## FACT SHEET

**COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS'**

**DECISIONS TO INVOKE SAFEGUARDS ON TWO TEXTILE AND APPAREL PRODUCT
CATEGORIES AND TO EXTEND THE TIME FOR DETERMINATION ON FOUR TEXTILE AND
APPAREL PRODUCT CATEGORIES OF TEXTILE**

**IMPORTS FROM CHINA**

The Committee for the Implementation of Textile Agreements (CITA) today
announced affirmative decisions in two textile safeguard cases.

CITA determined that imports of other synthetic filament fabric
(category 620) and brassieres and other body-supporting garments
(category 349/649) from China are disrupting and threatening to disrupt
the U.S. markets for those products. As a result of these
determinations, CITA has requested consultations with the Government of
China on these products and has put in place quotas that will limit the
growth in imports of the covered products.

CITA also announced that it is extending until October 1, 2005, the
period for making determinations on whether to request consultations
with China regarding imports of cotton and man-made fiber sweaters
(category 345/645/646), cotton and man-made fiber dressing gowns and
robes (category 350/650), men's and boys' wool trousers (category 447),
and knit fabric (category 222).

**Next Steps:** CITA has requested consultations with the Government of
China on the two product categories with a view to easing or avoiding
market disruption and has put in place a quota to limit U.S. imports
from China of these two product categories. The quota levels are 7.5
percent above the amount of imports of these two product categories from
China entered during the first 12 months of the most recent 14 months
preceding the month in which the request for consultations was made. The
quota levels will be prorated to correspond to the number of days left
in the year as of the date of the request for consultations.

Consultations must be held within 30 days of CITA's request for
consultations with the Government of China concerning these two product
categories. The United States will make every effort to reach a mutually
satisfactory agreement with the Government of China to ease or avoid
market disruption in the U.S. market for these two product categories
within 90 days of the request for consultations. In the event a mutually
satisfactory solution cannot be reached by the conclusion of the
consultations period, the quotas will remain in place through the end of
2005.

**Background:** The six product categories described above are subject
to requests for safeguard relief based on the existence of market
disruption or threat of market disruption that were filed by the
domestic textile industry and its workers between November 8, 2004 and
April 6, 2005. Some of the product categories were subject to separate
market disruption and threat-based requests. The public comment periods
on the threat-based requests filed in November and December were
interrupted by an injunction issued by the U.S. Court of International
Trade, but resumed on May 9 after the Court of Appeals for the Federal
Circuit stayed the injunction. The injunction was subsequently
overturned by the Federal Circuit in a decision issued on June 28. The
comment periods on the six cases ended between May 17 and June 3.

The Committee's Procedures state that the Committee will make a
determination within 60 calendar days of the close of the public comment
period as to whether the United States will request consultations with
China.

If the Committee is unable to make a determination within 60 calendar
days, it will cause a notice to be published in the
[Federal]{.underline} [Register]{.underline} that includes the date by
which it will make a determination.

The close of the 60-day determination periods for the six cases at issue
fell between July 18 and August 2. With respect to the proceedings
concerning other synthetic filament fabric and men's and boys' wool
trousers, CITA had previously extended the period for making a
determination until July 31, 2005. On August 1, the Committee announced
its decision to extend the period for making a determination on these
cases in order to consult with our domestic textile and apparel industry
and members of Congress about whether to pursue a broader agreement with
China on imports of Chinese textile and apparel products.

On August 16-17, 2005, the United States commenced negotiations with
China on a broad textile agreement. These negotiations continued on
August 30-31, 2005, and further negotiations will be scheduled in the
near future.

**Requestors**: The American Manufacturing Trade Action Coalition, the
National Council of Textile Organizations, the National Textile
Association, SEAMS, and UNITE HERE filed threat-based requests in
November and December 2004 on other synthetic filament fabric,
brassieres and other body-supporting garments, men's and boys' wool
trousers, cotton and man-made fiber dressing gowns and robes, and knit
fabric. (SEAMS was not a party to the request for safeguard action on
other synthetic filament fabric and knit fabric.) The same
organizations, except SEAMS, filed requests on April 6, 2005, based on
market disruption, on other synthetic filament fabric, brassieres and
other body-supporting garments, cotton and man-made fiber dressing gowns
and robes, and sweaters.

**Data on Product Categories for which CITA Made Affirmative
Determinations:**

**Category 620 Product Description**: The relevant product of Chinese
origin is other synthetic filament fabric (primarily synthetic filament
fabrics of nylon and polyester, other than lightweight polyester
filament fabric), which consists of the following 39 HTSUS subheadings:
5407.10.0090, 5407.20.0000, 5407.30.9000, 5407.41.0030, 5407.41.0060,
5407.42.0030, 5407.42.0060, 5407.43.1000, 5407.43.2030, 5407.43.2060,
5407.44.0030, 5407.44.0060, 5407.51.0060, 5407.52.2060, 5407.53.2060,
5407.54.0060, 5407.61.9915, 5407.61.9935, 5407.61.9955, 5407.61.9975,
5407.69.1060, 5407.69.2060, 5407.69.3000, 5407.69.4060, 5407.69.9060,
5407.71.0015, 5407.71.0060, 5407.72.0015, 5407.72.0060, 5407.73.1000,
5407.73.2015, 5407.73.2060, 5407.74.0015, 5407.74.0060, 5407.91.2010,
5407.92.2010, 5407.93.1500, 5407.93.2010, and 5407.94.2010.

Import Statistics:

+----+---------+---------+---------+--------+---------+------+------+
|    |         |         |         | #      |         | # Pe |      |
|    |         |         |         | Januar |         | rcen |      |
|    |         |         |         | y-June |         | t Ch |      |
|    |         |         |         |        |         | ange |      |
+----+---------+---------+---------+--------+---------+------+------+
|    | *       | *       | **Year  | **     | *       | **   | **Ja |
|    | *2003** | *2004** | -Ending | 2004** | *2005** | 2003 | n-Ju |
|    |         |         | (YE)    |        |         | to   | ne** |
|    |         |         | June    |        |         | YE   |      |
|    |         |         | 2005**  |        |         | June | *    |
|    |         |         |         |        |         | 20   | *200 |
|    |         |         |         |        |         | 05** | 4/20 |
|    |         |         |         |        |         |      | 05** |
+----+---------+---------+---------+--------+---------+------+------+
| ** |         |         |         |        |         |      |      |
| Qu |         |         |         |        |         |      |      |
| an |         |         |         |        |         |      |      |
| ti |         |         |         |        |         |      |      |
| ty |         |         |         |        |         |      |      |
| (  |         |         |         |        |         |      |      |
| Sq |         |         |         |        |         |      |      |
| ua |         |         |         |        |         |      |      |
| re |         |         |         |        |         |      |      |
| M  |         |         |         |        |         |      |      |
| et |         |         |         |        |         |      |      |
| er |         |         |         |        |         |      |      |
| s) |         |         |         |        |         |      |      |
| ** |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+
| W  | 253,    | 284,    | 404,    | 135,9  | 256,    | 5    | 8    |
| or | 206,412 | 028,618 | 126,974 | 21,347 | 019,703 | 9.6% | 8.4% |
| ld |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+
| C  | 4,      | 5,      | 42,     | 3,1    | 39,     | 85   | 1,18 |
| hi | 472,629 | 895,247 | 756,968 | 11,609 | 973,330 | 6.0% | 4.6% |
| na |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+
| *  |         |         |         |        |         |      |      |
| *V |         |         |         |        |         |      |      |
| al |         |         |         |        |         |      |      |
| ue |         |         |         |        |         |      |      |
| (U |         |         |         |        |         |      |      |
| S\ |         |         |         |        |         |      |      |
| $) |         |         |         |        |         |      |      |
| ** |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+
| W  | 239,    | 267,    | 305,    | 134,6  | 172,    | 2    | 2    |
| or | 798,882 | 126,141 | 057,553 | 10,656 | 542,068 | 7.2% | 8.2% |
| ld |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+
| C  | 6,      | 11,     | 29,     | 5,3    | 23,     | 35   | 33   |
| hi | 571,189 | 640,600 | 724,721 | 48,202 | 432,323 | 2.3% | 8.1% |
| na |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+

*Source: Statistics for other synthetic filament fabric imports from the
world and China derived from the Office of Textiles and Apparel, Major
Shippers Report for HTSUS numbers listed above.*

**Category 349/649 Product Description:** The relevant product of
Chinese origin is brassieres and other body supporting garments, which
consists of the following 8 HTSUS subheadings: 6212.10.5010,
6212.10.5020, 6212.10.9010, 6212.10.9020, 6212.20.0010, 6212.20.0020,
6212.30.0010, and 6212.30.0020.

**Import Statistics:**

+----+---------+---------+---------+--------+---------+------+------+
|    |         |         |         | #      |         | # Pe |      |
|    |         |         |         | Januar |         | rcen |      |
|    |         |         |         | y-June |         | t Ch |      |
|    |         |         |         |        |         | ange |      |
+----+---------+---------+---------+--------+---------+------+------+
|    | *       | *       | **Year  | **     | *       | **   | **   |
|    | *2003** | *2004** | -Ending | 2004** | *2005** | 2003 | Jan- |
|    |         |         | (YE)    |        |         | to   | June |
|    |         |         | June    |        |         | YE   | 200  |
|    |         |         | 2005**  |        |         | June | 4/20 |
|    |         |         |         |        |         | 20   | 05** |
|    |         |         |         |        |         | 05** |      |
+----+---------+---------+---------+--------+---------+------+------+
| ** |         |         |         |        |         |      |      |
| Qu |         |         |         |        |         |      |      |
| an |         |         |         |        |         |      |      |
| ti |         |         |         |        |         |      |      |
| ty |         |         |         |        |         |      |      |
| (D |         |         |         |        |         |      |      |
| oz |         |         |         |        |         |      |      |
| en |         |         |         |        |         |      |      |
| s) |         |         |         |        |         |      |      |
| ** |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+
| W  | 44,     | 50,     | 51,     | 24,4   | 25,     | 1    | 5.0% |
| or | 254,424 | 351,814 | 576,640 | 99,359 | 724,185 | 6.5% |      |
| ld |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+
| C  | 16,     | 17,     | 20,     | 8,2    | 11,     | 2    | 3    |
| hi | 056,418 | 734,954 | 642,768 | 32,096 | 139,910 | 8.6% | 5.3% |
| na |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+
| *  |         |         |         |        |         |      |      |
| *V |         |         |         |        |         |      |      |
| al |         |         |         |        |         |      |      |
| ue |         |         |         |        |         |      |      |
| (U |         |         |         |        |         |      |      |
| S\ |         |         |         |        |         |      |      |
| $) |         |         |         |        |         |      |      |
| ** |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+
| W  | 1,529,  | 1,763,  | 1,834,  | 837,5  | 908,    | 2    | 8.5% |
| or | 691,763 | 613,526 | 932,373 | 71,997 | 890,844 | 0.0% |      |
| ld |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+
| C  | 419,    | 446,    | 526,    | 204,1  | 284,    | 2    | 3    |
| hi | 702,078 | 764,523 | 688,290 | 94,422 | 118,189 | 5.5% | 9.1% |
| na |         |         |         |        |         |      |      |
+----+---------+---------+---------+--------+---------+------+------+

Source: Statistics for brassieres and other body supporting garments
imports from the world and China derived from the Office of Textiles and
Apparel, Major Shippers Report for HTSUS numbers listed above.

**\###**