Three Major Obstacles To Textile Exports To The US

According to the Sino US bilateral agreement, by December 31, 2008, the US limit on the number of Chinese textiles was officially over.

It is generally estimated that the possibility of US textile restrictions next year will be minimal. However, the domestic textile industry, especially the NCTO, the government and Congress of the National Textile Organization of the United States, will take relevant measures to prevent Chinese textiles from pouring into the United States after 2008.

On the basis of the analysis, the mainland's exports to the US will face three major obstacles:

I. countervailing

Since the US Department of Commerce launched a countervailing case against China in 2006, a number of similar cases have been put forward. Finally, the US government ruled that the countervailing rate of Chinese products ranged from 7% to 61.5%.

So far, there is no countervailing case specifically for textile and clothing products, but the National Textile Organization has said that the US apparel industry is enthusiastic about launching the case and has studied a number of related projects.

Congress also has indications that it will support countervailing cases against China.

Two, anti-dumping

In January 2007, the United States launched the import monitoring plan for the 5 major categories of clothing products in Vietnam, ending in January 19, 2009.

If there is any abnormal growth in the US Department of Commerce, the anti-dumping investigation can be carried out autonomously.

At present, due to lack of sufficient evidence, the United States will not carry out anti-dumping investigations against Vietnam, but the US textile industry and government regard this measure as a preview of the corresponding measures for China's textile and clothing products. The focus of monitoring in China will focus on the current restriction categories, especially socks.

The US Congress is also actively promoting this.

Clauses three and 421

The 421 section is the domestic legislation of the United States according to the sixteenth article of the WTO entry into China.

It allows the US government to launch special safeguards against Chinese products for a maximum period of 5 years.

Although the Bush administration explicitly refused to use the 421 clause, the US textile industry did not give up hope, because the next US president may take different approaches.

At present, the US Congress has already proposed a proposal to restrict the president to exercise veto power on the 421 clause and make it easier to implement countervailing and anti-dumping cases against China.

In the face of many obstacles to the US's textile arrangement in China, it is suggested that textile and garment enterprises should pay close attention to the trend of textile trade between China and the United States, maintain close ties with importers and brands, and make corresponding preparations in advance, such as standardizing the production and operation system and arranging related financial account statements.