NCC Pleased With Administration’s Swift Safeguard Action

The NCC is gratified by the Administration’s swift and decisive action to impose safeguards on certain categories of textile and apparel imports from China.

May 13, 2005
Contact: Marjory Walker
(901) 274-9030

MEMPHIS - The National Cotton Council stated today that it was gratified by the Administration’s swift and decisive action to impose safeguards on certain categories of textile and apparel imports from China under the special China Textile Safeguard Authority contained in the China World Trade Organization (WTO) Accession Agreement.

The special safeguard provisions were designed to assist other countries in adjusting to increased competition in textiles and apparel occasioned by China’s WTO entry. The 1000 percent plus increase in imports in the textile and apparel categories covered by the Administration’s actions demonstrate the capacity of China to dominate world trade in textiles and apparel before adjustments can be made by competitors in developed and developing countries.

“The decision to utilize safeguards is authorized by the agreement, appropriate under the circumstances, and should enable the U.S. textile industry to better adjust to this competition,” NCC President/CEO Mark Lange said. “While the safeguard authority is temporary and is based on current levels of trade, it is an important tool the Administration can use to help improve the trade imbalance that currently exists in textiles and apparel. This action by the Administration provides the U.S. textile industry an opportunity to adjust to the current competitive environment. Furthermore, the Council urges swift action by Congress to approve the Central America Free Trade Agreement, which will further enhance the competitive situation of U.S. textiles and apparel.”