[Federal Register Volume 70, Number 195 (Tuesday, October 11, 2005)]
[Notices]
[Pages 59043-59044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20409]


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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

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 man-made fiber knit shirts 
and blouses (Category 638/639).

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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 man-made fiber knit shirts and blouses (Category 638/
639). 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 man-made fiber knit shirts and blouses. The 
current limit on man-made fiber knit shirts and blouses expires on 
December 31, 2005. The Committee hereby solicits public comments on 
this request, in particular with regard to whether imports from China 
of man-made fiber knit shirts and blouses 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 Order 11651, 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

[[Page 59044]]

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 man-made fiber knit shirts and blouses 
(Category 638/639). 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 man-made fiber knit shirts and blouses and, if so, 
the role of Chinese-origin man-made fiber 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 December 31, 2005: (1) Whether man-made 
fiber knit shirt and blouse 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 man-made 
fiber 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 man-made fiber 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 man-made fiber 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 
market); (4) The level and the extent of any recent change in 
inventories of man-made fiber 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 man-made fiber 
knit shirts and blouses, and whether actual or anticipated imports of 
Chinese-origin man-made fiber knit shirts and blouses are likely to 
affect the development and production efforts of the U.S. man-made 
fiber knit shirt and blouse industry; and (6) Whether U.S. managers, 
retailers, purchasers, importers or other market participants have 
recognized Chinese producers of man-made fiber 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 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 Chinese origin man-
made fiber knit shirts and blouses 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. 05-20409 Filed 10-6-05; 1:38 pm]
BILLING CODE 3510-DS-S