CITA Announces it Will Impose Safeguard Quotas on China 301, 340/640, 638/639, and 647/648 Based on "Threat of" Market Disruption (Quotas Expected by End of May 2005)
The Committee for the Implementation of Textile Agreements (CITA) has issued a press release stating that it has made affirmative decisions of "threat of" market disruption in the safeguard cases on China categories 301, 340/640, 638/639 and 647/648. The 30-day comment period for these cases closed prior to December 30, 2004.
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(From approximately December 30, 2004 - April 26, 2005, CITA had been preliminarily enjoined from acting on these, and other, threat-based petitions. See ITT's Online Archives or 05/09/05 news, 05050912, for BP summary on the lifting of this preliminary injunction.)
CITA to Impose Safeguard Quotas on China Cats 301, 340/640, 638/639, and 647/648 by End of May 2005
CITA states that it will request consultations with China before the end of May 2005 in order to ease or avoid the "threat of" market disruption caused by imports of China-origin textiles and apparel in categories 301, 340/640, 638/639 and 647/648. At the same time, CITA states it will impose safeguard quotas on these four product categories for exports on or after the date consultations are requested.
According to CITA, if consultations do not result in a mutually satisfactory agreement for these product categories from China within 90 days of the request for consultations, the safeguard quota(s) will remain in place through December 31, 2005.
(See future issue of ITT for possible levels if safeguard quotas implemented at end of May, and monthly import numbers.)
CITA Announcement on China 301, 340/640, 638/639, and 647/648, dated 05/18/05, available at http://www.ita.doc.gov/media/PressReleases/0505/cita_051805.html
BP Note
CITA also states that three of these product categories, 340/640, 638/639, and 647/648, are also subject to investigations of actual market disruption based on requests filed by industry on April 6 and accepted for consideration by CITA on April 27. CITA states it will continue to accept public comments on these three cases through June 3, 2005. CITA adds that it will decide in due course whether or not to make determinations based on actual market disruption.