Specialty Fabrics Review July 2021 - 47

from a government contracts specialist
can mean the difference between sales
lost or won, and it can help companies
avoid the many traps for the unwary
that government contracting rules can
sometimes present.
At the same time, companies should
consider engaging with policy makers
to make sure their views are heard. As
they formulate the new rules of the
road, policy makers will benefit from
this feedback to help ensure that new
rules achieve their intended objectives.
Supply chain security-
and scrutiny
U.S. regulators are increasingly
focused on enforcing trade rules
that restrict imports due to human
rights, national security and other
concerns. New U.S. Department of
Commerce rules on information and
communications technologies and
services went into effect March 22,
potentially requiring new licenses to
import technology, such as advanced
wearable products from China, which
are considered sensitive from a U.S.
national security perspective.
At this writing, new legislation
was under consideration in Congress
to further restrict new investments
overseas that involve the transfer or
sharing of sensitive technology. Given
these developments, it has never been
more important for companies to
know not only direct suppliers, but
their suppliers' suppliers, investors
and business partners.
Export controls
This year is also unlikely to see any
slowdown in new U.S. export control
and enforcement. Many technologies
used or produced by this industry-
including advanced fibers, sophisticated
production equipment, fabrics
for extreme environments and military
applications, and advanced composites,
among others-have long been subject
to export licensing requirements.
Changes to U.S. export control
laws that began last year have further
restricted the export or transfer of these
technologies, especially to customers
in China, Hong Kong, Russia and
Venezuela. In many cases, products
that could once be exported freely to
these countries now require a license,
particularly to major companies in
China and Russia that the U.S. has
designated as " military end users " or
has listed on the U.S. " Entity List. "
Broad bipartisan support for these
initiatives means there is unlikely to
be any significant rollback or change
of course this year. Companies in the
advanced textile industry that export
from the U.S., or that utilize U.S.
technologies in their products and
R&D, should closely monitor these
changing requirements and invest in
compliance-including close scrutiny
of their customers and supply chains.
Trade agreements
We are unlikely to see significant
new trade agreements before the end
of the year. Close to home, the U.S.,
Canada and Mexico continue the hard
work of implementing the United
States-Canada-Mexico Agreement
(USMCA), the successor to the North
American Free Trade Agreement
(NAFTA). Among the issues that may
affect the advanced textiles industry
under USMCA are changes to rules of
origin for duty preferences and new
environmental and labor chapters.
At the beginning of March, the
U.S., European Union (EU) and U.K.
announced they were suspending
tariffs imposed in response to the
ongoing dispute over subsidies
for civil aircraft production. This
announcement may signal a renewed
www.SpecialtyFabricsReview.com 47
It has never been
more important for
companies to know not
only direct suppliers,
but their suppliers'
suppliers, investors
and business partners.
http://www.SpecialtyFabricsReview.com
Specialty Fabrics Review July 2021

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