Bush to impose quotas on China

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The Committee for the Implementation of Textile Agreements (CITA) said it determined that the U.S. market for cotton knit shirts and blouses, cotton trousers and cotton and man-made fiber underwear has been disrupted by Chinese imports and threatens to impede orderly development of trade in the products.

Its solution: Bring back quota controls that constrain the amounts of Chinese-produced goods on the shelves of U.S. retailers.

Commerce Secretary Carlos Gutierrez, who will visit Greenville on Monday, said CITA acted because of "the magnitude of increases in textile imports" from China and its "significant capacity to increase production and exports to the United States in these product categories."

He added that CITA's action "demonstrates this administration's commitment to leveling the playing field for U.S. industry by enforcing our trade agreements."

Cass Johnson, president of the National Council of Textile Organizations, an industry trade group, said the re-imposing of quotas "has saved thousands of textile jobs in this country."

He said that "by expediting its decision-making process and moving quickly to impose safeguards, the U.S. government sent a strong message that it understands the real crisis that these enormous surges present to our workers."

In cotton trousers alone, Chinese exports ran 1,519 percent higher in the first four months this year than in the January through April period in 2004. Certain classes of Chinese textile products came off more than three decades of quota control on Jan. 1.

Auggie Tantillo, executive director of the American Manufacturing Trade Action Coalition, said that "the unprecedented surge of Chinese imports imperiled tens of thousands of jobs, leaving the U.S. government no choice but to act."

U.S. Sen. Jim DeMint, R-S.C., said the government's decision is "good news for the textile industry" and "goes to show that the President's critics were wrong. This administration is committed to enforcing our trade agreements and to providing assistance to our domestic textile and apparel industry."

DeMint said Friday's action "is proof that trade agreements work when they are enforced."

The United States Association of Importers of Textiles and Apparel blasted the administration's decision, saying the government's action would ultimately hurt the consumer.

"To make a decision affecting billions of dollars in business less than four days after a public comment period closes only shows how little regard there is for our business. Clearly, the government did not seriously consider the facts," said USA-ITA executive director Laura E. Jones.

"The only result of this action will be harm to U.S. consumers and to U.S. importers and retailers who are trying to provide Americans with the clothes they want, at the right quality and the right price."

CITA next will request consultations with China, with its aim to avoid further market disruption. If it can't reach a mutually satisfactory agreement, quotas would remain in place.