[Congressional Record (Bound Edition), Volume 150 (2004), Part 7]
[Extensions of Remarks]
[Page 8534]
[From the U.S. Government Publishing Office, www.gpo.gov]




         THE WOOL SUIT AND TEXTILE TRADE EXTENSION ACT OF 2004

                                 ______
                                 

                           HON. AMO HOUGHTON

                              of new york

                    in the house of representatives

                         Wednesday, May 5, 2004

  Mr. HOUGHTON. Mr. Speaker, today I am pleased to join my colleague 
from New York, Louise Slaughter, introducing the ``Wool Suit and 
Textile Trade Extension Act of 2004.'' This legislation extends and 
improves an existing program designed to equalize the trade treatment 
provided to domestic manufacturers of worsted wool suits.
  Over the last decade a provision in our trade laws has had a 
devastating impact on the tailored clothing industry in the United 
States--reducing employment by half. This provision effectively created 
a suit export industry overnight in Canada and Mexico. Effectively, 
finished suits were able to enter our market duty-free, while our 
domestic producers were forced to contend with a tariff of more than 30 
percent on the fine fabrics used in their production.
  With a shrinking customer base the textile mills that once produced 
enormous amounts of worsted wool fabric reduced their fabric 
production. Competition for supply and prices paid to woolgrowers in 
turn were impacted negatively.
  Our proposal builds on action taken by Congress in 2000 and 2002 to 
address this situation. Under the existing legislation, domestic suit 
makers, textile producers, and the domestic sheep industry received a 
combination of tariff relief and incentives to stabilize employment and 
production in the United States. This program has been extremely 
successful, and stopped the precipitous decline in employment in the 
tailored suit industry.
  However, these provisions expire next year. Because the suit industry 
must design their lines months in advance, the expiration of this 
program will affect pricing and competitiveness much earlier than the 
close of 2005.
  Our proposal extends these provisions for an additional five years, 
and makes improvements in the program for all interested parties. We 
are pleased to note that our legislation has the strong support of the 
suit manufacturers, the garment workers' union--UNITE, the sheep 
association, and the textile industry. As the domestic tailored 
clothing industry and wool textile mills continue to face significant 
challenges maintaining employment and production as a result of an 
unleveled playing field, an extension of this program is timely and 
vital to the continued health of this important manufacturing sector.
  We hope our colleagues will join us in cosponsoring this legislation.

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