“ITAB Support for All U.S. Free Trade Agreements” lists three factors the board will take
into account when considering whether to support any proposed free trade agreement that includes
the United States: ambitious market access obligations; industry-appropriate rules of origin; and
stringent intellectual property standards.

“Even though we have articulated these three requirements to US trade officials for some
time now, INDA’s ITAB wanted a statement that clearly spells out our negotiating objectives for
ongoing and future free trade talks,” said Peter G. Mayberry, director of government affairs, INDA.
“That is exactly what this document is intended to do.”

“Implications of Any New Country’s Entry into the WTO” is the ITAB’s response to the
expanding membership of the World Trade Organization (WTO), which is expected soon to admit Saudi
Arabia as the 149th member country and is considering applications from 30 other countries.
According to the statement, the ITAB will act as a channel to convey potential industry concerns
regarding the conduct of potential WTO members to US officials.

“The ITAB wholeheartedly supports efforts to expand the multilateral trading system,” said
Gonzalo Castro, chairman, ITAB. “Our only concern is that prospective members are held to the same
level of commitment with regards to things like market access, rule of law and intellectual
property rights that is expected of the United States and other existing members.”

The ITAB previously released position statements titled “Imbalances in International Fair
Trade of Nonwovens”; “Rules of Origin”; “Intellectual Property Rights”; and “WTO Negotiations and
ITAB Cooperation with other Industry Groups.” Copies of ITAB position statements may be requested
by contacting Jessica Franken jfranken@aol.com.

Quesenberry replaces David Spooner, who will now serve as Assistant Secretary of Commerce
for Import Administration. Spooner will have oversight responsibilities for the implementation of
textile agreements, including administration of the Department of Commerce Office of Textiles and
Apparel. The American Floor Covering Alliance (AFA) is hopeful that the US Senate acts as soon as
possible to confirm Spooner as Assistant Secretary of Commerce.

Both Spooner and Quesenberry face immediate and significant challenges as the US government
prepares for the upcoming Hong Kong Ministerial Conference of the World Trade Organization.
Quesenberry will take the lead on upcoming textile negotiations included in negotiations for free
trade agreements now underway between the United States and a number of other countries and
regions.

Quesenberry’s appointment was announced to attendees of the November 30 meeting of the
Industry Trade Advisory Committee for Textiles & Apparel. AFA looks forward to working with
Quesenberry as it continues to participate as a member of this committee and to work closely on
textile issues in the free trade agreement discussions. AFA hopes to invite Quesenberry to visit
Northwest Georgia to learn more about the carpet industry and its contributions to the US economy.

Press Release Courtesy of AFA

The Easy Care label designates leisurewear that is easy to maintain and hard-wearing, while
the Non Iron label indicates cotton shirts, blouses and pants that retain their shape and do not
need ironing. The new labels complement the company’s Cosinel label for non-iron, fleecy-soft bed
linens that retain their shape.

“At present, end-users are confused by a variety of quality attributes such as
wrinkle-resistant, easy iron or wash and wear,” said Christina Zörner, textile value chain
marketing, BASF. “The clearly defined BASF labels enable the advantages of the easy-care,
high-quality textiles to be seen at a glance, and thus help the consumer decide what to buy.

• Blowroom prepatory machines

• Card C 60

• Drawframe RSB

• Comber E 62 and UNIlap E32

• Speed Frame F 11

• Ringspinning Frame K44 (compact spinning)

• Rotorspinner R40



Press Release Courtesy of Rieter

The actions were taken to clear the slate for a new set of quotas on Chinese imports that
will go into effect January 1. The release of the embargoed goods was part of the comprehensive
agreement between the United States and China, placing quotas on some 32 textile and apparel
product categories. The embargoed goods now can be delivered to US importers for sale to consumers.
Products released from the embargo include cotton and man-made fiber trousers, cotton and man-made
fiber knit shirts, brassieres and underwear.

The released product categories are included in the comprehensive agreement covering imports
from January 1, 2006 through 2008, as well as other products. That agreement provides for import
restraints on 32 of the most sensitive product categories. While growth rates vary somewhat from
category to category, the general growth rates for apparel categories are set at 10 percent in
2006, 12.5 percent in 2007 and 15 percent in 2008. For textile products, the growth rates are 12.5
percent in 2006 and 2007 and15 percent in 2008.

While the agreement covers all of the product categories US manufacturers consider the most
sensitive at this time, they reserve the right to petition the government to impose safeguard
quotas on additional product categories should the need arise and can be justified. Importers,
however, say they are opposed to future use of the safeguard mechanism, which they have opposed
from the outset.