U.S. Industry Lauds Congressional Call

for Separate WTO Textile Negotiations and Vietnam Safeguard

 

and

 

Praises Congressional Supporters for Drawing Link

Between Action on Those Issues and Future Trade Votes

 

June 13, 2006

For Immediate Release

 

WASHINGTON, DC – Today, forty-four (44) U.S. Representatives wrote U.S. Trade Representative (USTR) Ambassador Susan Schwab and called for (1) separate sectoral negotiations for textiles in the ongoing World Trade Organization (WTO) Doha Round talks, and (2) an adequate textile safeguard as a condition for admitting Vietnam into the WTO.  They also conveyed that failure to address those concerns would “substantially impact” their view of trade legislation from this point forward.

 

“We thank the Members who signed this letter for their strong expression of support for the U.S. textile industry.  In addition, House Textile Caucus Co-Chairs Howard Coble (R-NC) and John Spratt (D-SC) deserve special recognition for their tireless leadership and organizing efforts.  The letter’s two requests are crucial to the long-term health and survival of the U.S. textile industry,” said the major national trade groups representing the U.S. textile industry – the American Manufacturing Trade Action Coalition (AMTAC), National Council of Textile Organizations (NCTO), and National Textile Association (NTA).

 

The latest Doha Round text calls for unbalanced reductions in U.S. industrial tariffs compared to so-called developing countries like China.  The only way to exempt textiles from this proposed commitment is to create a separate negotiating sectoral in the non-agricultural market access (NAMA) portion of the Doha talks.

 

“A textile sectoral is a ‘must-have’ for the U.S. textile industry and the U.S. government must demand one now before they lose the opportunity.   A sectoral is the only realistic way to save the tariffs and safeguards that stand as the last line of defense for the U.S. textile industry and its preferential trade partners in Latin America and Africa against unfair trade practices from non-market economies like China and Vietnam,” said AMTAC, NCTO and NTA.

 

The letter also addresses how Vietnam uses China’s formula of predatory non-market economics, subsidies, and pennies-per-hour labor to steal business away from U.S. companies playing by the rules.  These unfair policies have allowed Vietnam to seize an additional $3 billion in U.S. textile and apparel import market share since 2001.  AMTAC, NCTO, and NTA stated, “The failure to include an adequate textile safeguard in the recently signed WTO accession agreement between the United States and Vietnam is unacceptable.  The U.S. government can and must exercise its power to rectify this job-destroying flaw prior to the finalization of Vietnam’s accession.”

 

Finally, solving the two problems outlined in the Textile Caucus letter are critical because the U.S. textile industry effectively lacks legal standing to use anti-dumping and countervailing duty defenses against dumped and illegally subsidized imports.  For a variety of reasons, producers in the textile supply chain, the bulk of the U.S. textile industry, are precluded from filing anti-dumping suits for all practical purposes.  Moreover, the ability to seek penalty tariffs is also unavailable to the industry because the U.S. Commerce Department has determined that it will not apply countervailing duty law to non-market economies like China and Vietnam.

 

Recognizing this unique handicap, AMTAC, NCTO and NTA concluded, “It is imperative that effective trade remedies be included in both Vietnam's WTO accession agreement and as part of any ultimate Doha Round package.  Absent such action, expect China and Vietnam to keep cheating until they eliminate all other significant U.S. and foreign competition in the U.S. market.”  

 

Since January 2001, employment in the U.S. textile and apparel manufacturing has fallen from 1,047,200 to 617,700.  The loss of 429,500 jobs represents a 41 percent decline. 

 

Signatories on the congressional letter to USTR are listed below by state.  Republicans are in regular font and Democrats are in italic.  The letter’s sponsors are in bold.

 

Robert Aderholt (AL)

Marion Berry (AR)

Sanford Bishop (GA)

Phil Gingrey (GA)

Jim Marshall (GA)

Charlie Norwood (GA)

David Scott (GA)

Lynn Westmoreland (GA)

Hal Rogers (KY)

Ed Whitfield (KY)

Mike Michaud (ME)

Barney Frank (MA)

James McGovern (MA)

Bill Pascrell (NJ)

G.K. Butterfield (NC)

Howard Coble (NC)

Bob Etheridge (NC)

Virginia Foxx (NC)

Robin Hayes (NC)

Walter Jones (NC)

Patrick McHenry (NC)

Mike McIntyre (NC)

Brad Miller (NC)

Sue Myrick (NC)

David Price (NC)

Charles Taylor (NC)

Melvin Watt (NC)

Tim Holden (PA)

James Langevin (RI)

Gresham Barrett (SC)

Henry Brown (SC)

Jim Clyburn (SC)

Bob Inglis (SC)

John Spratt (SC)

Joe Wilson (SC)

Lincoln Davis (TN)

Bart Gordon (TN)

Zach Wamp (TN)

Michael Conaway (TX)

Randy Neugebauer (TX)

Mac Thornberry (TX)

Rick Boucher (VA)

Virgil Goode (VA)

Tom Petri (WI)