Government Appeals Textile Safeguard Injunction
James A. Morrissey, Washington Correspondent
The US Justice Department has appealed an injunction by a federal court that blocked the Committee for the Implementation of Textile Agreements (CITA) from using a threat of market disruption in considering safeguard petitions that could result in imposition of new import quotas on Chinese textile and apparel imports.
Last December, the US Court of International Trade in New York issued a preliminary injunction that enjoins CITA from accepting, considering or taking any further action on China textile safeguard petitions based on a threat of market disruption filed by US textile manufacturers. CITA had accepted a dozen petitions based on the threat of market disruption, which is a provision in China's accession to the Word Trade Organization agreement.
The United States Association of Importers of Textiles and Apparel challenged CITA's right to use threat of market disruption charging that in accepting the petitions, CITA broke its own rules providing for interested parties to comment on such petitions. The merits of the petitions are not being challenged at this time, only the procedures followed by CITA. The preliminary injunction does not affect a number of petitions pending before CITA based on what the industry says is actual market disruption.
The federal court is likely to take at least a month to rule on the Justice Department petition.