IA

107TH CONGRESS

2D SESSION H. J. RES. 105

Calling on the President to take all necessary steps under existing law and

international trade agreements to respond to the serious injury currently

being experienced by the United States textile and apparel industry,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 11, 2002

Mr. COBLE (for himself, Mr. SPRATT, Mr. NORWOOD, Mr. GRAHAM, Mr. TAYLOR of North Carolina, Mr. TAYLOR of Mississippi, Mrs. CLAYTON, Mr.

EVERETT, Mr. WILSON of South Carolina, Mr. HUNTER, Mr. FROST, Mr.

PRICE of North Carolina, Mr. BOUCHER, Mr. KENNEDY of Rhode Island,

Mr. JONES of North Carolina, Mr. MCINTYRE, Mr. HAYES, Mr. THOMPSON of Mississippi, Mr. PALLONE, Mr. GOODE, Mr. SHOWS, Mr. CRAMER,

Mr. COLLINS, Mr. WATT of North Carolina, Mr. DEAL of Georgia, Mr.

MCHUGH, Mr. CLYBURN, Mr. PASCRELL, Mr. DUNCAN, Mr. CLEMENT,

Ms. KAPTUR, Mr. HILLIARD, Mr. ETHERIDGE, Ms. MCKINNEY, Mr.

EVANS, Mr. LEWIS of Georgia, Mr. HILLEARY, Mr. LANGEVIN, Mr.

RILEY, Mr. CHAMBLISS, Mr. PICKERING, and Mr. MCGOVERN) introduced the following joint resolution; which was referred to the Committee

on Ways and Means

JOINT RESOLUTION

Calling on the President to take all necessary steps under

existing law and international trade agreements to respond to the serious injury currently being experienced

by the United States textile and apparel industry, and

for other purposes.

Whereas 964,000 Americans continue to be directly employed

by the United States textile and apparel industry, result-
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ing in nearly $36,000,000,000 in annual compensation to

workers in this sector;

Whereas the United States textile and apparel sector accounted for $48,300,000,000 of the nation’s gross domestic product (GDP) in calendar year 2001;

Whereas according to the Bureau of Labor Statistics, the textile and apparel industry was one of the most productive

in the United States during the decade of the 1990s, experiencing significant productivity growth in practically

all major product sectors;

Whereas the United States textile and apparel industry is a

major employer in many depressed rural areas, as well as

a key provider of jobs in a number of major inner-city

locations, such as New York City, Los Angeles, Chicago,

and Dallas;

Whereas the United States textile and apparel industry is a

critical supplier to the United States Armed Forces, providing a stable domestic supply of vital items such as uniforms, parachutes, chemical and biological protective

gear, and sophisticated carbon fibers necessary for missile and satellite guidance systems;

Whereas surging imports from low-wage foreign suppliers,

along with massive currency devaluations by numerous

major exporting countries, have combined to overwhelm

trade controls established pursuant to international

agreements, resulting in the most severe and prolonged

economic crisis the United States textile and apparel industry has ever faced;

Whereas imports of textile and apparel products into the

United States have increased by 107 percent since 1993
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and totaled 32,800,000,000 square meter equivalents in

calendar year 2001;

Whereas the value of imports of textile and apparel products

into the United States during the 7-calendar year period

ending in 2001 surged by 71 percent, and during that

same period the United States accumulated a

$340,000,000,000 trade deficit in the textile and apparel

sector alone, despite the fact that prices of imported garments have actually been falling;

Whereas exports of textile and apparel products from the

United States are often stymied by prohibitive tariff and

nontariff barriers of many countries, such as the People’s

Republic of China, India, and Brazil, which represent

enormous untapped markets for United States textile and

apparel manufacturers;

Whereas many major textile and apparel exporting countries,

through illegal second-country transshipment, falsification of import documents, and mislabeling of garments,

have benefited from increased shipments to the United

States, valued at billions of dollars, above limits agreed

upon under bilaterally negotiated international agreements;

Whereas the United States textile and apparel workforce has

experienced an unprecedented level of job displacement

affecting hard-working, reasonably paid textile and apparel workers in the United States, with 146,000 jobs

lost in 2001 alone and 675,000 jobs lost during the 7-

calendar year period ending in 2001;

Whereas 488,000 of the textile and apparel jobs lost over

that 7-year period were held by women;
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Whereas the substantial contraction in this industry has undermined an essential source of jobs, as well as critical

health insurance benefits for women and minorities, including immigrants;

Whereas dozens of United States textile and apparel companies have been forced into bankruptcy or liquidation, and

more than 200 plants in the United States in this sector

have permanently closed since 1997;

Whereas although overall consumer prices in the United

States rose 33 percent during the 1990’s, apparel prices

actually fell during that period, so that the United States

textile and apparel sector experienced the first decade of

deflation since the 1930s; and

Whereas many Americans recognize the need to improve the

enforcement of United States trade laws and international agreements to provide an effective response to

the injury that the textile and apparel industry has sustained: Now, therefore, be it

1 Resolved by the Senate and House of Representatives

2 of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This joint resolution may be referred to as the ‘‘Tex5 tile and Apparel Recognition Act’’.

6 SEC. 2. ACTION BY THE PRESIDENT.

7 The Congress calls upon the President—

8 (1) to ensure vigorous enforcement of United

9 States trade laws with respect to trade practices re10 sulting in harm to the United States textile and ap-
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1 parel industry, using all remedies available under

2 those laws;

3 (2) to ensure vigorous enforcement of current

4 international trade agreements with respect to the

5 United States textile and apparel industry, including

6 all existing safeguard remedies available to the

7 United States textile and apparel industry under the

8 World Trade Organization and the North American

9 Free Trade Agreement;

10 (3) to ensure vigorous enforcement of existing

11 quota and tariff regulations to prevent further illegal

12 circumvention of the United States textile import re13 straint program;

14 (4) to deny requests from trading partners of

15 the United States for unilateral liberalization by the

16 United States of its textile and apparel market other

17 than that provided for under existing international

18 trade agreements; and

19 (5) to implement strategies to open foreign

20 markets so as to provide equitable access for goods

21 exported by the United States textile and apparel in22 dustry.

23 SEC. 3. REPORTS TO CONGRESS.

24 The President shall—
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1 (1) not later than 90 days after the date of en2 actment of this joint resolution, and

3 (2) not later than 1 year after such date of en4 actment,

5 report to the Congress on actions taken to carry out para6 graphs (1) through (5) of section 2, and on the results

7 of those actions.

8 SEC. 4. CURRENCY DEVALUATIONS.

9 (a) REPORT TO CONGRESS.—Not later than 1 year

10 after the date of enactment of this joint resolution, and

11 not later than the end of each 1-year period thereafter,

12 the President shall report to the Congress on the ability

13 of the United States textile manufacturing sector to com14 pete with the textile industry in other countries when for15 eign currencies are devalued.

16 (b) FUTURE NEGOTIATIONS.—The President, in con17 ducting negotiations to enter into trade agreements with

18 other countries, shall take into account potential foreign

19 currency devaluations so that such countries do not receive

20 the benefit of reduced tariffs while at the same time mak21 ing their exports more cost-competitive on the inter22 national market through such currency devaluations.

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