China now controls half of US apparel market, says AMTAC
27 Jun '06
3 min read
The Doha Round talks are approaching a critical juncture next week as Ministers make another attempt to reconcile differences.
Cass Johnson, President of NCTO, explained: “A key question is whether the WTO will adopt a sectoral or whether it will decide to hand world textile and apparel markets over to China. By adopting a sectoral, the WTO will be sending a message that it will defend textile and apparel jobs worldwide from China's predatory pricing, currency manipulation and vast government subsidies.”
In apparel categories where China remains under quota, China's share has been limited to eight percent of the U.S. market compared to China's 65% share of the U.S. market in those products where quotas have been removed the longest (since 2002). The apparel categories that remain under quota represent about $43 billion in U.S. imports or 60 percent of current U.S. apparel imports.
However, the quotas on China expire at the end of 2008 and cannot be re-imposed. In addition, the U.S. textile industry is prohibited by WTO rules from taking dumping or countervailing duty cases against imports of apparel from China.
Thus a WTO solution on textile needs to include a new safeguard mechanism against China as well as to ensure that trade preferences enjoyed by more than 40 WTO member countries are not eliminated. Both steps can only happen under a textile sectoral in the Doha Round.