Safeguard Requests Back On Track

The US Committee for the Implementation of Textile Agreements (CITA), Washington, has imposed
safeguards on seven categories of US textile and apparel imports from China and reinstated the
public comment period for five others under consideration. The action follows a Federal Court of
Appeals stay of the Court of International Trade’s injunction last December that halted
consideration of safeguard petitions based on the threat of market disruption.

The safeguards were imposed on cotton and man-made fiber knit shirts and blouses, trousers,
underwear, and men’s and boys’ woven shirts; and combed cotton yarn. CITA’s action limits further
growth this year of Chinese exports of these products to 7.5 percent. CITA and China now must
consult to negotiate growth limits. If no agreement is reached, the safeguards will remain in
effect until the end of this year, and must be reconsidered each year until 2008
(See ”
Textile Safeguard: Process Effect
,” December 2004)

US imports from China in all 12 categories have grown exponentially since quotas were removed
January 1, thereby significantly increasing the bases for applying the quotas.

June 2005