[Federal Register Volume 70, Number 195 (Tuesday, October 11, 2005)]
[Notices]
[Pages 59034-59035]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20402]


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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 combed cotton yarn (Category 
301).

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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, and UNITE 
HERE requesting that the Committee reapply a limit on imports from 
China of combed cotton yarn (Category 301). 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 combed cotton 
yarn. The current limit on combed cotton yarn expires on December 31, 
2005. The Committee hereby solicits public comments on this request, in 
particular with regard to whether imports from China of combed cotton 
yarn 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.

[[Page 59035]]


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 combed cotton yarn (Category 301). 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 combed cotton yarn and, if so, the role of Chinese-
origin combed cotton yarn 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 combed cotton yarn 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 combed cotton yarn 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 combed cotton yarn, 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 
combed cotton yarn 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 combed cotton yarn 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 combed cotton yarn, and 
whether actual or anticipated imports of Chinese-origin combed cotton 
yarn are likely to affect the development and production efforts of the 
U.S. combed cotton yarn industry; and (6) Whether U.S. managers, 
retailers, purchasers, importers or other market participants have 
recognized Chinese producers of combed cotton yarn 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.
    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 
combed cotton yarn 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. 05-20402 Filed 10-6-05; 1:33 pm]
BILLING CODE 3510-DS-S