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The Two Textile Bill Will Affect The Competitiveness Of China'S Exports To The US.

2011/9/10 9:49:00 39

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Two Textiles Bill China'S Export Competitiveness To The US

Members of the United States Congress reintroduce two bills. If approved, they will impact on textiles and clothing exported to Hongkong and the mainland of China.

Senator Feinstein (Dianne Feinstein) (California Democrat) again proposed the Asia South Pacific Trade in July 28th.

Preferential act

"(S.1443) provides tariff free treatment to imported textiles and clothing from 13 least developed countries. These countries are not beneficiaries of the US trade preferences scheme, including Afghanistan, Bangladesh, Bhutan, Kampuchea, Kiribati, Laos, Maldives, Nepal, the American Samoa islands, the Solomon islands, East Timor, Tuvalu and Vanuatu.

If the S.1443 act is passed, it will provide tariff free treatment to clothing and other products in the above countries from January 1, 2012. These treatments are similar to those received by the beneficiary countries under the African Development and Opportunity Act.

If the bill is passed into a formal law, the trade preferences scheme will reduce the cost of textiles and clothing manufacturers in Bangladesh, Kampuchea and Laos, enhance the competitiveness of products and damage the interests of Chinese producers.

However, the third country cloth clause in the bill will increase the number of Chinese fabrics pported to the 3 countries mentioned above.

Other sources of clothing supply from Bangladesh, Kampuchea and the United States, such as Vietnam, Indonesia, Nicaragua and

The Philippines

Compared with the number and value of garments exported to the United States in China, the number and value of clothing exported to the United States remain the 35.7% largest and 33.7% respectively.

Non tariff treatment will stimulate the demand for a range of products in Bangladesh and Kampuchea, including cotton and synthetic fiber trousers, underwear, pajamas, shirts and women's blouses.

The US textile industry has been opposed to giving preferential treatment to Bangladesh or Kampuchea.

National Council of Textile Organizations warned that preferential tariff treatment would lead to the loss of large numbers of jobs in the least developed and developing countries such as sub Saharan Africa and the Western Hemisphere, and seriously damage the textile industry in the United States.

The National Textile Association believes that China is the main supplier of yarn and cloth in Bangladesh and Kampuchea, and is therefore the biggest beneficiary of the bill.

On the other hand, the Larry Kissell (North Carolina Democrat) and 16 members reintroduced the textiles law enforcement and Safety Act (H.R.2754) in August 1st, granting resources, powers and instructions to the Department of Homeland Security and the Ministry of justice to implement the responsibilities of textiles and clothing in the United States. Kissel

Johnson, chairman of the National Textile Association (Cass), said in August 2nd that he would consult with Senator Hagen (Kay Hagan) (North Carolina Democrat) in the summer recess of Parliament to propose similar legislation in the Senate.

The National Textile Association said its bill would expand the authority of the customs border protection agency and crack down on importers.

Fraudulent conduct

It includes underestimating the value of goods, illegally claiming preferential tariff treatment, illegally pferring goods and establishing phantom companies as counterfeit manufacturers.

The bill was put forward last year and has been controversial in the clothing trade industry of the United States. Some articles are even more redundant and its legitimacy is also questioned.