US textile industry & labor union files to reapply 9 current safeguards
16 Sep '05
3 min read
Citing continuing Chinese government intransigence on bilateral consultations and an ongoing flood of Chinese textile and apparel imports, US textile industry and labor union officials announced that they had filed to reapply nine (9) current safeguards covering sixteen (16) product categories through the end of 2006 on September 14. All nine safeguards are scheduled to expire at the end of this year.
Over the last seven months, China has mounted the biggest export surge in history. US imports from China in the apparel safeguard categories grew by 850 million garments, an average increase of 627 percent. According to UN trade databases, Chinese prices for these and other major apparel items are on average 58 percent below the prices other countries charge[1].
The Chinese government heavily subsidizes its textile and apparel industry through multiple unfair trade practices, including currency manipulation, direct industrial subsidization and the use of state banks that provide credit which never has to be repaid (non-performing loans), among others.
All US textile and apparel import data statistics were obtained from US Office of Textiles and Apparel on September 13, 2005.
If CITA approves a safeguard petition, by terms of its WTO accession agreement with the United States, a consultation period then begins. If no agreement is reached between the parties, the United States can limit Chinese exports in the safeguard categories to 7.5 percent growth.
marketing@alchempro.com
