[Federal Register Volume 69, Number 216 (Tuesday, November 9, 2004)]
[Notices]
[Pages 64914-64915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3084]


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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 and man-made fiber 
underwear (Category 352/652).

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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, and UNITE HERE! 
(Requestors) asking the Committee to limit imports from China of cotton 
and man-made fiber underwear 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 15, 2004, the Requestors asked the Committee to impose 
an Accession Agreement textile and apparel safeguard action on imports 
from China of cotton and man-made fiber underwear (Category 352/652) on 
the ground that an anticipated increase in imports of cotton and man-
made fiber underwear after January 1, 2005, threatens to disrupt the 
U.S. market for cotton and man-made fiber underwear. 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 and man-made fiber underwear and, if so, the 
role of Chinese-origin cotton and man-made fiber underwear 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)

[[Page 64915]]

Whether imports of cotton and man-made fiber underwear 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 and man-made fiber underwear 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 and man-made 
fiber underwear, 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 and man-made fiber underwear 
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 
and man-made fiber underwear 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 and man-made fiber underwear, 
and whether actual or anticipated imports of Chinese-origin cotton and 
man-made fiber underwear are likely to affect the development and 
production efforts of the U.S. cotton and man-made fiber underwear 
industry; and (6) Whether U.S. managers, retailers, purchasers, 
importers, or other market participants have recognized Chinese 
producers of cotton and man-made fiber underwear 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 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 and 
man-made fiber underwear 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. E4-3084 Filed 11-8-04; 8:45 am]
BILLING CODE 3510-DS-S