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The International Textile Organization Urges The US Government To Monitor China'S Textile Exports

2008/9/23 14:04:00 18

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International Textile US Government China Textile Export

The special safeguard measures implemented by the United States for China's textile and clothing products will be abolished in January 1, 2009.

On Friday, textile and apparel organizations in 17 countries urged congressional leaders to support the Bush administration's extension of surveillance arrangements for textiles exports to China.

The trade associations signed on the letters represent about one million textile and garment workers in Africa, Asia, South America and North America. Their livelihoods are threatened by the dumping of Chinese clothing products after the cancellation of special safeguard measures.

The textile and garment organizations signed on the letters came from 17 countries: Kampuchea, Costa Rica, Dominica, Ecuador, Ethiopia, Kenya, Lesotho, Madagascar, Mexico, Nicaragua, Peru, Philippines, South Africa and the United States.

The reasons for these organizations to extend the monitoring arrangements are as follows:

* since 2001, the share of China's apparel market in the United States has increased from about 15% to 60% (the category of quotas has been abolished).

Since 2001, China's textile and apparel exports to the US have expanded by US $25 billion 500 million, from US $6 billion 500 million to US $32 billion, almost 400%.

As a result, developing countries and the least developed countries have already lost hundreds of thousands of jobs.

* in 2005, when the product quotas restricted by special safeguard measures were abolished, Chinese enterprises reduced prices by 40% and exports expanded by 600% in a very short time.

Huge blowout caused us to implement special safeguard measures, and special safeguard measures will expire in January 1, 2009.

* the EU cancelled special safeguard measures in January 1, 2008. After that, China's clothing export, which was previously restricted by special safeguard, increased by 34%.

Certain categories of prices fell by 44%.

* last month, China announced that it would increase subsidies for textile enterprises by raising export tax rebates for textiles.

China also said it would increase other subsidies for the textile industry.

According to information from the US government, the Chinese government has provided 63 subsidies to textile and garment enterprises, many of which are WTO prohibited subsidies.

Vietnam is another non market economy country. Vietnam's textile quota was abolished in 2006. At present, the United States monitors Vietnam's textile industry.

According to the monitoring arrangement, the US government checks the initial import data of products category every month. If the dumping signs are found, the US government will initiate the dumping investigation automatically.

Vietnam's export surveillance arrangements will end in January 2009.