On April 4, 2005, the US government self-initiated three safeguard investigations into surging US apparel imports from China.
In addition, on April 28, 2005, the US Court of Appeals for the Federal Circuit stayed the injunction issued by the US Court of International Trade that prevented the US government from acting on threat based safeguard petitions filed by the US textile industry to limit surging imports from China.
Following these events, the US government went on to approve ten (10) safeguard cases covering nineteen (19) categories by early November.
"They do not believe that the increase in textile and apparel output over the last four to six months is an accident.
It is now apparent that one of the reasons why US textile and apparel output began to increase was that the US government actively began to move toward imposing safeguards on China," stated Tantillo.
"Further proof of the impact of safeguards can be seen in the Chinese government's reporting that garment sales to US importers and retailers at the China Export Commodities Fair, China's biggest trade expo, fell by 44 percent compared to the previous fair given uncertainties over export quotas and trade disputes," Tantillo continued.
Tantillo noted in conclusion however, "While the news today regarding the impact of safeguards is good, many companies still are struggling under the massive burdens imposed by China's unfair trade practices.
Such practices include, but are not limited to, currency manipulation, non-performing loans, illegal transshipping, intellectual property rights violations, and other direct subsides.
It is imperative that the US government address the problems concerning these issues in a comprehensive manner if the US textile industry to thrive in the 21st Century as it did during the previous one".
American Manufacturing Trade Action Coalition
marketing@alchempro.com
