[Federal Register Volume 73, Number 17 (Friday, January 25, 2008)]
[Notices]
[Pages 4542-4543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 08-290]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Written Notice to the Government of Honduras of Intent To Apply a 
Textile Safeguard Measure on Imports from Honduras of Cotton Socks

January 18, 2008.
AGENCY: The Committee for the Implementation of Textile Agreements 
(``the Committee'').

ACTION: Notice.

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SUMMARY: The Committee is submitting written notice to the Government 
of Honduras with respect to its intent to apply a textile safeguard 
measure on imports of Honduran origin cotton socks (Category 332).

[[Page 4543]]


FOR FURTHER INFORMATION CONTACT: Sergio Botero, Office of Textiles and 
Apparel, U.S. Department of Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION: Authority: Title III, Subtitle B, Section 
321 through Section 328 of the Dominican Republic-Central America-
United States Free Trade Agreement (``CAFTA-DR'' or the ``Agreement'') 
Implementation Act; Article 3.23 of the Dominican Republic-Central 
America-United States Free Trade Agreement.

Notice

    On January 18, 2007, as provided for under Article 3.23 of the 
Dominican Republic-Central America-United States Free Trade Agreement, 
the United States submitted written notice to the Government of 
Honduras with respect to its intent to apply a textile safeguard 
measure on imports of Honduran origin cotton socks (Category 332).

Background

    On August 21, 2007, the Committee initiated a safeguard proceeding 
to determine whether imports of Honduran cotton, wool, and man-made 
fiber socks (merged Category 332/432 and 632 part) are causing serious 
damage, or actual threat thereof, to the U.S. industry producing socks, 
(72 FR 46611, August 21, 2007). The initiation of the safeguard 
proceeding launched a 30-day period during which interested parties and 
stakeholders submitted comments. In accordance with section 4 of the 
Committee's Procedures for considering action under the CAFTA-DR 
textile and apparel safeguard, (71 FR 25157, April 28, 2006), the 
Committee has determined that it intends to apply a textile safeguard 
measure with respect to imports of Honduran origin cotton socks 
(Category 332). This determination is based on the comments received 
and information available to the Committee that demonstrates that 
safeguard measures are warranted with respect to Honduran origin cotton 
socks falling within Category 332, which represent approximately 99% of 
the imports subject to this safeguard inquiry. The Committee notes that 
it is not at this time making a determination to apply a safeguard 
measure with respect to wool and man-made fiber socks (Categories 432 
and 632 Part, respectively), that were part of this original safeguards 
inquiry.
    Article 3.23(4) of the Agreement provides that, following receipt 
of written notice by an importing Party of intent to apply a safeguard 
measure, the exporting Party may request consultations. Article 3.23(4) 
further provides that, upon receipt of a request for consultations, the 
United States and the Government of Honduras shall begin consultations 
without delay and shall be completed within 60 days of the date of the 
request for consultations. The United States shall make a decision on 
whether to apply a safeguard measure within 30 days of completion of 
the consultations.
    If the United States decides in the affirmative, the United States 
would increase the duty on all Honduran origin cotton socks within 
Category 332 (including those knit in the United States) to a level 
that does not exceed the lesser of: (a) The prevailing U.S. normal 
trade relations (NTR)/most-favored-nation (MFN) duty rate for the 
article at the time the measure is applied; or (b) the U.S. NTR/MFN 
applied duty rate in effect on the date of entry into force of the 
CAFTA-DR, currently 13.5% for most socks imported from Honduras. The 
Committee is further considering the appropriate safeguard tariff rate 
that would be applied to imported cotton socks from Honduras.
    Article 3.23 of the Agreement provides that, no Party may maintain 
a textile safeguard measure for a period exceeding three years. In this 
case, the Committee has further determined that, if at the conclusion 
of the consultation period, the United States decides in the 
affirmative, the United States would apply a safeguard measure on 
imports of Honduran origin cotton socks (Category 332) until December 
31, 2008, to coincide with the expiring limits on cotton sock imports 
from China.
    In the event that safeguard measures are applied by the United 
States, the United States would have to provide mutually agreed and 
substantially equivalent compensation in textile and apparel products 
to Honduras. If the United States and Honduras are unable to agree on 
compensation within 30 days of the application of a textile safeguard 
measure, Honduras may take tariff action of a substantially equivalent 
trade effect.

R. Matthew Priest,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. 08-290 Filed 1-18-08; 4:53 pm]
BILLING CODE 3510-DS-P