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US industry reapplies for nine safeguards against China

Citing continuing Chinese govzrnment intransigence on bilateral consultations and an ongoing flood of Chinese textile and apparel imports, US textile industry and labor union officials announced that they have filed to reapply nine current safeguards covering sixteen product categories through the end of 2006 on September 14. All nine safeguards are scheduled to expire at the end of this year. Over the last seven months, US imports from China in the apparel safeguard categories grew by 850 million garments, an average increase of 627 per cent. According to UN trade databases, Chinese prices for these and other major apparel items are on average 58 per cent below the prices other countries charge.

"With China showing little serious interest thus far in negotiating a comprehensive agreement, the industry is forced to seek renewal of the safeguard through 2006. The US textile industry is refiling these petitions now to give the US government the opportunity to renew the current safeguards seamlessly in January 2006 if no comprehensive textile agreement is reached," Mr Cass Johnson, president, National Council of Textile Organizations (NCTO) continued.

American Manufacturing Trade Action Coalition (AMTAC) executive director Mr Auggie Tantillo said, "The US textile industry also intends to file additional safeguard petitions covering fabrics, apparel, and home furnishing products in the very near future. This action on behalf of the unified textile industry is a signal that US textile industry aggressively will utilise the WTO safeguard process to the fullest degree possible. It is critical that the US government approve these cases in a timely manner to prevent China from surging into the US market in 2006 like they did in 2005."

The combined value of total US imports for the 16 categories covered by the September 15 announcement for year-to-date 2005 is US$ 24.2 billion, with imports from China accounting for US$ 3.4 billion. Value of Chinese imports covered by the petitions amounts to 26 per cent of the US$ 13.1 billion in textile and apparel imports from China and seven per cent of the US$ 50.6 billion in imports from the world (including China) in 2005. In terms of the US$ 130 billion in total US imports of all goods from China in 2005, these petitions affect only 2.6 per cent of that trade.