CITA Postpones Until July 31, 2005 its Determination on Whether to Impose Safeguard Quota on China Cat 620 Based on Threat
The International Trade Administration (ITA) has issued a fact sheet announcing that the Committee for the Implementation of Textile Agreements (CITA) has extended until July 31, 2005 the period for making a determination on whether to request consultations with China, and at the same time impose a safeguard quota, on China cat 620 (other synthetic filament fabric)1.
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China 620 Subject to Both Threat-Based Request and Market Disruption Request
China cat 620 is subject to both a threat-based request and a market disruption request for safeguard relief that were filed by the domestic textile industry and its workers2. The public comment period on the threat-based request, which CITA was previously enjoined from considering, closed on May 17, 2005, while the public comment period on the market disruption request closed on June 3, 2005.
(See ITT's Online Archives or 05/09/05 news, 05050912, for BP summary of CITA's resumption of consideration of this cat 620 and other China safeguard petitions based on "threat of" market disruption. See ITT's Online Archives or 05/03/05 news, 05050305, for BP summary of CITA's notice seeking comments on this cat 620 and other China safeguard petitions based on actual market disruption.)
60-Day Determination Period for Threat-Based Request Expired July 18, But CITA Unable to Make Determination
According to the ITA, the 60-day determination period for the threat case expired on July 18, 2005. However, CITA is unable to make a determination at this time. CITA is continuing to evaluate conditions in the U.S. market for other synthetic filament fabric and information obtained from public comments on both the threat and market disruption cases.
The ITA notes that CITA will publish shortly a Federal Register notice of its decision to extend the determination period until July 31, 2005.
(The ITA explains that according to CITA's procedures, CITA will make a determination within 60 calendar days of the close of the public comment period as to whether the U.S. will request consultations with China. If CITA is unable to make a determination within 60 calendar days, it will publish a notice in the Federal Register, including the date by which it will make a determination.)
If U.S. Requests Consultations with China, Quota Expected to be Imposed
If CITA makes an affirmative determination that imports of Chinese origin other synthetic filament fabric threaten to disrupt the U.S. market, the U.S. will request consultations with China with a view to easing or avoiding such market disruption.
Beginning on the date that it receives such a request, China must restrict its shipments to the U.S. of the subject product to a level no greater than 7.5% (6% for wool product categories) above the amount entered during the first 12 months of the most recent 14 months preceding the month in which the request was made. In addition, the U.S. is expected to implement this level as a quota limit.
1 The ITA states that cat 620 includes primarily synthetic filament fabrics of nylon and polyester, other than lightweight polyester filament fabric.
2 The American Manufacturing Trade Action Coalition (AMTAC), the National Council of Textile Organizations (NCTO), the National Textile Association (NTA), and UNITE HERE filed these safeguard petitions on November 8, 2004 and April 6, 2005, respectively.
ITA fact sheet available at http://www.ita.doc.gov/media/FactSheet/0705/cita_071805.html