[Federal Register Volume 69, Number 242 (Friday, December 17, 2004)]
[Notices]
[Pages 75516-75517]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3712]


-----------------------------------------------------------------------

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


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

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 knit fabric (Category 222).

-----------------------------------------------------------------------

SUMMARY: The Committee has received a request from the National Council 
of Textile Organizations, the National Textile Association, the 
American Manufacturing Trade Action Coalition, and UNITE HERE! 
(Requestors) asking the Committee to reapply the limit on imports from 
China of knit fabric 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). On December 24, 
2003 the Committee established an Accession Agreement limit on imports 
from China of knit fabric, which will expire on December 23, 2004. 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

[[Page 75517]]

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 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 November 19, 2004, the Requestors asked the Committee to reapply 
an Accession Agreement textile and apparel safeguard action on imports 
from China of knit fabric (Category 222) on the grounds that an 
anticipated increase in imports of knit fabric after December 23, 2004, 
threatens to disrupt the U.S. market for knit fabric. The request is 
available at http://otexa.ita.doc.gov/Safeguard_intro.htm. 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 knit fabric and, if so, the role of Chinese-origin 
knit fabric 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 expire on December 23, 2004: (1) 
Whether imports of knit fabric 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 knit fabric 
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 knit fabric, 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 knit fabrics 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 knit fabric 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 knit fabric, and 
whether actual or anticipated imports of Chinese-origin knit fabric are 
likely to affect the development and production efforts of the U.S. 
knit fabric industry; and (6) whether U.S. managers, retailers, 
purchasers, importers, or other market participants have recognized 
Chinese producers of knit fabric 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 January 18, 2005. 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 NW., 
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 knit fabric 
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. E4-3712 Filed 12-16-04; 8:45 am]
BILLING CODE 3510-DR-P