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CITA Postpones Until July 31, 2005 its Determination on Whether to Impose Safeguard Quota on China Cat 447 Based on Threat

The Committee for the Implementation of Textile Agreements (CITA) has issued a notice and the International Trade Administration (ITA) has issued a fact sheet announcing that 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 447 (men's and boys' wool trousers, breeches, and shorts).

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China Cat 447 Subject to Threat-Based Request for Safeguard Relief

China cat 447 is subject to a threat-based request for safeguard relief that was filed by the domestic textile industry and its workers. The public comment period on the threat-based request, which CITA was previously enjoined from considering, closed on May 23, 2005.

(See ITT's Online Archives or 05/09/05 news, 05050912, for BP summary of CITA's resumption of consideration of cat 447 and other China safeguard petitions based on "threat of" market disruption.)

60-Day Determination Period for Threat-Based Request Expired July 22, 2005, But CITA Unable to Make Determination

According to CITA, the 60-day determination period for this threat case expired on July 22, 2005. However, CITA is unable to make a determination at this time and is continuing to evaluate conditions in the U.S. market for men's and boy's wool trousers, breeches, and shorts as well as information obtained from public comments on the case.

As a result, CITA is extending the determination period to July 31, 2005. However, CITA may, at its discretion, make such determination prior to that date.

(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 men's and boys' wool trousers, breeches, and shorts 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 6% 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.

The American Manufacturing Trade Action Coalition (AMTAC), the National Council of Textile Organizations (NCTO), the National Textile Association, SEAMS, and UNITE HERE.

(See ITT's Online Archives or 12/13/04 news, 04121310, for BP summary of CITA's original request for comments with respect to the threat-based safeguard quota request on China cat 447.)

CITA Contact - Jay Dowling (202) 482-4058

ITA Fact Sheet available at http://www.ita.doc.gov/media/FactSheet/0705/cita_072205.html

CITA Notice (FR Pub 07/27/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-14953.pdf