US Implemented 3 Safeguard Measures To Curbs Chinese Imports 

The US Government has decided to impose quotas on three types of textile products in an effort to give the US textile industry temporary breathing room from the recent flood of Chinese imports.

The decision will affect Chinese imports of knit fabric (Category 222), cotton and man-made fibre dressing gowns (Category 350/650) and cotton and man-made fibre bras (Category 349/649). US textile makers hailed the decision as a major victory to protect their beleaguered industry, but critics warned that the decision would hurt American consumers by raising prices.

If agreement is not reached by March 23, 2004, the following unilateral restraints will take effect retroactive to December 24, 2003:

Category                                    .Limit

222                                              9,664,477 kg
349/649                                     16,828,971 doz
350/650                                       4,094,382 doz

These levels are based on US imports for the 12-month period ending on September 30, 2003, plus the agreed upon uplift of 7.5% and would be effective from December 24, 2003, through December 23, 2004.

Earlier this year, the US textiles industry filed petitions under a special provision of the agreement China signed to gain entry into the World Trade Organization. This provision allows the United States and other WTO members to impose temporary quotas on textile imports from China in the event that those products are causing "market disruption".

Surging Chinese textile imports to the United States are to be capped following the announcement of new import quotas by the Bush administration. The decision will see Chinese textile shipments capped at 7.5% annually above the previous 12 months’ total.

However, the quotas extend to less than 5% of China’s textile exports to the US, with affected garments to include knit fabrics, dressing gowns and brassieres.

A trade group for retailers including Gap Inc and JC Penney Co have expressed opposition to the decision, saying it will cause consumer prices to rise, while China’s Ministry of Commerce has also protested the quotas.

China has threatened to appeal the decision through the WTO, in a bid to “protect the rights and interests of Chinese industries”.

Since 1997, the textile industry has closed more than 250 US plants, including 50 in the last 18 months according to American Textile Manufacturers Institute figures. More than 200,000 US workers have lost their jobs in the industry in that time, including 30,000 since January 2002, the trade body said.

Data compiled by the American Manufacturers Trade Action Coalition, which has pushed for the "safeguard" quotas, shows that in the first nine months of this year, cotton bra imports from China grew nearly 53%; manmade fiber bras, nearly 78%; knit fabric, 39%; cotton gowns, nearly 141%; and manmade fibre gowns and robes, nearly 85%.

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