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CITA to apply 5% tariff on cotton socks from Honduras
May '08
The U.S. Committee for the Implementation of Textile Agreements (CITA) announced its decision to apply a textile safeguard on U.S. imports of cotton socks from Honduras. Pursuant to the provisions of the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR), the United States will apply a 5 percent tariff to U.S. imports of Honduran socks from July 1 to Dec. 31, 2008. In 2005, the last year before CAFTA-DR went into effect for Honduras, the average duty paid on cotton socks from Honduras was 4.4 percent.

“After an extensive investigation and careful consideration, the United States has decided to apply a safeguard measure on cotton socks from Honduras,” said Commerce Deputy Assistant Secretary of Textiles and Apparel Matt Priest. “I believe that this action will provide U.S. sock manufacturers an opportunity to adjust to increased import competition from our CAFTA-DR partners. The safeguard action expires at the same time as the current quota on Chinese cotton socks.”

“The United States has a long history of co-production with Honduras,” said Priest. “Approximately half of the cotton socks imported from Honduras were knit in the United States, primarily in Alabama and North Carolina, prior to finishing and packaging in Honduras. As our Hemisphere's textile and apparel industries become increasingly integrated, we need to stick together to face growing competition from Asia. That is why we decided that the safeguard on socks from Honduras will end at the same time as the quota on Chinese products.”

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