FOR IMMEDIATE RELEASE

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Safeguards Offer Reprieve for U.S. Textile Industry

BOSTON, April 7, 2005 -- On Wednesday, April 6, a textile industry coalition of NTA, along with the National Council of Textile Organizations, the American Manufacturing Trade Action Coalition, and the textile workers' union UNITE HERE! filed seven China textile safeguard petitions.

The products covered by these filings are:

  • Trousers of man-made fiber (MMF)
  • Shirts and blouses of MMF
  • Men's cotton or MMF woven shirts
  • Certain synthetic filament fabric
  • Sweaters of cotton and MMF
  • Dressing gowns, etc. of cotton or MMF (renewal of safeguard that expired Dec. 24, 2004)
  • Brassieres of cotton or MMF (renewal) (renewal of safeguard that expired Dec. 24, 2004)

    We are evaluating other products for consideration for further filings.

    The government has up to 15 working days to evaluate whether the petitions have satisfied certain technical requirements for acceptance. We do not anticipate any difficulty getting the petitions accepted. If the government takes the full 15 days, acceptance would take place around April 27. It could be sooner.

    Upon acceptance the government places a notice in the Federal Register and begins the process of public comment and investigation of the merits of the petitions.

    There will be a 30-day public comment period which will run until sometime in mid to late May.

    The government then has 60 days to determine whether to take safeguard actions. They can make the decision in fewer than 60 days. And they may also grant themselves an extension.

    If the government decides impose safeguards, they inform China that the U.S. wants to negotiate a limit on these products and in the meantime, pending the negotiation, an automatic limit goes into effect immediately. That limit is 7.5 percent above the total imports from China of that product in the first 12 months of the most recent 14 months.

    In addition, on April 8, the government published in the Federal Register the official notice that they are self-initiating safeguard procedures with regard to three products:

  • Cotton knit shirts and blouses
  • Cotton trousers
  • Cotton and man-made fiber underwear.

    The deadline for public comments on these three investigations is May 9. The government then has 60 days to make a determination whether to impose safeguards. If they take the full 60 days the safeguards would go into effect around the second week of July.

    When the government imposes safeguard, whether as a result of our petitions or as a result of self-initiation, the limits will be in place until December 31 of this year or until the U.S. and China agree to a mutually satisfactory solution to the problem of market disruption, whichever comes first.

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    NTA, formed in 1854, is the oldest industrial trade association in America. Its 153 members weave and knit fabric in the U.S.; manufacture yarns in the U.S. for the formation of fabrics; and dye, print, and otherwise finish fabrics in the U.S. For more information about NTA, see our website www.nationaltextile.org.