California Apparel News

In late December, Matt Priest was appointed to a U.S. Department of Commerce job that makes him one of the government’s point men on textiles and apparel. In his new job as deputy assistant secretary for textiles and apparel, Priest administers U.S. textile quota agreements, helps fashion trade policy, compiles industry data and promotes U.S. trade events for a host of textile and apparel goods. He is also the head of CITA (the Committee for the Implementation of Textile Agreements), an interagency committee that was instrumental in deciding what quota limitations would be put on Chinese-made garments and fabric.

He replaces Jim Leonard, a Burlington Industries veteran who worked for the government from 2002 until he stepped down in September 2006. Prior to his appointment, Priest was a senior advisor to Commerce’s Assistant Secretary for Import Administration David Spooner.

Priest recently spent time with California Apparel News Senior Editor Deborah Belgum, talking about his new job and his goals.

What kind of experience and apparel and textile background do you bring to the job?

The majority of my textile and trade background comes from my work on Capitol Hill. I worked for a member of Congress (Sue Myrick, R–N.C.) whose district had a lot of textile issues. As her legislative director, I was able to gain experience that would benefit me in this role. I was on the Hill when CAFTA moved through. That debate really helped prepare me for the role I am in right now. I was born in North Carolina, which has a lot of textile and apparel. Even if you have never worked in a mill or had the experience Jim had doesn’t mean you are not cognizant of the effect the industry has on your state.

What are your goals and priorities as head of CITA and as the deputy assistant secretary for textiles and apparel?

My first goal is to maintain an open-door policy and allow folks to come and sit down with me and talk about an issue they are facing. I had already developed a lot of the relationships that are important to this role. Before this, I worked in the front office for Assistant Secretary of Commerce David Spooner, who was the chief textile negotiator at USTR (U.S. Trade Representative).

Another goal is to advance the administration’s trade goal and open new markets and build on the success that many companies have created for themselves. We want to be an ally in world trade for folks, not an impediment, and make sure we balance that line, provide export opportunities and help negotiate more free-trade agreements.

When do you think CAFTA-DR will be fully up and running?

It is up and running with four countries— Guatemala, Nicaragua, Honduras and El Salvador. We expect the Dominican Republic will implement [the agreement] soon. I can’t say exactly when that will be, but our expectation is soon. Costa Rica is a little different story. They haven’t ratified the agreement internally with their legislature. We hope that will happen some time this year, and we look forward to them having the agreement running soon.

How will CAFTA-DR benefit the apparel and textile industries in the United States?

What we are doing with this FTA [freetrade agreement] is building on what these companies have been doing. A lot of people domestically are already doing business in Central America, and this provides a mechanism with which they can enhance this relationship and create jobs at home. I think behind NAFTA [the North American Free Trade Agreement], Central America is the second-most exported-to area in terms of U.S. textiles. It seems to be a mechanism we can use to enhance those relationships that already exist and consolidate this hemisphere.

Have the pocketing and lining issues been completely resolved for the CAFTA countries where fabric for those items cannot come from outside the CAFTA region?

We expect the implementation of the pocketing and lining issue to take effect this summer or fall. There has been a delay because we had to amend the original agreement, which has to be approved by our Congress and the six Central American legislatures as well. There are a few hurdles internally that have to be passed, since it is actually changing the agreement. It takes some time to get those changes implemented.

Is the government still working on a marker system for textile products that will be used in apparel production in CAFTA-DR to make sure raw materials are coming from the signatory countries? If so, when will this come on line?

Commerce provided a grant of $500,000 to North Carolina State University and Oak Ridge Laboratory. This was to continue the work they have done. We are not the technical experts, but we facilitate the funding. I can’t speculate at this point when that system will be implemented. It is our expectation the grantee will deliver a technology package later this year.

After quotas expire on 34 apparel and textile categories made in China, will more safeguard measures or anti-dumping petitions be implemented?

I am in no place to speculate what will happen after that expires. When it is over, it is our expectation the [safeguard] agreement will go away. CITA will not be the authority to self-initiate. That is an Import Administration–wide program. CITA has no authority to petition. But my other role [as deputy assistant secretary of Commerce for textiles and apparel] will have a role in this.

When does President Bush’s power to fast-track trade agreements end, and will it be extended?

It ends June 30, 2007. It is important that it is extended, but above and beyond that, I can’t speculate what Congress thinks. Obviously, we think it is important to continue our trade agenda. The one thing the apparel and textile industry has done is have a voice here in Washington.

With a number of free-trade agreements in the works, what can U.S. apparel and textile companies do to compete or increase their business?

We would encourage those companies to go to our Web site, www.buyusa.gov. My staff is happy about giving any advice on exporting or on any of the textile shows we sponsor around the world or help people familiarize themselves with the terms of the free-trade agreements. It behooves folks who want to grow their business to look for opportunities to export.