US To Limit Imports From China

Imports of Chinese Textiles, Clothing Up 63%

U.S. imports of Chinese textiles and clothing spiked 63 percent in the first quarter following the end of longtime import quotas.

First-quarter imports from China were up compared with last year in nearly three-fourths of 163 product categories. During the first three months of the year, $78.3 million cotton knit shirts had been imported from China, an increase of more than 1,257 percent from the same period a year ago. $74.1 million cotton trousers had been imported, rose 1,521 percent from last year.

CITA Invoke Safeguards on Chinese Textile Imports

On 13 May 2005, The Committee for the Implementation of Textile Agreements (CITA) determined that the U.S. market is being disrupted by 3 categories of textile imports:-

·        Category 338/339        Cotton knit shirts and blouses

·        Category 347/348        Cotton trousers

·        Category 352/652        Cotton and man-made fiber underwear

On May 18 2005 CITA announced on plans to impose safeguard quotas by the end of May against four categories of textile and apparel goods from China:-

·        Category 301         Combed cotton yarn

·        Category 340/640  Men’s and boys’ cotton and manmade fiber shirts, not knit

·        Category 638/639  Manmade fiber knit shirts and blouses

·        Category 647/648  Manmade fiber trousers

This announcement came after CITA made affirmative decisions on the threat-based safeguard petitions filed last fall against these four categories. Goods that fall into any of these categories that are exported prior to the effective date (i.e., the date consultations are formally requested with China) will not be subject to these safeguard quotas. Goods exported on or after that date will be subject to the quotas.

Background: On April 4, 2005, CITA announced its decision to initiate safeguard proceedings on several categories of product. On May 5, 2005, CITA announced the resumption of consideration of twelve requests for safeguard action, based on the threat of market disruption, that were received from certain textile and apparel trade associations in October, November and December 2004.  Besides the above 7 categories, requesters asked the Committee to investigate the following products:-

·        Category 222               Knit Fabric

·        Category 349/649        Brassieres and other body supporting garments

·        Category 350/650        Dressing gowns and robes

·        Category 447               Men's and boys' wool trousers 

·        Category 620               Other synthetic filament fabric

More cases seeking re-imposition of textile quotas are expected from the industry in the near future.

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