DANVILLE, Va. — Textile Caucus member Rep. L.F. Payne (D., Va.), went looking for votes at Dan River Inc. during a campaign stop last week and was reminded that there is still much the domestic textile industry wants out of the 103rd Congress.
In a meeting with Dan River Inc. chief executive officer and chairman Joseph L. Lanier Jr. at the company’s headquarters here, Payne was asked to do two things: continue efforts to open foreign markets to U.S. textile exports and advance a proposed rule-of-origin change for apparel in the Congressional draft of the GATT implementing bill.
“India has just stonewalled us,” Lanier complained, referring to U.S. efforts to open the potentially profitable market. “It’s only fair for them to open their markets to us. The U.S. should not be the dumping ground for the rest of the world’s products.”
On the rule-of-origin change, Lanier echoed others in the textile industry saying it is needed to curb mounting Chinese exports through other countries. The proposal would specify that countries where apparel is sewn would be the designated country of origin. Current law states that country of origin is determined by where an item is cut. The proposal is strongly opposed by importers and retailers, who argue it will seriously disrupt sourcing and raise the cost of imports.
A board member of the American Textile Manufacturers Institute, Lanier is typical of many in the industry in opposing the GATT Uruguay Round on the grounds that the Multi-Fiber Arrangement is being phased out too quickly and so opens the U.S. market rapidly to imports without opening foreign markets to U.S. exports.
Also, as others have in the industry, he was eager to praise the North American Free Trade Agreement, which took effect at the beginning of this year. He thanked Payne for supporting the pact last year, but noted that implementation has not been without hitches since there have been problems with Mexico’s interpretation of some labeling and packaging rules, as well as border delays.
As the domestic industry’s sentinel on the House Ways and Means Committee, Payne has been steadfast in his efforts for the industry, which is one of the biggest employers in his southwest Virginia district. A member of the House since 1988, Payne is 49 years old. He is facing a challenge this year from George Landrith, a 33-year-old conservative Republican who has lashed out at Payne because of his pro-NAFTA vote and for backing a health care plan that included a hike in the tobacco tax.
Related Articles
You May Also Like
In a telephone interview, Landrith said he was skeptical of the complexities of NAFTA.
“I’m suspicious of a bill that is 1,500 pages long that deals with free trade. We can deal with free trade in a paragraph or two,” he said. On GATT, Landrith said he had similar concerns and added that he especially feared that it would turn over U.S. trade policy to the World Trade Organization.
Payne so far has the edge in political fund-raising. According to Federal Election Commission reports through the end of June, Payne had collected $423,000 in his campaign fund. Landrith, on the other hand, had collected almost $100,000.
The textile industry has opened its coffers for Payne, and the FEC reports show his primary and general election contributions include $4,500 from ATMI, $500 from the American Yarn Spinners Association, $4,000 from Burlington Industries political action committee, $2,000 from Springs Industries pac and $1,000 from the Hoechst Celanese pac. Landrith has received no money so far from the textile industry, FEC reports show.
Dan River, one of the area’s biggest employers, has almost 5,000 employees in Payne’s district. The fifth Congressional district is home to numerous textile and apparel plants, including Sara Lee Knit Products and Burlington Men’s Division, as well as Dan River, and during the Congressional break, Payne campaigned heavily, discussing the pending GATT Uruguay Round, among other things.
The district has suffered some job loss recently in the textile industry. Sara Lee in Martinsville announced earlier this summer it would close two apparel plants along with a distribution center, while reducing shifts at a pair of textile plants from four to two. Dan River has suffered job losses of some 750 in recent years, but has just announced it plans construction in Danville of a 125,000-square-foot $8 million plant that will create 300 new jobs.