No Comprehensive Textile Agreement Reached

August 31, 2005

For Immediate Release

BEIJING, CHINA -- Reacting to the fact that China and the United States failed to reach a comprehensive textile agreement in a fourth round of talks this week in Beijing, the U.S. textile industry expressed its appreciation to the US government for standing firm on issues of critical importance to domestic manufacturers and their workers.

National Council of Textiles Organization (NCTO) President Cass Johnson said, “We are disappointed that the Chinese government is not yet willing to negotiate seriously to resolve the dispute over textiles.  Over the past month, the industry has withheld filing additional safeguard cases in the hopes that China would come to the table and negotiate an agreement allowing China to grow its exports into the U.S. market while preventing the wholesale loss of U.S. textile jobs.  Because imports from China continue to flood the U.S. market in sensitive categories, the U.S. industry now will be filing additional safeguard petitions shortly.”

Karl Spilhaus, president of the National Textile Association (NTA), also present in Beijing for this round of the negotiations said, “NTA is pleased with our government’s strong stand to resolve the dispute on favorable terms. The domestic U.S. textile industry is united in affirming that no agreement is better than a bad agreement on the critical issue of ongoing textile trade with China.”

American Manufacturing Trade Action Coalition (AMTAC) Executive Director, Auggie Tantillo, continued, “The industry is appreciative of the U.S. government’s effective use of the China textile safeguard mechanism.  We intend to be as aggressive in the future as we have been in the past.   We encourage the U.S. to move forward in implementing the cases with final decisions pending by close of business today (August 31^st).  The proper use of the safeguard is necessary to offset China’s unfair trade practices that have caused substantial job loss in the U.S. textile sector.”

Year to date statistics released by the U.S. government's Office of Textiles and Apparel (OTEXA) show that total U.S. textile and apparel imports by volume from China are up 47 percent in 2005 compared to 2004.  As of June 2005, China holds a 32 percent share of the U.S. textile and apparel import market (up from 23 percent in June 2004), the highest percentage share held by a single country in modern U.S. history.

The U.S. government has safeguards in place on cotton trousers, man-made fiber trousers, cotton shirts, man-made fiber shirts, men's and boys cotton and man-made fiber woven shirts, cotton and man-made fiber underwear, socks, and combed cotton yarn.

Additional safeguard decisions by the U.S. government are due on August 31 on cases covering wool trousers, sweaters, brassieres, dressing gowns, knit fabric and other synthetic filament fabric. 

Finally, the U.S. government also has accepted for review six additional safeguard cases covering curtains, socks, woven blouses, skirts, nightwear and swimwear.  Decisions on these cases are pending this fall.

Delving more deeply into the import surge, year to date U.S. apparel imports by volume through June from China are up 125 percent compared to last year, an increase of more than 1.5 billion square meters equivalent.  This has allowed China to increase its share of the U.S. import market from 13.5 percent in June 2004 to 26.5 percent in June 2005. 

Year to date U.S. textile imports by volume from China through June are up 23 percent compared to last year, an increase of 968 million square meters equivalent.  This has allowed China to increase its share of the U.S. import market from 30.9 percent in June 2004 to 36.1 percent in June 2005.

Since January 2001, U.S. textile and apparel manufacturing employment has fallen from 1,047,200 to 657,800 - a loss of 389,400 jobs (37 percent of total employment in the industry).

CONTACT:

Lloyd Wood, Director of Media Relations, AMTAC

(202) 452-0866 or lwood@amtacdc.org

Missy Branson, Vice President, NCTO

(202) 756-1440 or mbranson@ncto.org

David Trumbull, Director of Membership Services, NTA

(617) 542-8220 x 2 or dtrumbull@nationaltextile.org