WASHINGTON — The interagency Committee for the Implementation of Textile Agreements on Friday accepted for full review a safeguard petition seeking to impose quota limits on cotton trouser imports from China, valued at $280.2 million last year.
It marks the first time the Bush administration has accepted for full review a safeguard petition based on the threat of market disruption versus actual market disruption. That represents a procedural victory for the domestic apparel and textile coalition that brought the petition and a blow to retail and importing associations that oppose the concept of threat-based petitions.
Many on both sides of the issue claim CITA’s decision Friday sets a precedent for the six other threat-based petitions that have been filed, as well as another six that the coalition has promised to file. The National Council of Textile Organizations, American Manufacturing Trade Action Coalition, National Textile Association, SEAMS, American Fiber Manufacturers Association and UNITE HERE are targeting some $1.96 billion in imports from China for continued quota restraints.
Under a section of the petition titled “The Threat of Increased Imports From China,” the coalition said “there is strong and compelling evidence from many sources that imports of the subject products from China will increase when quotas are removed on Jan. 1.”
Erik Autor, vice president and international trade counsel of the National Retail Federation, said, “China has less than a 2 percent import share of cotton trousers over the past four years; imports of cotton trousers from China from January through July 2003, compared with January through July 2004, fell 38 percent, and prices have been up for two years. Based on those three criteria, it is difficult for us to see any threat of market disruption.
CITA’s acceptance of the petition for full review triggers a 30-day comment period, which will be followed by another 60 days to make a determination.
“It’s the first hurdle,” said an AMTAC spokesman. “We felt like we had compiled far more information than necessary to achieve the technical acceptance of the case, and we also believe this is an extremely strong case.”
Allen Gant, chairman of NCTO, and president of Glen Raven Inc., said in a statement: “This is definitely a good first step. We believe we have a very strong case that should be approved. Our industry is looking for our government to approve these petitions and prevent China from taking over virtually the entire U.S. textile and apparel market at the expense of U.S. jobs. We have a long way to go, and we look forward to working with the government toward this end.”
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The associations said in the 62-page petition, including exhibits, that U.S. production has fallen dramatically, China’s market share has increased significantly and imports of cotton trousers from China have risen by 39.5 percent from 1999 to 2003.
U.S. production of cotton trousers totaled $8.2 billion in 2003, while imports of cotton trousers from the world to the U.S. stood at $11.3 billion and imports from China were $280.2 million.