The United States has become an increasingly attractive option for textile manufacturers, the key driver for surge in foreign direct investment is the success of U.S. trade policy in the textile sector. The Yarn-Forward rule has helped the U.S. textile industry become the third largest exporter of textile products in the world. U.S. textile exports have grown dramatically, from $12.7 billion in 2003 to $17.9 billion in 2013, a 40.6% increase over that period.

The Yarn-Forward rule requires that yarn, fabric, and assembly production steps be completed in the FTA region in order to qualify for duty-free preference into the United States. This rule has served as a catalyst for record breaking exports of U.S. yarns and fabrics that are eventually processed into finished apparel and textile home furnishings in FTA partner countries. These goods are then shipped back to the U.S. duty free for purchase by U.S. consumers.

It is due to the benefits of a strong Yarn-Forward rule that the single largest investment announcement, approximately one-quarter of a billion dollars, came from Gildan Activewear Inc., based in Montreal, Canada. They have designed their supply chain in order to most effectively leverage preferential treatment under U.S. trade agreements.

Gildan would be making an additional investment of approximately $250 million over its 2014 and 2015 fiscal years in order to build two new yarn spinning facilities in North Carolina, one in Salisbury and another one in Mocksville. The venture is put down to create approximately 500 new jobs in Davie and Rowan Counties, NC.

Yarn-Forward has made a major contribution to the U.S. economy and workforce. The massive investment surge and the creation of approximately 1,900 much needed manufacturing jobs is a concrete example that sound provisions in trade agreements can make a real difference in the country’s economy.

Since August of 2013, textile companies from India, Mexico, and China have also announced new investment plans in the United States. The U.S. textile sector continues to see a positive trend in foreign direct investment