[Federal Register Volume 69, Number 216 (Tuesday, November 9, 2004)]
[Notices]
[Pages 64912-64913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3082]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Solicitation of Public Comments on Request for Textile and 
Apparel Safeguard Action on Imports From China

November 3, 2004.
AGENCY: The Committee for the Implementation of Textile Agreements (the 
Committee).

ACTION: Solicitation of public comments concerning a request for 
safeguard action on imports from China of cotton knit shirts and 
blouses (Category 338/339).

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SUMMARY: The Committee has received a request from the American 
Manufacturing Trade Action Coalition, National Council of Textile 
Organizations, the National Textile Association, SEAMS, and UNITE HERE! 
(Requestors) asking the Committee to limit imports from China of cotton 
knit shirts and blouses in accordance with the textile and apparel 
safeguard provision of the Working Party on the Accession of China to 
the World Trade Organization (the Accession Agreement). The Committee 
hereby solicits public comments on this request.

FOR FURTHER INFORMATION CONTACT: Jay Dowling, Office of Textiles and 
Apparel, U.S. Department of Commerce, (202) 482-4058.

SUPPLEMENTARY INFORMATION:

    Authority: Section 204 of the Agriculture Act of 1956, as 
amended; Executive Order 11651, as amended.

Background

    The textile and apparel safeguard provision of the Accession 
Agreement provides for the United States and other members of the World 
Trade Organization that believe imports of Chinese origin textile and 
apparel products are, due to market disruption, threatening to impede 
the orderly development of trade in these products to request 
consultations with China with a view to easing or avoiding the 
disruption. Pursuant to this provision, if the United States requests 
consultations with China, it must, at the time of the request, provide 
China with a detailed factual statement showing ``(1) the existence or 
threat of market disruption; and (2) the role of products of Chinese 
origin in that disruption.'' Beginning on the date that it receives 
such a request, China must restrict its shipments to the United States 
to a level no greater than 7.5 percent (6 percent 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. If exports from China exceed that amount, the United States may 
enforce the restriction.
    The Committee has published procedures (the Procedures) it follows 
in considering requests for Accession Agreement textile and apparel 
safeguard actions (68 FR 27787, May 21, 2003; 68 FR 49440, August 18, 
2003), including the information that must be included in such requests 
in order for the Committee to consider them.
    On October 13, 2004, the Requestors asked the Committee to impose 
an Accession Agreement textile and apparel safeguard action on imports 
from China of cotton knit shirts and blouses (Category 338/339) on the 
ground that an anticipated increase in imports of cotton knit shirts 
and blouses after January 1, 2005, threatens to disrupt the U.S. market 
for cotton knit shirts and blouses. The request is available at http://otexa.ita.doc.gov. In light of the considerations set forth in the 
Procedures, the Committee has determined that the Requestors have 
provided the information necessary for the Committee to consider the 
request.
    The Committee is soliciting public comments on the request, in 
particular with regard to whether there is a threat of disruption to 
the U.S. market for cotton knit shirts and blouses and, if so, the role 
of Chinese-origin cotton knit shirts and blouses in that disruption. To 
this end, the Committee seeks relevant information addressing factors 
such as the following, which may be relevant in the particular 
circumstances of this case, involving a product under a quota that will 
be removed on January 1, 2005: (1) Whether cotton knit shirts and 
blouses imports from China are entering, or are expected to enter, the 
United States at prices that are substantially below prices of the like 
or directly competitive U.S. product, and whether those imports are 
likely to have a significant depressing or suppressing effect on 
domestic prices of the like or directly competitive U.S. product or are 
likely to increase demand for further imports from China; (2) Whether 
exports of Chinese-origin cotton knit shirts and blouses to the United 
States are likely to increase substantially and imminently (due to 
existing unused production capacity, to capacity that can easily be 
shifted from the production of other products to the production of 
cotton knit shirts and blouses, or to an imminent and substantial 
increase in production capacity or investment in production capacity), 
taking into account the availability of other markets to absorb any 
additional exports; (3) Whether Chinese-origin cotton knit shirts and 
blouses that are presently sold in the Chinese market or in third-
country markets will be diverted to the U.S. market in the imminent 
future (for example, due to more favorable pricing in the U.S. market 
or to existing or imminent import restraints into third country 
markets); (4) The level and the extent of any recent change in 
inventories of cotton knit shirts and blouses in China or in U.S. 
bonded warehouses; (5) Whether conditions of the domestic industry of 
the like or directly competitive product demonstrate that market 
disruption is likely (as may be evident from any anticipated factory 
closures or decline in investment in the production of cotton knit 
shirts and blouses, and whether actual or anticipated imports of 
Chinese-origin cotton knit shirts and blouses are likely to affect the 
development and production efforts of the U.S. cotton knit shirts and 
blouses industry; and (6) Whether U.S. managers, retailers, purchasers, 
importers, or other market participants have recognized Chinese 
producers of cotton knit shirts and blouses as potential suppliers (for 
example, through pre-qualification procedures or framework agreements).
    Comments may be submitted by any interested person. Comments must 
be received no later than December 9, 2004. Interested persons are 
invited to submit ten copies of such comments to

[[Page 64913]]

the Chairman, Committee for the Implementation of Textile Agreements, 
Room 3001A, U.S. Department of Commerce, 14th and Constitution Avenue 
N.W., Washington, DC 20230.
    The Committee will protect any business confidential information 
that is marked ``business confidential'' from disclosure to the full 
extent permitted by law. To the extent that business confidential 
information is provided, two copies of a non-confidential version must 
also be provided in which business confidential information is 
summarized or, if necessary, deleted. Comments received, with the 
exception of information marked ``business confidential'', will be 
available for inspection between Monday - Friday, 8:30 a.m and 5:30 p.m 
in the Trade Reference and Assistance Center Help Desk, Suite 800M, USA 
Trade Information Center, Ronald Reagan Building, 1300 Pennsylvania 
Avenue, NW., Washington, DC, (202) 482-3433.
    The Committee will make a determination within 60 calendar days of 
the close of the comment period as to whether the United States will 
request consultations with China. If the Committee is unable to make a 
determination within 60 calendar days, it will cause to be published a 
notice in the Federal Register, including the date by which it will 
make a determination. If the Committee makes a negative determination, 
it will cause this determination and the reasons therefor to be 
published in the Federal Register. If the Committee makes an 
affirmative determination that imports of Chinese origin cotton knit 
shirts and blouses threaten to disrupt the U.S. market, the United 
States will request consultations with China with a view to easing or 
avoiding the disruption.

James C. Leonard III,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. E4-3082 Filed 11-8-04; 8:45 am]
BILLING CODE 3510-DS-S