Contact:  Cass Johnson: 202-822-8025                                                              September 29, 2006

                Missy Branson: 202-822-8026

Government to Self-Initiate Dumping Cases Against Vietnam When Quotas Expire

Dole and Graham Effort Yields Important New Defense Against Dumped Goods

Important Precedent for China After Safeguards Expire

Washington DC) NCTO thanked Senator Elizabeth Dole and Senator Lindsey Graham for securing a  commitment by the government to self-initiate dumping actions against Vietnam once quotas are removed and for securing an important new defense for the industry against unfairly traded imports.  NCTO has requested that the temporary holds on Permanent Normal Trade Relations (PNTR) for Vietnam, which had been put into place by the Senators, be withdrawn.

NCTO President Cass Johnson said, “Senator Dole and Graham stood firm on behalf of their textile workers to make sure that our industry was not left defenseless by Vietnam’s entry into the WTO.  By placing holds, which were able to temporarily block PNTR legislation in the face of near unanimous support in the Congress for Vietnam’s entry, the Senators were able to work with the government to create a new program on dumped apparel products from Vietnam.

“This commitment is important from several perspectives,” Johnson added.  “First, the U.S. government has agreed to self-initiate dumping cases on apparel imports, an action that the U.S. textile industry could not take because of “standing” issues.  As a result, the industry now has a potent line of defense against unfairly traded imports of apparel from Vietnam.” 

“In addition, it is significant that the U.S. government has explicitly recognized that the industry cannot make use of normal trade remedies and, for the first time, has agreed to use its own authority to address this loophole on behalf of the U.S. textile industry. In contrast, the industry was left with no defense at all in the WTO accession agreement the government recently negotiated with Vietnam, but thanks to these Senators and their efforts, the U.S. industry has now secured a new and meaningful defense.”

“The commitment also establishes an important precedent regarding China.  Safeguards against China, another country with a subsidized and government-owned textile sector, expire on January 1, 2009, and this new program by the government may demonstrate that self-initiated dumping cases against China would be a potent weapon against unfairly traded Chinese apparel imports once safeguards are removed.”

“Finally, we are pleased that the industry will be working closely with the government to set up the dumping review effort.  Because of the enormous threat that Vietnam poses, we will monitor this commitment closely to ensure that dumping cases are brought when warranted.”  

Johnson concluded, “The reality was that PNTR for Vietnam would have passed both Congress with strong majorities by the end of the year.  While we do not support PNTR for non-market economies such as Vietnam, we are extremely appreciative that Senators Dole and Graham have been able to use their influence to ensure that the U.S. textile industry now has a meaningful defense against unfairly traded apparel imports from that country.  These Senators are true friends and allies of our industry.”

KEY FACTS ABOUT THE U.S. TEXTILE INDUSTRY

• One of the largest manufacturing employers in the United States, the overall textile sector employs nearly one million workers (973,000).  Textile mills alone employ 416,000 workers.

• Third largest exporter of textile products in the world – more than $16 billion in 2005.  The U.S. textile industry exports to more than 50 countries, with 20 countries buying more than $100 million a year.

• Supplies more than 8,000 different textile products a year to the U.S. military.

• Contributed more than $60 billion to the U.S. GDP in 2004.

• Invested more than $30 billion in new plants and equipment over the last 10 years.

• Textile mills rank near the top of all manufacturing sectors in productivity growth over the past ten years. 

• Textile workers earn an average of 60 percent more than retail workers ($497 a week vs. $301) and get health care and pension benefits.   

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