I 

108TH CONGRESS 

2D SESSION H. R. 5026

To require the President to take certain actions to enforce the textiles and 

apparel safeguard with respect to imports from the People’s Republic 

of China. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 8, 2004

Mr. LEVIN (for himself, Ms. PELOSI, Mr. HOYER, Mr. RANGEL, Mr. MATSUI, 

Mr. MENENDEZ, Mr. SPRATT, and Mr. CLYBURN) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL

To require the President to take certain actions to enforce 

the textiles and apparel safeguard with respect to imports from the People’s Republic of China.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Textiles and Apparel 

5 China Safeguard Act’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 
2

•HR 5026 IH 

1 (1) Since January 1, 2001, the United States 

2 textiles and apparel industries have lost 345,000 

3 jobs. 

4 (2) Under the terms of the Agreement on Tex5 tiles and Clothing of the World Trade Organization, 

6 on January 1, 2005, the United States will be re7 quired to eliminate all quotas on textiles and apparel 

8 products maintained against other World Trade Or9 ganization members, including the People’s Republic 

10 of China. 

11 (3) Job losses are expected to continue, and to 

12 accelerate after the elimination of United States 

13 quotas, with at least one study estimating that an 

14 additional 630,000 United States jobs in the textiles 

15 and apparel sector will be lost by the end of 2006. 

16 (4) Many analysts believe that the People’s Re17 public of China’s dominance of the United States 

18 textiles and apparel market will grow after the elimi19 nation of quotas, with some studies indicating that 

20 imports from the People’s Republic of China will ac21 count for more than two-thirds of total United 

22 States consumption by 2006. 

23 (5) President Clinton negotiated the right to 

24 use a special textiles and apparel safeguard as an in25 tegral part of the agreement allowing the People’s 
3

•HR 5026 IH 

1 Republic of China to join the World Trade Organi2 zation. The safeguard allows the United States to 

3 impose quotas on exports to the United States of 

4 textiles and apparel products of the People’s Repub5 lic of China if such exports result in or threaten dis6 ruption of the United States market. 

7 (6) The current Administration delayed in ap8 plying the special textiles and apparel safeguard by 

9 failing to implement it for 17 months after the ac10 cession to the World Trade Organization of the Peo11 ple’s Republic of China. During this delay, exports 

12 to the United States of textiles and apparel products 

13 of the People’s Republic of China increased substan14 tially, while significant numbers of United States 

15 textiles and apparel workers lost their jobs. 

16 (7) When the executive branch finally issued 

17 procedures to implement the safeguard on May 21, 

18 2003, those procedures severely restricted the ability 

19 of the United States textiles and apparel industries 

20 and their workers to employ the safeguard in ways 

21 not required by the Accession Agreement of the Peo22 ple’s Republic of China to the World Trade Organi23 zation. 

24 (8) To date, the executive branch has refused to 

25 self-initiate a case under the special textiles and ap-
4

•HR 5026 IH 

1 parel safeguard, notwithstanding the significant in2 crease in exports to the United States of textiles and 

3 apparel products of the People’s Republic of China 

4 and concurrent job losses in the United States in the 

5 textiles and apparel industries. 

6 (9) Large bipartisan groups of Members of the 

7 House of Representatives and Senate urged the 

8 President to support a special session of the World 

9 Trade Organization to discuss the impact that expi10 ration of textiles and apparel quotas will have on 

11 trade and employment in this sector throughout the 

12 world. 

13 (10) Despite studies showing major employment 

14 loss in the United States and disruptions in trade 

15 throughout the world, the President did not support 

16 such a special session at the World Trade Organiza17 tion and has not created a comprehensive plan to 

18 address the expiration of the quota regime. 

19 (11) As part of the Doha Round negotiations of 

20 the World Trade Organization, the President has 

21 proposed to eliminate textiles and apparel tariffs. 

22 SEC. 3. MODIFICATION OF REGULATIONS. 

23 The President shall, upon the enactment of this Act, 

24 modify the procedures for considering requests from the 

25 public for safeguard actions on imports of textiles and ap-
5

•HR 5026 IH 

1 parel products of the People’s Republic of China, as pub2 lished in the Federal Register on May 21, 2003, so that 

3 import relief will be provided, in accordance with the Ac4 cession Agreement of the People’s Republic of China to 

5 the World Trade Organization, if a claim is supported by 

6 data showing that imports of textiles or apparel products 

7 of Chinese origin are, due either to market disruption, or 

8 to the threat of market disruption, threatening to impede 

9 the orderly development of trade in such products, includ10 ing products not produced in the United States if such 

11 products include components of United States origin. 

12 SEC. 4. COMPREHENSIVE AGREEMENT ON TEXTILES AND 

13 APPAREL PRODUCTS. 

14 The President shall, upon the enactment of this Act, 

15 initiate consultations with the People’s Republic of China 

16 for the purpose of reaching an agreement with that coun17 try on the application of quantitative limitations on im18 ports into the United States of all textiles and apparel 

19 products that—

20 (1) are products of the People’s Republic of 

21 China; 

22 (2) as of September 1, 2004, are subject to 

23 quotas under the Agreement on Textiles and Cloth24 ing of the World Trade Organization; and 
6

•HR 5026 IH 

1 (3) meet the requirements for applying safe2 guards on such imports, as modified under section 

3 3. 

4 SEC. 5. IMPOSITION OF QUANTITATIVE LIMITATIONS. 

5 If, within 90 days after consultations under section 

6 4 are initiated, an agreement described in section 4 is not 

7 reached, the President shall impose the quantitative limi8 tations provided for in the Accession Agreement referred 

9 to in section 3 on imports of all textiles and apparel prod10 ucts that were the subject of the consultations.

Æ
2 

•HR 5026 IH 

1 (1) Since January 1, 2001, the United States 

2 textiles and apparel industries have lost 345,000 

3 jobs. 

4 (2) Under the terms of the Agreement on Tex5 tiles and Clothing of the World Trade Organization, 

6 on January 1, 2005, the United States will be re7 quired to eliminate all quotas on textiles and apparel 

8 products maintained against other World Trade Or9 ganization members, including the People’s Republic 

10 of China. 

11 (3) Job losses are expected to continue, and to 

12 accelerate after the elimination of United States 

13 quotas, with at least one study estimating that an 

14 additional 630,000 United States jobs in the textiles 

15 and apparel sector will be lost by the end of 2006. 

16 (4) Many analysts believe that the People’s Re17 public of China’s dominance of the United States 

18 textiles and apparel market will grow after the elimi19 nation of quotas, with some studies indicating that 

20 imports from the People’s Republic of China will ac21 count for more than two-thirds of total United 

22 States consumption by 2006. 

23 (5) President Clinton negotiated the right to 

24 use a special textiles and apparel safeguard as an in25 tegral part of the agreement allowing the People’s 
3 

•HR 5026 IH 

1 Republic of China to join the World Trade Organi2 zation. The safeguard allows the United States to 

3 impose quotas on exports to the United States of 

4 textiles and apparel products of the People’s Repub5 lic of China if such exports result in or threaten dis6 ruption of the United States market. 

7 (6) The current Administration delayed in ap8 plying the special textiles and apparel safeguard by 

9 failing to implement it for 17 months after the ac10 cession to the World Trade Organization of the Peo11 ple’s Republic of China. During this delay, exports 

12 to the United States of textiles and apparel products 

13 of the People’s Republic of China increased substan14 tially, while significant numbers of United States 

15 textiles and apparel workers lost their jobs. 

16 (7) When the executive branch finally issued 

17 procedures to implement the safeguard on May 21, 

18 2003, those procedures severely restricted the ability 

19 of the United States textiles and apparel industries 

20 and their workers to employ the safeguard in ways 

21 not required by the Accession Agreement of the Peo22 ple’s Republic of China to the World Trade Organi23 zation. 

24 (8) To date, the executive branch has refused to 

25 self-initiate a case under the special textiles and ap-
4 

•HR 5026 IH 

1 parel safeguard, notwithstanding the significant in2 crease in exports to the United States of textiles and 

3 apparel products of the People’s Republic of China 

4 and concurrent job losses in the United States in the 

5 textiles and apparel industries. 

6 (9) Large bipartisan groups of Members of the 

7 House of Representatives and Senate urged the 

8 President to support a special session of the World 

9 Trade Organization to discuss the impact that expi10 ration of textiles and apparel quotas will have on 

11 trade and employment in this sector throughout the 

12 world. 

13 (10) Despite studies showing major employment 

14 loss in the United States and disruptions in trade 

15 throughout the world, the President did not support 

16 such a special session at the World Trade Organiza17 tion and has not created a comprehensive plan to 

18 address the expiration of the quota regime. 

19 (11) As part of the Doha Round negotiations of 

20 the World Trade Organization, the President has 

21 proposed to eliminate textiles and apparel tariffs. 

22 SEC. 3. MODIFICATION OF REGULATIONS. 

23 The President shall, upon the enactment of this Act, 

24 modify the procedures for considering requests from the 

25 public for safeguard actions on imports of textiles and ap-
5 

•HR 5026 IH 

1 parel products of the People’s Republic of China, as pub2 lished in the Federal Register on May 21, 2003, so that 

3 import relief will be provided, in accordance with the Ac4 cession Agreement of the People’s Republic of China to 

5 the World Trade Organization, if a claim is supported by 

6 data showing that imports of textiles or apparel products 

7 of Chinese origin are, due either to market disruption, or 

8 to the threat of market disruption, threatening to impede 

9 the orderly development of trade in such products, includ10 ing products not produced in the United States if such 

11 products include components of United States origin. 

12 SEC. 4. COMPREHENSIVE AGREEMENT ON TEXTILES AND 

13 APPAREL PRODUCTS. 

14 The President shall, upon the enactment of this Act, 

15 initiate consultations with the People’s Republic of China 

16 for the purpose of reaching an agreement with that coun17 try on the application of quantitative limitations on im18 ports into the United States of all textiles and apparel 

19 products that— 

20 (1) are products of the People’s Republic of 

21 China; 

22 (2) as of September 1, 2004, are subject to 

23 quotas under the Agreement on Textiles and Cloth24 ing of the World Trade Organization; and 
6 

•HR 5026 IH 

1 (3) meet the requirements for applying safe2 guards on such imports, as modified under section 

3 3. 

4 SEC. 5. IMPOSITION OF QUANTITATIVE LIMITATIONS. 

5 If, within 90 days after consultations under section 

6 4 are initiated, an agreement described in section 4 is not 

7 reached, the President shall impose the quantitative limi8 tations provided for in the Accession Agreement referred 

9 to in section 3 on imports of all textiles and apparel prod10 ucts that were the subject of the consultations. 

Æ