[Federal Register Volume 70, Number 195 (Tuesday, October 11, 2005)]
[Notices]
[Pages 59041-59042]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20407]


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

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


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

October 5, 2005.
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).

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

SUMMARY: On September 14, 2005, the Committee received a request from 
the American Manufacturing Trade Action Coalition, the National Council 
of Textile Organizations, the National Textile Association, SEAMS, and 
UNITE HERE requesting that the Committee reapply a limit on imports 
from China of cotton and man-made fiber underwear (Category 352/652). 
They request that a textile and apparel safeguard action, as provided 
for in the Report of the Working Party on the Accession of China to the 
World Trade Organization (the Accession Agreement), be reapplied on 
imports of cotton and man-made fiber underwear. The current limit on 
cotton and man-made fiber underwear expires on December 31, 2005. The 
Committee hereby solicits public comments on this request, in 
particular with regard to whether imports from China of cotton and man-
made fiber underwear are, due to the threat of market disruption, 
threatening to impede the orderly development of trade in this product. 
Comments must be submitted by November 10, 2005 to the Chairman, 
Committee for the Implementation of Textile Agreements, Room 3001A, 
United States Department of Commerce, 14th and Constitution Avenue, 
N.W., Washington, DC 20230.

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 Order11651, as amended.

Background

    The Report of the Working Party on the Accession of China to the 
World Trade Organization (WTO) provides that, if a WTO Member, such as 
the United States, believes that imports of Chinese origin textile and 
apparel products are, ``due to market disruption, threatening to impede 
the orderly development of trade in these products'', it may 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.
    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 September 14, 2005, the Committee received a request that an 
Accession Agreement textile and apparel safeguard action be reapplied 
on imports from China of cotton and man-made fiber underwear (Category 
352/652). The Committee has determined that this request provides the 
information necessary for the Committee to consider the request in 
light of the considerations set forth in the Procedures. The text of 
the request is available at http://otexa.ita.doc.gov/Safeguard05.htm.
    The Committee is soliciting public comments on this 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 December 31, 2005: (1) Whether cotton and 
man-made fiber underwear 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 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 market); (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).

[[Page 59042]]

    Comments may be submitted by any interested person. Comments must 
be received no later than November 10, 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 N.W., 
Washington, DC 20230.
    If a comment alleges that there is no threat of market disruption 
or that the subject imports are not threatening to cause market 
disruption, the Committee will closely review any supporting 
information and documentation, such as information about domestic 
production or prices of like or directly competitive products. 
Particular consideration will be given to comments representing the 
views of actual producers in the United States of a like or directly 
competitive product.
    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 expects to 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, however, 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 Chineseorigin cotton 
and man-made fiber underwear are, due to the threat of market 
disruption, threatening to impede the orderly development of trade in 
these products, the United States will request consultations with China 
with a view to easing or avoiding the disruption in accordance with the 
Accession Agreement and the Committee's Procedures.

James C. Leonard III,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. 05-20407 Filed 10-6-05; 1:37 pm]
BILLING CODE 3510-DS-S