[Federal Register Volume 69, Number 225 (Tuesday, November 23, 2004)]
[Notices]
[Pages 68133-68134]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3306]


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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 17, 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 combed cotton yarn (Category 
301).

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SUMMARY: The Committee has received a request from the National Council 
of Textile Organizations, the National Textile Association, and the 
American Manufacturing Trade Action Coalition (Requestors) asking the 
Committee to limit imports from China of combed cotton yarn 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;

[[Page 68134]]

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 request. 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 27, 2004, the Requestors asked the Committee to impose 
an Accession Agreement textile and apparel safeguard action on imports 
from China of combed cotton yarn (Category 301) on the ground that an 
anticipated increase in imports of combed cotton yarn after January 1, 
2005, threatens to disrupt the U.S. market for combed cotton yarn. 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 combed cotton yarn and, if so, the role of Chinese-
origin combed cotton yarn 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 imports of combed cotton yarn 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 combed cotton yarn 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 combed cotton yarn, 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 
combed cotton yarn that is 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 combed cotton yarn 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 combed cotton yarn, and 
whether actual or anticipated imports of Chinese-origin combed cotton 
yarn are likely to affect the development and production efforts of the 
U.S. combed cotton yarn industry; and (6) Whether U.S. managers, 
retailers, purchasers, importers, or other market participants have 
recognized Chinese producers of combed cotton yarn 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 23, 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 therefore to be 
published in the Federal Register. If the Committee makes an 
affirmative determination that imports of Chinese origin combed cotton 
yarn 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. E4-3306 Filed 11-22-04; 8:45 am]
BILLING CODE 3510-DS-S