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March/April 2014 March/April 2014

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ATMI Calls For New Quotas On Surging Chinese Imports

Washington, DC -- Citing a record 119% increase in textile imports from China during the first six months of 2002, the American Textile Manufacturers Institute (ATMI) is petitioning the Committee for the Implementation of Textile Agreements (CITA) to impose special textile quotas on the following products: knit fabric, gloves, dressing gowns, brassieres and textile luggage. (Note: CITA is the interagency committee which administers the United States textile/apparel import control program.)<BR><BR>ATMI is also asking CITA to prepare a case for the possible imposition of a quota against imports of textured filament yarn from China in the event that imports of that product continue to rise. The ATMI request covers categories for which ATMI member companies make the products or the components that go into the products. <BR><BR>ATMI is urging such action under the provisions of the China WTO accession agreement, which allows countries to impose textile-specific q

Washington, DC -- Citing a record 119% increase in textile imports from China during the first six months of 2002, the American Textile Manufacturers Institute (ATMI) is petitioning the Committee for the Implementation of Textile Agreements (CITA) to impose special textile quotas on the following products: knit fabric, gloves, dressing gowns, brassieres and textile luggage. (Note: CITA is the interagency committee which administers the United States textile/apparel import control program.)ATMI is also asking CITA to prepare a case for the possible imposition of a quota against imports of textured filament yarn from China in the event that imports of that product continue to rise. The ATMI request covers categories for which ATMI member companies make the products or the components that go into the products. ATMI is urging such action under the provisions of the China WTO accession agreement, which allows countries to impose textile-specific quotas in the event that Chinese exports cause or threaten to cause market disruption. The use of the temporary quota is allowed until December 31, 2008 only for products that have already been removed from quota-control under the terms of the WTO Agreement on Textiles and Clothing.An ATMI analysis of trade figures shows that imports of Chinese textile products are currently experiencing their largest surge in history. ATMI notes that the textile safeguard provision was specifically included in the China WTO accession agreement to restrain such surges. Last year, under extraordinary pressure from currency-devalued imports from China and other Asian countries, the U.S. textile industry closed 116 textile mills and lost 67,000 jobs.During the first six months of the year, Chinese exports of textile and apparel products to the United States increased by almost 900 million square meters, with the textile portion increasing by more than 700 million square meters. On the strength of this increase, China surpassed both Pakistan and Canada to become the second largest textile and apparel exporter to the United States, shipping 1.9 billion square meters during the first six months of the year. China accounted for 60 percent of the increase in world-wide imports of textile and apparel products during the first half of the year.The Chinese increase has come mostly in categories from which quotas were removed on January 1, 2002. In almost every case, these increases have gone hand in hand with double-digit price declines for imported Chinese goods. In terms of individual categories, these stand out:1) Knit fabric Chinese knit fabric exports rose 22 thousand percent and the average price of Chinese knit fabric dropped by 60 percent, catapulting China from being the 26th largest supplier of such exports to the U.S. to the 5th place among all foreign suppliers;2) Gloves Chinas exports of gloves to the United States tripled over the last six months, with the result that Chinese exports are now twice as large as those from the next largest supplier;3) Nightwear/Dressing Gowns Chinese exports of nightwear more than quadrupled, vaulting China from seventh to first place among supplying countries. The Chinese surge was accompanied by a 47% drop in Chinese prices;4) Brassieres In less than six months, China leapfrogged the top two long-standing largest suppliers Mexico and the Dominican Republic as Chinas price per dozen dropped to $29, by far the lowest of any major supplier;5) Luggage Chinese exports of textile luggage have quadrupled to 71 million kilograms while imports from every other supplier have simultaneously dropped, some by as much as 60 percent. Chinese prices fell by 62% during the same period of time. China now ships more than five times as much as the next largest supplier;6) Textured filament yarn Chinese exports have only recently begun to surge and remain relatively small. However, over the past two months, Chinese exports increased at a rate of 400,000 kilograms a month. In its request to CITA, ATMI stressed that "it is now time for CITA to act expeditiously in restraining the import surges already occurring in order to prevent further damage to an already beleaguered U.S. domestic sector." ATMI also noted that the Chinese surge "further damage an industry that in 2001 suffered its worst year since the Great Depression."




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