FACT SHEET

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS’
DECISIONS TO INVOKE SAFEGUARDS ON TWO TEXTILE AND APPAREL PRODUCT CATEGORIES AND TO EXTEND THE TIME FOR DETERMINATION ON FOUR TEXTILE AND APPAREL PRODUCT CATEGORIES OF TEXTILE
IMPORTS FROM CHINA

The Committee for the Implementation of Textile Agreements (CITA) today announced affirmative decisions in two textile safeguard cases.

CITA determined that imports of other synthetic filament fabric (category 620) and brassieres and other body-supporting garments (category 349/649) from China are disrupting and threatening to disrupt the U.S. markets for those products.   As a result of these determinations, CITA has requested consultations with the Government of China on these products and has put in place quotas that will limit the growth in imports of the covered products.  

CITA also announced that it is extending until October 1, 2005, the period for making determinations on whether to request consultations with China regarding imports of cotton and man-made fiber sweaters (category 345/645/646), cotton and man-made fiber dressing gowns and robes (category 350/650), men’s and boys’ wool trousers (category 447), and knit fabric (category 222).

Next Steps: CITA has requested consultations with the Government of China on the two product categories with a view to easing or avoiding market disruption and has put in place a quota to limit U.S. imports from China of these two product categories.   The quota levels are 7.5 percent above the amount of imports of these two product categories from China entered during the first 12 months of the most recent 14 months preceding the month in which the request for consultations was made.   The quota levels will be prorated to correspond to the number of days left in the year as of the date of the request for consultations.

Consultations must be held within 30 days of CITA’s request for consultations with the Government of China concerning these two product categories.   The United States will make every effort to reach a mutually satisfactory agreement with the Government of China to ease or avoid market disruption in the U.S. market for these two product categories within 90 days of the request for consultations.   In the event a mutually satisfactory solution cannot be reached by the conclusion of the consultations period, the quotas will remain in place through the end of 2005.

Background:   The six product categories described above are subject to requests for safeguard relief based on the existence of market disruption or threat of market disruption that were filed by the domestic textile industry and its workers between November 8, 2004 and April 6, 2005.   Some of the product categories were subject to separate market disruption and threat-based requests. The public comment periods on the threat-based requests filed in November and December were interrupted by an injunction issued by theU.S. Court of International Trade, but resumed on May 9 after the Court of Appeals for the Federal Circuit stayed the injunction.   The injunction was subsequently overturned by the Federal Circuit in a decision issued on June 28.   The comment periods on the six cases ended between May 17 and June 3.

The Committee’s Procedures state that the Committee will make a determination within 60 calendar days of the close of the public comment period as to whether the United States will request consultations with China.

If the Committee is unable to make a determination within 60 calendar days, it will cause a noticeto be published in the Federal Register that includes the date by which it will make a determination.

The close of the 60-day determination periods for the six cases at issue fell between July 18 and August 2.   With respect to the proceedings concerning other synthetic filament fabric and men’s and boys’ wool trousers, CITA had previously extended the period for making a determination until July 31, 2005.   On August 1, the Committee announced its decision to extend the period for making a determination on these cases in order to consult with our domestic textile and apparel industry and members of Congress about whether to pursue a broader agreement with China on imports of Chinese textile and apparel products.

On August 16-17, 2005, the United States commenced negotiations with China on a broad textile agreement.   These negotiations continued on August 30-31, 2005, and further negotiations will be scheduled in the near future.  

Requestors :   The American Manufacturing Trade Action Coalition, the National Council of Textile Organizations, the National Textile Association, SEAMS, and UNITE HERE filed threat-based requests in November and December 2004 on other synthetic filament fabric, brassieres and other body-supporting garments, men’s and boys’ wool trousers, cotton and man-made fiber dressing gowns and robes, and knit fabric.   (SEAMS was not a party to the request for safeguard action on other synthetic filament fabric and knit fabric.)   The same organizations, except SEAMS, filed requests on April 6, 2005, based on market disruption, on other synthetic filament fabric, brassieres and other body-supporting garments, cotton and man-made fiber dressing gowns and robes, and sweaters .

Data on Product Categories for which CITA Made Affirmative Determinations:

Category 620 Product Description :   The relevant product of Chinese origin is other synthetic filament fabric (primarily synthetic filament fabrics of nylon and polyester, other than lightweight polyester filament fabric), which consists of the following 39 HTSUS subheadings:   5407.10.0090, 5407.20.0000, 5407.30.9000, 5407.41.0030, 5407.41.0060, 5407.42.0030, 5407.42.0060, 5407.43.1000, 5407.43.2030, 5407.43.2060, 5407.44.0030, 5407.44.0060, 5407.51.0060, 5407.52.2060, 5407.53.2060, 5407.54.0060, 5407.61.9915, 5407.61.9935, 5407.61.9955, 5407.61.9975, 5407.69.1060, 5407.69.2060, 5407.69.3000, 5407.69.4060, 5407.69.9060, 5407.71.0015, 5407.71.0060, 5407.72.0015, 5407.72.0060, 5407.73.1000, 5407.73.2015, 5407.73.2060, 5407.74.0015, 5407.74.0060, 5407.91.2010, 5407.92.2010, 5407.93.1500, 5407.93.2010, and 5407.94.2010.  

Import Statistics:

Source:                 Statistics for other synthetic filament fabric imports from the world and China derived from the Office of Textiles and Apparel, Major Shippers Report for HTSUS numbers listed above.

Category 349/349 Product Description:   The relevant product of Chinese origin is brassieres and other body supporting garments, which consists of the following 8 HTSUS subheadings: 6212.10.5010, 6212.10.5020, 6212.10.9010, 6212.10.9020, 6212.20.0010, 6212.20.0020, 6212.30.0010, and 6212.30.0020.

Import Statistics:

Source:                 Statistics for brassieres and other body supporting garments imports from the world and China derived from the Office of Textiles and Apparel, Major Shippers Report for HTSUS numbers listed above.

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