Textile Associations Seek Chinese Import Monitoring

James A. Morrissey, Washington Correspondent

Trade associations representing textile and apparel manufacturers in 17 countries have written to leaders of Congress and the Bush administration urging them to create an import monitoring system after quotas are removed from Chinese imports in January 2009. Although any such monitoring program would cover imports into the United States, the other countries are concerned about displacement of their exports by Chinese products. A similar monitoring program covering Vietnamese trade has been in effect since 2006, but it has not shown any evidence of dumping products.

An announcement by the National Council of Textile Organizations said the associations signing the letters represent manufacturers that employ one million textile and apparel workers in Africa and South and North America.  The organizations cited the following reasons for seeking the monitoring program:

1)    Since 2001, the Chinese share of the US apparel market has increased from an estimated 15 percent to 60 percent in those categories in which quotas have been removed.
2)    When quotas on the products currently under safeguard quotas were briefly removed in 2005, prices dropped by 40 percent, and as a result of an import surge, quotas were restored on the categories that are due to expire in January 2009.
3)    Since the European Union removed its safeguards on Jan. 1, 2008, Chinese imports have  increased by 34 percent in apparel categories that were previously under safeguards, and prices in some categories dropped as much as 44 percent.
4)    China announced last month that it was increasing subsidization of its textile sector by hiking the export tax rebate for textiles.

The letters — sent to Rep. Charles Rangel, D-N.Y., chairman of the House Ways and Means Committee; Sen. Max Baucus, D-Mt., chairman of the Senate Finance Committee; US Trade Representative Susan C. Schwab; and Secretary of Commerce Carlos Gutierrez — were signed by textile and apparel associations in Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Ethiopia, Honduras, Kenya, Lesotho, Madagascar, Mauritius, Mexico, Nicaragua, Peru, Philippines, South Africa and the United States.

US importers of textiles and apparel are strongly opposed to a Chinese import monitoring system.

September 16, 2008