Ways and Means Chair Asks ITC for a "Textile Monitoring Program" for Chinese Textiles and Apparel

Concern over Possible Import Surge After China's Quotas End on Dec 31st

Rangel has asked for this "textile monitoring program" due to concerns that a market disrupting surge in textile and apparel imports from China could occur when the U.S.-China Memorandum of Understanding Concerning Trade in Textile and Apparel Products expires on December 31, 2008.

Specifics of Requested Textile Monitoring Program

Specifically, Rangel asked the ITC to:

• initiate an investigation to provide the Committee with statistical reports on the volume, value, unit value, and import market share of certain textile and apparel imports from China;
• compile this data for each product covered by the U.S.-China MOU, at both the three-digit textile/apparel category level and at the 10-digit Harmonized Tariff Schedule (HTS) level for each product within each of the three-digit textile/apparel categories;
• provide the Committee with preliminary Customs data once every two weeks and final Census data once a month;
• simultaneously post these reports on its Web site;
• provide a historical compilation of the volume, value, unit value, and import market share of the articles specified above dating from January 1, 2003 to the most recent month available;
• provide the Committee with reports as the preliminary and final data become available;
• publish a compilation of the monthly reports of the final Census data on an annual basis; and
• continue providing these reports until such time that the Committee terminates or amends its request.

ITC is Not Directed to Initiate a Section 421 Investigation At This Time

Rangel notes that the Committee has a clear interest in and a responsibility to examine this issue and take action, if warranted.

However, it is not requesting any analysis of the import data, nor is it directing the ITC to initiate a section 421 investigation¹. The Committee notes that it is simply seeking the statistical data that will allow it to monitor the volume and unit values of textile and apparel imports from China to determine whether a more comprehensive investigation is appropriate.

Two Others Urge Extension of Vietnam's Textile Monitoring Program to China

In a previous action, Representatives Spratt and Coble, co-chairmen of the Congressional Textile Caucus, had urged the President to extend the Textile Monitoring Program currently in place for Vietnam to textile and apparel products from China.

The Commerce Department's Office of Textiles and Apparel currently monitors five sensitive product categories of imports from Vietnam - trousers, shirts, sweaters, underwear, and swimwear. (However, this program is slated to end when the Bush Administration leaves office.)

¹The Committee has the authority, under Section 421(b) of the Trade Act of 1974, to direct an investigation to determine whether imports from China are causing or are threatening to cause market disruption in the U.S., as provided under China's Protocol of Accession to the World Trade Organization.

(See ITT's Online Archives or 09/09/08 news, 08090930, for BP's most recent summary on Vietnam's monitoring data.

See ITT's Online Archives or 05/28/08 news, 08052820, for BP summary on the end of China's textile and apparel quotas on December 31, 2008.)

Committee press release (dated 10/09/08) available at http://waysandmeans.house.gov/News.asp?FormMode=release&ID=705.

Rangel's letter to the ITC (dated 10/09/08) available at http://waysandmeans.house.gov/media/pdf/110/itc.pdf.

Spratt, Coble press release (dated 09/30/08) available at http://www.house.gov/apps/list/press/sc05_spratt/chinese_textiles.html.