The US government is clearly determined to reimpose quotas on major categories of apparel from China. .
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A statement from the US Department of Commerce Monday announced that safeguard proceedings would soon be initiated to investigate if the current surge in imports from China is disrupting US market. .
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Under China WTO accession agreement, importing countries are allowed to reimpose quotas in textile and apparel categories if imports are “due to market disruption, threatening to impede the orderly development of trade in these products.”Targeted categories include cotton trousers (347/348), cotton knit shirts (338/339) and cotton and man-made fiber underwear (352/652). .
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US imports from China were up 1,521% in the first quarter in 347/348 while rising 1,257% in 337/338 and 309% in 352/652. .
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The Bush administration decided to self-initiate investigations in order to save time. The CITA will shortly publish notices requesting public comments during a 30 day-period. .
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The interagency panel will then have 60 more days to say if quotas will be reimposed. The CITA could actually take its decision in only seven to ten days before immediately requesting consultations with China. .
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Quotas will be reimposed as soon as consultations are officially requested. .
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The whole procedure would actually take five weeks before setting new limits, as Monday estimated by US industry association NCTO (National Council of Textile Organizations). .
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New quotas would therefore be reimposed from mid-May. Under WTO rules, the level for the following 12-month period will be set at 7.5% above the amount of imports entered into the United States during the first 12 months of the most recent 14 months.More clearly, March 2004-February 2005 imports could be selected as a base level with an increase of 7.50% added to this 12-month amount.As a result, new quotas would be set at much lower levels than the current amount of imports from China. .
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US imports from China were until now maintained at extremely low levels. Due to the current boom in shipments, they could rapidly account for a large share of total US imports, however. .
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Speeding up procedures will therefore result in strictly limiting imports from China, also leaving to other low-cost exporters a chance to survive in the quota-free world. .
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In addition to the three investigations that will be self-initiated by the US administration, a series of petitions will soon be filed by US textile industry association NCTO. .
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In the second half last year, NCTO and other associations already filed a long list of petitions covering a large number of categories. .
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US administration accepted considering these petitions but was barred from further investigating by a US Court, since requests were based on a threat of market disruption and not on effective disruption. .
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Source: emergingtextiles.com
Date:4/10/2005
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