China's Agreed Textile and Apparel Quotas to End on December 31, 2008 , Etc.
According to sources at the Committee for the Implementation of Textile Agreements, the agreed quotas imposed on certain China-origin textile and apparel pursuant to the 2006 U.S.-China textile agreement will end on December 31, 2008.
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In addition, any overshipments that are exported in 2008 are likely to be subject to staged entry in 2009, according to CITA sources.
(China's agreed quotas affect textiles and apparel in categories 200/301, 222, 332/432/632T (plus baby socks), (332/432/632B (plus baby socks), 338/339pt, 340/640, 345/645/646, 347/348, 349/649, 352/652, 359S/659S, 363, 443, 447, 619, 620, 638/639pt, 647/648pt, 666pt, and 847.)
WTO 'China Textile Safeguard' Also Ends on December 31, 2008
The China textile safeguard allows World Trade Organization member countries to impose limits on Chinese-origin textile and apparel imports due to market disruption; however, this safeguard also terminates on December 31, 2008.
WTO 'China Product-Specific Safeguard' in Effect Until December 11, 2013
The China product-specific safeguard, which may be used by WTO member countries for any Chinese-origin product, including textiles and apparel, is in place until December 11, 2013.
The safeguard allows WTO members to withdraw concessions granted to China or limit imports from China when Chinese-origin products cause or threaten to cause market disruption. In the U.S., this product specific safeguard has taken the form of Section 421 investigations conducted by the International Trade Commission.
(Although the ITC has made four recommendations that President Bush implement Section 421 restrictions against China due to market disruption caused by products from China (e.g. circular welded non-alloy steel pipe, certain ductile iron waterworks fittings, pedestal actuators, and certain steel wire garment hangars), he declined to take any action.)
Countervailing or Antidumping Duties as a Tool Against China Imports
Countervailing (CV) duties can now be applied to imports from China.
Antidumping (AD) and other import relief measures may not be accessible to certain portions of the U.S. textile industry - for example, those that make components - if what they manufacture is not "like or directly competitive to" the subject Chinese imports. In addition, new AD remedies have not been applied to any imports of textiles or apparel for at least a decade.
(See ITT's Online Archives or 06/01/07 news, 07060120, for BP summary of the Section 421 product-specific safeguard for China.
See ITT's Online Archives or 04/06/07 news, 07040625, for BP summary of Commerce's decision to apply CV duty law to China.
See ITT's Online Archives or 05/08/08 news, 08050820, for BP summary of ITA again deciding not to self-initiate an AD investigation on Vietnam apparel.
See ITT's Online Archives or 12/07/07 news, 07120720, for BP summary of 2008 China quota levels.
See ITT's Online Archives or 04/21/05 news, 05042125, for BP summary of a 2005 GAO report entitled: U.S.-China Trade: Safeguard Procedures Should be Improved.
See ITT's Online Archives or 10/10/02 news, 02101020, for BP summary of 2002 GAO report entitled: World Trade Organization: Analysis of China's Commitments to Other Members.)