Johannesburg — TEXTILE and clothing bodies from 17 countries, including SA, have urged the US to protect industries and tighten monitoring procedures when its quota limits on Chinese garments and textiles expire next year.
The bodies were concerned export markets could be overrun by cheap Chinese products.
Abisha Tembo, president of the Textile Federation of SA, and Export Council for the Clothing Industry chairman Jack Kipling, were among the signatories of a letter to US trade representative Susan Schwab and the US Senate and House of Representatives last week.
Other signatories include industry bodies in Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Ethiopia, Honduras, Kenya, Lesotho, Madagascar, Mauritius, Mexico, Nicaragua, Peru, Philippines, and the US .
The signatories claim their regions could lose 1-million jobs if Chinese exports go unchecked when US curbs on Chinese imports expire in three months .
The US is an attractive market for developing country exports of apparel and textiles. However, China has gobbled up 60% of the US market share -- up from 13% at the start of the decade -- in product segments where imports are not limited by quotas. Chinese textile and clothing exports to the US have increased almost 400%, from $6,5bn to $32bn, in the period.
When quotas on the products now under safeguard were temporarily lifted in 2005, Chinese manufacturers reduced prices 40%, which lead to a 600% increase in imports.
This triggered the imposition of the safeguards that will expire next year.
Spearheaded by the US-based National Council of Textile Organisations, the trade associations in the 17 countries, sent the letter last week .
"As in 2005, the stakes at risk are enormous for export sectors in Africa, central America, the Middle East the Andean region and Mexico. The safeguards have preserved $37bn worth of trade in exports, and helped keep ... 1-million jobs. In non safeguard areas the story is much different ... where billions of dollars in business have been lost to China and its unfair trade practices," the letter said.
The signatories wanted a textile monitoring programme , that monitors Vietnamese imports , extended to China from next year in a bid to keep Chinese imports in check.
Under the programme, the US government reviewed preliminary import data each month in selected categories.
If evidence of dumping was found, the government initiated a dumping investigation.
The programme, which also ends in January, was put in place after Vietnam -- another non market economy country with a state-run textile sector -- was removed from quotas two years ago. Trade bodies in the signatory countries want the programme prolonged and extended to China.
Motivating the request, the letter said China -- whose clothing and textile industries were already heavily subsidised -- announced last month that it would increase state support by raising the export tax rebate for textiles. It was apparently also planning other subsidy increases for the industry. The letter, citing US government sources, said the Chinese clothing and textile industry already benefited from 63 subsidies, including incentives for marketing, promotion, branding and advanced technology investment.
Many of the subsidies were incompatible with World Trade Organisation rules.

Comments Post a comment