Order Code RL32895
CRS Report for Congress
Received through the CRS Web
Textile Exports to
Trade Preference Regions
May 2, 2005
Bernard A. Gelb
Specialist in Industry Economics
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

Textile Exports to Trade Preference Regions
Summary
With Congress currently debating approval of a free trade agreement with five
Central American countries and the Dominican Republic (CAFTA-DR), it may be
useful to know how successful existing trade preference programs have been in terms
of spurring U.S. exports of textiles to the designated regions. Congress has eased
trade terms on a variety of products from Andean, Caribbean, and sub-Saharan region
nations — especially on textiles and apparel — in moves to stimulate economic
growth in poorer regions of the world. To provide markets for U.S. manufacturers
of yarn and fabric, however, the trade preference programs for the most part require
U.S.-made yarn and/or fabric as inputs for textile and apparel end-products for them
to qualify for trade preference.
This report examines the dollar value of U.S. yarn, fiber, and fabric exports to
countries covered by U.S. trade preference programs before and after textile trade
preferences went into effect. The trade preference programs covered are the African
Growth and Opportunity Act (AGOA), the Andean Trade Promotion and Drug
Eradication Act (ATPDEA), and the Caribbean Basin Trade Preference Act
(CBTPA) — including any subsequent amendments.
Dominated by trends in exports to CBTPA countries, U.S. exports of fiber, yarn,
and fabric to the three trade preference regions increased steeply in the early 2000s.
Among the above three trade preference regions, CBTPA countries as a group
constitute the largest market by far for U.S. fiber, yarn, and fabric, with ATPDEA
countries second, and AGOA countries third. U.S. domestic exports of fiber, yarn,
and fabric to CBTPA countries, which had been rising at least since the mid-1990s,
increased sharply in 2001 and have risen further since then, although not as rapidly.
U.S. domestic exports of fiber, yarn, and fabric to ATPDEA countries also
increased markedly between 2002 and 2003, but less rapidly than exports to CBTPA
countries, with each of the major categories registering sharp gains. And such
exports rose again in 2004. However, U.S. exports of fiber, yarn, and fabric to
ATPDEA countries for the most part did not re-attain their levels of the late 1990s.
U.S. domestic exports of the items in question to AGOA countries are the lowest by
far among the three trade preference regions covered by this report; have not
reattained their levels of the late 1990s; and have experienced no increase of note in
the 2000s. Such exports actually fell in 2001, the year after AGOA textile trade
preferences became effective.
Cotton or cotton blend intermediate textile items account for about half of U.S.
domestic exports of fiber, yarn, and fabrics to the three trade preference regions
combined. As in the case of overall domestic exports of fiber, yarn and fabric, trends
in exports of cotton fiber, yarn, and fabric to the three regions are dominated by
trends in exports to CBTPA countries. However, in contrast to the case of overall
exports, exports of cotton fiber, yarn, and fabric to two of the three regions after 2000
have exceeded levels of the late 1990s. This report will be updated as warranted.

Contents
Exports With All Types of Fiber Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
CBTPA Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
ATPDEA Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
AGOA Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Exports With Full or Major Cotton Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Appendix:
Two-Digit Harmonized Tariff Schedule Chapters
Covering Fiber, Yarn, and Fabric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
List of Figures
List of Tables
Table 1. U.S. Domestic Exports of Fiber, Yarn, and Fabric to Beneficiary
Countries of the African Growth and Opportunity Act, Andean Trade
Promotion and Drug Eradication Act, and Caribbean Basin Trade
Preference Act, 1996-2004: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Table 2. U.S. Domestic Exports of Fiber, Yarn, and Fabric to Caribbean Basin
Trade Preference Act Countries: Selected Major Categories and Total,
1996-2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Table 3. U.S. Domestic Exports of Fiber and Fabric to Andean Trade Promotion
and Drug Eradication Act Countries: Selected Major Categories and
Total, 1996-2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Table 4. U.S. Domestic Exports of Fiber, Yarn, and Fabric to African Growth
and Opportunity Act Countries Selected Major Categories and Total,
1996-2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 5. U.S. Domestic Exports of Cotton Fiber, Yarns, and Woven Fabrics
to Beneficiary Countries of the African Growth and Opportunity Act,
Andean Trade Promotion and Drug Eradication Act, and Caribbean Basin
Trade Preference Act, 1996-2004: Summary . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 6. U.S. Domestic Exports of Cotton Fiber, Yarn, and Woven Fabric
to Beneficiary Countries of the African Growth and Opportunity Act,
Andean Trade Promotion and Drug Eradication Act, and Caribbean Basin
Trade Preference Act, 1996-2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Textile Exports to Trade Preference Regions
With Congress currently debating approval of a free trade agreement with five
Central American countries and the Dominican Republic (CAFTA-DR), it may be
useful to know how successful existing trade preference programs have been in terms
of spurring U.S. exports of textiles to the designated regions. Congress has eased
trade terms on a variety of products from Andean, Caribbean, and sub-Saharan region
nations, especially on textiles and apparel, in moves to stimulate economic growth
in poorer regions of the world. It is reasonable to expect that the textile and apparel
industries would be among the first to grow rapidly in these regions, given the large
role usually played by textiles and apparel in early industrial development. To
provide markets for U.S. manufacturers of yarn and fabrics, the trade preference
programs for the most part require U.S.-made yarn and/or fabric as inputs for textile
and apparel end-products for them to qualify for trade preference.
This report examines the levels of U.S. yarn, fiber, and fabric exports to
countries covered by U.S. trade preference programs before and after textile trade
preferences went into effect. Specifically, the trade preference programs covered are
the African Growth and Opportunity Act (AGOA), the Andean Trade Promotion and
Drug Eradication Act (ATPDEA), and the Caribbean Basin Trade Preference Act
(CBTPA) — including any subsequent amendments. AGOA textile trade preference
provisions became effective in October 2000. ATPDEA textile trade preference
provisions became effective in late 2002. CBTPA textile trade preference provisions
became effective in October 2000. The nature and the product coverage of trade
preferences differ among the programs. Textile preferences of all three programs
have been liberalized since initial enactment.1
The report first presents and describes trends in the dollar value of U.S.
domestic exports of fiber, yarn, and fabric of all fiber types (cotton, manmade, silk,
etc.) to each of the three trade preference regions from 1996 through 2004. This is
followed by a focus on exports of cotton fiber, yarn, and fabric only. Cotton or
cotton blend intermediate textile items account for about half of U.S. domestic
exports to the three trade preference regions combined. The data are organized
according to Harmonized Tariff Schedule (HTS) chapters described in the appendix
to this report.
1 Backgrounds, legislative histories, and details of the programs can be found in the
following CRS Reports among others: CRS Report RS21772, AGOA III: Amendment to the
African Growth and Opportunity Act
; CRS Report RL31772, U.S. Trade and Investment
Relationship with Sub-Saharan Africa: The African Growth and Opportunity Act and
Beyond
; CRS Report RL32770, Andean-U.S. Free Trade Agreement Negotiations; CRS
Report RL32160, Caribbean Region: Issues in U.S. Relations; CRS Issue Brief IB95050,
Caribbean Basin Interim Trade Program: CBI/NAFTA Parity.

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Exports With All Types of Fiber Content
Among the three trade preference regions covered by this report, CBTPA
countries as a group constitute the largest market by far for U.S. fiber, yarn, and
fabric, with ATPDEA countries second, and AGOA countries third (Table 1).
Consequently, trends in exports to the three regions combined are dominated by
trends in exports to CBTPA countries. Also, before presenting recent developments,
it may be useful to note that in the cases of two of the three trade preference regions
(AGOA and ATPDEA), U.S. exports of fiber, yarn, and fabric were higher in the late
1990s than they have become — at least so far — since the trade preferences
applicable to textiles were liberalized in the early 2000s.
Table 1. U.S. Domestic Exports of Fiber, Yarn, and Fabric to
Beneficiary Countries of the African Growth and Opportunity
Act, Andean Trade Promotion and Drug Eradication Act, and
Caribbean Basin Trade Preference Act, 1996-2004: Summary
(millions of dollars)
Year
AGOA
ATPDEA
CBTPA
Total
1996
74.6
279.2
658.0
1,011.8
1997
63.0
380.0
771.7
1,214.7
1998
54.4
346.5
851.8
1,252.7
1999
54.6
211.0
672.5
938.1
2000
53.8
280.7
931.2
1,265.7
2001
48.4
241.3
1,676.8
1,966.5
2002
44.3
218.5
2,275.7
2,538.5
2003
45.8
287.2
2,462.3
2,795.3
2004
45.9
348.4
2,823.4
3,217.7
Note: Data are for domestic exports of Harmonized Tariff Schedule Chapters 50 through 60.
Source: U.S. International Trade Commission (ITC), Trade Database, compiled from tariff
and trade data from the Department of Commerce, Department of the Treasury, and the ITC.
CBTPA Countries
U.S. domestic exports of fiber, yarn, and fabric to CBTPA countries, which had
been rising at least since the mid-1990s, increased sharply in 2001 and have risen
further since then, although not as rapidly. Such exports jumped 80% between 2000
and 2001, and rose 68% between 2001 and 2004.
A roughly similar pattern holds for most of the major HTS fiber, yarn, and fabric
categories (Table 2) exported to CBTPA countries, with cotton fiber and cotton
woven fabric and knitted and crocheted fabrics recording the steepest gains. In 2004,
these two categories combined accounted for two thirds of U.S. fiber, yarn, and fabric

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exports to CBTPA countries.2 Exports of special woven, tufted, and other products
in HTS Chapter 58 doubled between 2000 and 2002, but have since declined.
Table 2. U.S. Domestic Exports of Fiber, Yarn, and Fabric to
Caribbean Basin Trade Preference Act Countries: Selected
Major Categories and Total, 1996-2004
(millions of dollars)
Manmade
Manmade
Special Woven,
Knitted or
Year
Cottona
Filamentsb
Staplec
Tufted, Etc.e
Crocheted Fabricse
TOTALf
1996
250.9
57.2
56.6
84.2
128.0
658.0
1997
276.8
78.6
62.0
120.9
136.1
771.7
1998
351.3
95.1
68.0
126.8
98.9
851.8
1999
181.4
78.0
62.5
140.4
90.6
672.5
2000
295.3
117.9
71.7
191.8
104.0
931.2
2001
607.5
139.2
176.4
337.7
270.0
1,676.8
2002
779.2
148.5
246.8
409.2
525.2
2,275.7
2003
820.1
175.7
292.4
220.4
799.4
2,462.3
2004
1,083.3
168.1
287.2
256.4
863.4
2,823.4
Note: Data are for domestic exports. All categories excepted “Knitted and Crocheted
Fabrics” include both fiber and fabric.
a Harmonized Tariff Schedule Chapter 52. Excludes knitted and crocheted cotton fabric.
b HTS Chapter 54.
c HTS Chapters 55.
d HTS Chapter 58.
e HTS Chapter 60.
f Includes HTS Chapters not shown separately.
Source: U.S. International Trade Commission (ITC), Trade Database, compiled from tariff
and trade data from the Department of Commerce, Department of the Treasury, and the ITC.
ATPDEA Countries
Between 2002 and 2003, total U.S. domestic exports of fiber, yarn, and fabric
to ATPDEA countries increased markedly, albeit less rapidly than exports to CBTPA
countries, with each of the major categories registering sharp gains (Table 3). And
such exports rose again in 2004. Exports of cotton fiber, yarn, and woven fabrics
rose 70% over the two years; manmade materials (two categories combined) rose
2 HTS chapters are organized partly by type of fiber and partly by the nature of the
intermediate product. For example, Chapters 51 and 52 cover, respectively, wool fiber,
yarn, and woven fabric and cotton fiber, yarn, and woven fabric. Chapter 56 covers
wadding, felt and nonwovens, twine, cordage, etc. Chapter 60 covers knitted and crocheted
fabrics regardless of fiber content. See the appendix to this report.

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58%; and knitted and crocheted fabrics rose 132%. However, as stated earlier, U.S.
exports of fiber, yarn, and fabrics to ATPDEA countries for the most part did not re-
attain their levels of the late 1990s.
Table 3. U.S. Domestic Exports of Fiber and Fabric to Andean
Trade Promotion and Drug Eradication Act Countries: Selected
Major Categories and Total, 1996-2004
(millions of dollars)
Manmade
Manmade Impregnated,
Knitted or
Year Cottona Filamentsb
Staplec
Coated, Etc.d
Crocheted
TOTALf
Fabricse
1996
98.0
48.5
45.7
34.5
11.9
279.2
1997
169.8
52.2
48.5
43.9
12.4
380.0
1998
161.0
46.0
38.4
35.5
10.5
346.5
1999
65.5
37.7
34.8
25.0
11.1
211.0
2000
122.5
42.8
39.2
25.4
8.8
280.7
2001
123.3
24.3
27.6
16.9
6.1
241.3
2002
117.9
24.8
27.7
12.6
3.4
218.5
2003
174.2
35.0
22.7
12.8
6.9
287.2
2004
200.5
45.7
37.1
19.2
7.9
348.4
Notes: Data are for domestic exports. All categories except “Knitted and Crocheted
Fabrics” include fiber as well as fabric.
a Harmonized Tariff Schedule (HTS) Chapter 52. Excludes knitted and crocheted cotton
fabrics.
b HTS Chapter 54.
c HTS Chapter 55.
d HTS Chapter 59.
e HTS Chapter 60.
f Includes HTS Chapters not shown separately.
Source: U.S. International Trade Commission (ITC), Trade Database, compiled from tariff
and trade data from the Department of Commerce, Department of the Treasury, and the ITC.
AGOA Countries
Total U.S. domestic exports of fiber, yarn, and fabric to AGOA countries are the
lowest by far among the three trade preference regions covered by this report; have
not reached even $50 million per year since 2000; have not re-attained their levels
of the late 1990s; and have experienced no increase of note in the 2000s. Such
exports actually fell in 2001, the year after AGOA textile trade preferences became
effective. Exports of manmade fiber, yarn, and fabrics to AGOA countries fell 40%
between 2000 and 2004 — from 37% of the total in 2000 to 26% in 2004. Exports
of cotton fiber, yarn, and fabrics have increased steeply since 2000, but that year’s
level was the point of the 1996-2000 period.

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Table 4. U.S. Domestic Exports of Fiber, Yarn, and Fabric to
African Growth and Opportunity Act Countries Selected Major
Categories and Total, 1996-2004
(millions of dollars)
Manmade
Manmade
Wadding,
Knitted or
Year
Cottona
Filamentsb
Staplec
Felt, Etc.d
Crocheted Fabricse
TOTALf
1996
14.9
9.6
21.4
3.5
3.9
74.6
1997
10.9
11.2
11.6
3.1
5.2
63.0
1998
10.9
9.4
6.6
3.6
3.9
54.4
1999
6.5
12.2
5.6
4.1
5.5
54.6
2000
4.7
13.0
6.7
2.4
5.8
53.8
2001
6.1
12.4
3.4
4.0
8.6
48.4
2002
4.9
11.1
3.5
6.5
2.2
44.3
2003
8.9
9.7
4.2
6.1
1.6
45.8
2004
8.2
7.6
4.3
6.4
1.2
45.9
Note: Data are for domestic exports. All categories excepted “Knitted and Crocheted
Fabrics” include both fiber and fabrics.
a Harmonized Tariff Schedule Chapter 52. Excludes knitted and crocheted cotton fabrics.
b HTS Chapter 54.
c HTS Chapter 55.
d HTS Chapter 56.
e HTS Chapter 60.
f Includes HTS Chapters not shown separately.
Source: U.S. International Trade Commission (ITC), Trade Database, compiled from tariff
and trade data from the Department of Commerce, Department of the Treasury, and the ITC.
Exports With Full or Major Cotton Content
Cotton or cotton blend intermediate textile items account for about half of U.S.
domestic exports of fiber, yarn, and fabrics to the three trade preference regions
combined. (Data for yarns and woven fabrics include blends with other fibers, with
cotton as the dominant component by weight.) As in the case of overall domestic
exports of fiber, yarn and fabric, trends in exports of cotton fiber, yarn, and fabric to
the three regions are dominated by trends in exports to CBTPA countries (Table 5).
However, in contrast to the case of overall exports, exports of cotton fiber, yarn, and
fabrics to two of the three regions after 2000 have exceeded levels of the late 1990s.

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Table 5. U.S. Domestic Exports of Cotton Fiber, Yarns, and
Woven Fabrics to Beneficiary Countries of the African Growth
and Opportunity Act, Andean Trade Promotion and Drug
Eradication Act, and Caribbean Basin Trade Preference Act,
1996-2004: Summary
(millions of dollars)
Year
AGOA
ATPDEA
CBTPA
Total
Countries
Countries
Countries
1996
14.9
98.8
314.4
428.1
1997
11.0
169.9
325.5
506.4
1998
9.9
161.4
370.4
541.7
1999
6.7
65.9
198.1
270.7
2000
4.7
122.8
332.0
459.5
2001
6.1
123.6
711.2
840.9
2002
5.0
119.5
953.2
1,077.7
2003
9.0
177.9
1,151.7
1,338.6
2004
8.2
201.8
1,390.3
1,600.3
Source: Table 6.
U.S. domestic exports of the categories cotton fiber, yarn, and woven fabrics
and cotton knitted or crocheted fabrics to CBTPA countries increased steeply in
2001, and have increased further since then (Table 6). The former more than
doubled and the latter nearly tripled between 2000 and 2001. Between 2001 and
2004, the former rose 78% and the latter nearly tripled again. The former accounted
for more than three quarters of U.S. exports of cotton fiber, yarn, and fabric to
CBTPA countries in 2004. Detailed data not shown in Table 6 indicate a large shift
in exports to CBTPA countries from undyed to dyed knitted or crocheted fabrics in
2002, probably reflecting newly enacted statutory requirements.
U.S. exports to ATPDEA countries of cotton knitted and crocheted fabrics
increased sharply in 2002, while exports of cotton fiber, yarn, and woven fabrics to
the ATPDEA region did so in 2003. But the apparent volatility of this export
category series makes it unclear if the high level in 2004 is part of a rising trend.
Other detailed data not included in Table 6 indicate that, among exports of knitted
or crocheted fabrics to ATPDEA countries, there was a shift to pile fabrics in 2002,
possibly responding to the inclusion of (Andean) handloomed, handmade, and
folklore products as eligible for duty free entry into the United States, and possibly
is reflected in a much higher level of U.S. imports of carpets and rugs from Andean
countries in 2004.
U.S. exports of cotton fiber, yarn, and fabrics to the AGOA region are almost
exclusively in the form of fiber, yarn, and woven fabrics. The level of exports of this
category in 2003 and 2004 is significantly higher than in 2000 through 2002,
suggesting a response to the liberalization of trade preferences to that region.

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However, here too it is unclear if the increased level in 2003 and 2004 is part of a
rising trend, given the high level of exports of fiber, yarn and woven fabrics to
AGOA countries in 1996 relative to later years.

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Table 6. U.S. Domestic Exports of Cotton Fiber, Yarn, and Woven Fabric to Beneficiary Countries of the African
Growth and Opportunity Act, Andean Trade Promotion and Drug Eradication Act, and Caribbean Basin Trade
Preference Act, 1996-2004
(thousands of dollars)
AGOA Countries
ATPDEA Countries
CBTPA Countries
Year
Fiber, Yarns, &
Knitted or
Fiber, Yarns, &
Knitted or
Fiber, Yarns, &
Knitted or
Woven Fabricsa
Crocheted Fabrics
Woven Fabricsa
Crocheted Fabrics
Woven Fabricsa
Crocheted Fabrics
1996
14,881
54
97,965
829
252,244
62,176
1997
10,943
9
169,759
165
278,363
47,144
1998
9,864
16
161,081
275
353,351
17,044
1999
6,450
252
65,456
459
182,614
15,459
2000
4,690
30
122,496
353
296,474
35,516
2001
6,086
11
123,197
437
609,140
102,086
2002
4,920
62
117,883
1,653
780,151
173,057
2003
8,926
30
174,190
3,687
821,295
330,443
2004
8,182
14
200,482
1,291
1,084,089
306,184
Note: Categories shown are totals of selected six-digit HTS subcategories.
a Includes blended yarns and fabrics with cotton as the dominant component by weight.
Source: Harmonized Tariff Schedule data from the U.S. International Trade Commission (ITC), Trade Database, compiled from tariff and trade data from the
Department of Commerce, Department of the Treasury, and the ITC.

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Appendix:
Two-Digit Harmonized Tariff Schedule Chapters
Covering Fiber, Yarn, and Fabric
50
Silk, including yarns and woven fabrics thereof
51
Wool and fine or coarse animal hair, including yarns and woven fabric thereof;
horsehair yarn and woven fabric
52
Cotton, including yarns and woven fabrics thereof
53
Vegetable textile fibers nesoi*; yarns and woven fabrics of vegetable textile
fibers nesoi* and paper
54
Manmade filaments, including yarns and woven fabrics thereof
55
Manmade staple fibers, including yarns and woven fabrics thereof
56
Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables
and articles thereof
57
Carpets and other textile floor coverings
58
Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings;
embroidery
59
Impregnated, coated, covered or laminated textile fabrics; textile articles suitable
for industrial use
60
Knitted or crocheted fabrics
* – Not elsewhere specified or indicated.