[Federal Register Volume 70, Number 195 (Tuesday, October 11, 2005)]
[Notices]
[Pages 59036-59037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20403]



[[Page 59036]]

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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Solicitation of Public Comments on Request for Textile and 
Apparel Safeguard Action on Imports from China

October 5, 2005.
AGENCY: The Committee for the Implementation of Textile Agreements (the 
Committee).

ACTION: Solicitation of public comments concerning a request for 
safeguard action on imports from China of cotton knit shirts and 
blouses (Category 338/339).

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SUMMARY: On September 14, 2005, the Committee received a request from 
the American Manufacturing Trade Action Coalition, the National Council 
of Textile Organizations, the National Textile Association, SEAMS, and 
UNITE HERE requesting that the Committee reapply a limit on imports 
from China of cotton knit shirts and blouses (Category 338/339). They 
request that a textile and apparel safeguard action, as provided for in 
the Report of the Working Party on the Accession of China to the World 
Trade Organization (the Accession Agreement), be reapplied on imports 
of cotton knit shirts and blouses. The current limit on cotton knit 
shirts and blouses expires on December 31, 2005. The Committee hereby 
solicits public comments on this request, in particular with regard to 
whether imports from China of cotton knit shirts and blouses are, due 
to the threat of market disruption, threatening to impede the orderly 
development of trade in this product. Comments must be submitted by 
November 10, 2005 to the Chairman, Committee for the Implementation of 
Textile Agreements, Room 3001A, United States Department of Commerce, 
14th and Constitution Avenue, N.W., Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Jay Dowling, Office of Textiles and 
Apparel, U.S. Department of Commerce, (202) 482-4058.

SUPPLEMENTARY INFORMATION:

    Authority: Section 204 of the Agriculture Act of 1956, as 
amended; Executive Order11651, as amended.

Background

    The Report of the Working Party on the Accession of China to the 
World Trade Organization (WTO) provides that, if a WTO Member, such as 
the United States, believes that imports of Chinese origin textile and 
apparel products are, ``due to market disruption, threatening to impede 
the orderly development of trade in these products'', it may request 
consultations with China with a view to easing or avoiding the 
disruption. Pursuant to this provision, if the United States requests 
consultations with China, it must, at the time of the request, provide 
China with a detailed factual statement showing (1) the existence or 
threat of market disruption; and (2) the role of products of Chinese 
origin in that disruption. Beginning on the date that it receives such 
a request, China must restrict its shipments to the United States to a 
level no greater than 7.5 percent (6 percent for wool product 
categories) above the amount entered during the first 12 months of the 
most recent 14 months preceding the month in which the request was 
made.
    The Committee has published procedures (the Procedures) it follows 
in considering requests for Accession Agreement textile and apparel 
safeguard actions (68 FR 27787, May 21, 2003; 68 FR 49440, August 18, 
2003), including the information that must be included in such requests 
in order for the Committee to consider them.
    On September 14, 2005, the Committee received a request that an 
Accession Agreement textile and apparel safeguard action be reapplied 
on imports from China of cotton knit shirts and blouses (Category 338/
339). The Committee has determined that this request provides the 
information necessary for the Committee to consider the request in 
light of the considerations set forth in the Procedures. The text of 
the request is available at http://otexa.ita.doc.gov/Safeguard05.htm.
    The Committee is soliciting public comments on this request, in 
particular with regard to whether there is a threat of disruption to 
the U.S. market for cotton knit shirts and blouses and, if so, the role 
of Chinese-origin cotton knit shirts and blouses in that disruption. To 
this end, the Committee seeks relevant information addressing factors 
such as the following, which may be relevant in the particular 
circumstances of this case, involving a product under a quota that will 
be removed on December 31, 2005: (1) Whether cotton knit shirt and 
blouse imports from China are entering, or are expected to enter, the 
United States at prices that are substantially below prices of the like 
or directly competitive U.S. product, and whether those imports are 
likely to have a significant depressing or suppressing effect on 
domestic prices of the like or directly competitive U.S. product, or 
are likely to increase demand for further imports from China; (2) 
Whether exports of Chinese-origin cotton knit shirts and blouses to the 
United States are likely to increase substantially and imminently (due 
to existing unused production capacity, to capacity that can easily be 
shifted from the production of other products to the production of 
cotton knit shirts and blouses, or to an imminent and substantial 
increase in production capacity or investment in production capacity), 
taking into account the availability of other markets to absorb any 
additional exports; (3) Whether Chinese-origin cotton knit shirts and 
blouses that are presently sold in the Chinese market or in third-
country markets will be diverted to the U.S. market in the imminent 
future (for example, due to more favorable pricing in the U.S. market 
or to existing or imminent import restraints into third country 
market); (4) The level and the extent of any recent change in 
inventories of cotton knit shirts and blouses in China or in U.S. 
bonded warehouses; (5) Whether conditions of the domestic industry of 
the like or directly competitive product demonstrate that market 
disruption is likely (as may be evident from any anticipated factory 
closures or decline in investment in the production of cotton knit 
shirts and blouses, and whether actual or anticipated imports of 
Chinese-origin cotton knit shirts and blouses are likely to affect the 
development and production efforts of the U.S. cotton knit shirt and 
blouse industry; and (6) Whether U.S. managers, retailers, purchasers, 
importers or other market participants have recognized Chinese 
producers of cotton knit shirts and blouses as potential suppliers (for 
example, through pre-qualification procedures or framework agreements).
    Comments may be submitted by any interested person. Comments must 
be received no later than November 10, 2005. Interested persons are 
invited to submit ten copies of such comments to the Chairman, 
Committee for the Implementation of Textile Agreements, Room 3001A, 
U.S. Department of Commerce, 14th and Constitution Avenue N.W., 
Washington, DC 20230.
    If a comment alleges that there is no threat of market disruption 
or that the subject imports are not threatening to cause market 
disruption, the Committee will closely review any supporting 
information and documentation, such as information about domestic 
production or prices of like or directly competitive products. 
Particular consideration will be given to comments representing the 
views of actual producers in the United States of a like or directly 
competitive product.

[[Page 59037]]

    The Committee will protect any business confidential information 
that is marked ``business confidential'' from disclosure to the full 
extent permitted by law. To the extent that business confidential 
information is provided, two copies of a non-confidential version must 
also be provided in which business confidential information is 
summarized or, if necessary, deleted. Comments received, with the 
exception of information marked ``business confidential'', will be 
available for inspection between Monday - Friday, 8:30 a.m and 5:30 p.m 
in the Trade Reference and Assistance Center Help Desk, Suite 800M, USA 
Trade Information Center, Ronald Reagan Building, 1300 Pennsylvania 
Avenue, NW, Washington, DC, (202) 482-3433.
    The Committee expects to make a determination within 60 calendar 
days of the close of the comment period as to whether the United States 
will request consultations with China. If, however, the Committee is 
unable to make a determination within 60 calendar days, it will cause 
to be published a notice in the Federal Register, including the date by 
which it will make a determination. If the Committee makes a negative 
determination, it will cause this determination and the reasons 
therefore to be published in the Federal Register. If the Committee 
makes an affirmative determination that imports of Chinese origin 
cotton knit shirts and blouses are, due to the threat of market 
disruption, threatening to impede the orderly development of trade in 
these products, the United States will request consultations with China 
with a view to easing or avoiding the disruption in accordance with the 
Accession Agreement and the Committee's Procedures.

James C. Leonard III,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. 05-20403 Filed 10-6-05; 1:36 pm]
BILLING CODE 3510-DS-S