U.S. House of Representatives Calls for USTR

to Adhere to Textile Negotiating Objectives in WTO Talks

Appropriations Committee Mandates Report on Progress of Textile Negotiations

June 29, 2006

For Immediate Release

WASHINGTON, DC - The U.S. House of Representatives today passed H.R. 5672, the Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2007, by a vote of 393 to 23.  The legislation provides appropriations for the Department of Commerce, the Office of the U.S. Trade Representative (USTR), and various other departments and agencies.

The American Manufacturing Trade Action Coalition (AMTAC), the National Council of Textile Organizations (NCTO), and the National Textile Association (NTA), associations representing the U.S. textile industry, praised U.S. Representative Virgil Goode of Virginia for persuading the House to include language reiterating the WTO negotiating objectives given to the U.S. government in the Trade Act of 2002 and for requiring USTR to report on its progress in textile segment of the negotiations.

With regard to USTR, language in Title II of the legislation obligates the office to adhere to the negotiating objectives contained in the Trade Act of 2002:

For necessary expenses of the Office of the United States Trade Representative, including the hire of passenger motor vehicles and the employment of experts and consultants as authorized by 5 U.S.C. 3109, $46,207,000, of which $1,000,000 shall remain available until expended: Provided, That not to exceed $124,000 shall be available for official reception and representation expenses: Provided further, That negotiations shall be conducted within the World Trade Organization consistent with the negotiating objectives contained in the Trade Act of 2002, Public Law 107-210: Provided further, That not less than $2,000,000 provided under this heading shall be for negotiating, implementing, monitoring, and enforcing trade agreements with China.

In House Report 109-520 accompanying the bill, the following textile-specific language was attached:

Textiles- The Committee is aware of concerns about the World Trade Organization negotiations concerning textiles and apparel. The Committee believes such negotiations should be consistent with negotiating objectives contained in the Trade Act of 2002 and directs the USTR to report to the Committee within 60 days of enactment of this Act, regarding adherence to these objectives. Bill language is included regarding this matter.

The trade associations jointly stated, "We are pleased that the House, and the Appropriations Committee in particular, have taken a keen interest in the outcome of the textile portion of the ongoing WTO negotiations.  We look forward to USTR's report on textiles 60 days after this legislation becomes law."

"The language in the bill and report is a clear indication that Congress will conduct thorough oversight of whether USTR is meeting its textile negotiating commitments included in the Trade Act of 2002. It is vital that Congress continue to insist, as it has today, that full reciprocity must be achieved in any final WTO agreement, as reciprocity is the only way to guarantee the U.S. textile industry accrual of any benefits in the negotiations," the associations said.

The principal textile and apparel negotiating objectives handed to the U.S. government in the Trade Act of 2002 are as follows:

(16) TEXTILE NEGOTIATIONS- The principal negotiating objectives of the United States with respect to trade in textiles and apparel articles are to obtain competitive opportunities for United States exports of textiles and apparel in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports in United States markets and to achieve fairer and more open conditions of trade in textiles and apparel. (Emphasis added)

"At this juncture, we strongly believe that USTR cannot meet the objectives contained in the Trade Act of 2002 without a special sectoral for textiles and apparel in the WTO's non-agricultural market access (NAMA) talks.  Absent a sectoral, foreign exporters will receive greater competitive opportunities in the U.S. market than the U.S. textile industry will receive in foreign markets under the general formula of proposed tariff cuts.  Such an outcome then will result in less than full reciprocity, violating the objectives contained in the Trade Act of 2002" the associations continued.

"The U.S. textile industry will continue to work with Congressman Goode and our other friends in Congress to make sure that the U.S. government does not bring back any Doha agreement without first succeeding in meeting with the negotiating objectives included in the Trade Act of 2002," the associations concluded. 

On June 13^th, 44 members of Congress sent USTR Ambassador Susan Schwab a letter demanding that textiles be negotiated in separate sectoral in the Doha Round of trade talks. 

CONTACTS:

AMTAC - Lloyd Wood, Dir. of Media Relations

(202) 452-0866 or lwood@amtac.org

NCTO - Cass Johnson, President

(202) 822-8025 or cjohnson@ncto.org 

NTA - Karl Spilhaus, President

(617) 542-8220 x 1 or kspilhaus@nationaltextile.org

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