……What Kind of Yarn Are We Spinning? 2002 Beltwide Cotton Conferences Hyatt Regency Atlanta, GA January 10, 2002

2. Cotton Consumptionon the Cotton Spinning System Millions of 480-lb. Bales Source: Cotton, Inc.

3. Cotton Clothing Imports Million 480-lb. bale equivalents Source: USDA

4. 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

5. Asian Currencies Down 40% Since Asian Financial Crisis $1.00 $0.60 Source: KSA

6. 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

7. Imports Control 90% of U.S. Apparel Market U.S. Production 2 billion sme Apparel Imports 19 billion sme Source: KSA

8. Increase in U.S. Imports of Textiles and Apparel Under the WTO (1994-2000) • India 84% • Pakistan 196% • Bangladesh 85% • Thailand 99% • Indonesia 100% • Philippines 74% Source: KSA

9. 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.