U.S. to Limit Some Textiles From China

The Bush administration said Friday that it would reimpose restrictions on Chinese-made cotton trousers, shirts and underwear, its first move to counter a surge in imports triggered by the Jan. 1 removal of global apparel quotas.

Commerce Secretary Carlos M. Gutierrez said an investigation by the government had found that a steep increase in Chinese imports had hurt U.S. manufacturers. Until the start of this year, a global quota system controlled how much apparel and textiles countries could ship to the United States and Europe.

“Today’s action ... demonstrates this administration’s commitment to leveling the playing field for U.S. industry by enforcing our trade agreements,” Gutierrez said in a statement.

Unhappy importers said Friday that the action was unjustified and would lead to higher prices for U.S. consumers and the loss of jobs for Chinese workers. They said the newly imposed quotas could be filled as early as June or July, forcing importers to find other suppliers for the remainder of the year.

But the U.S. textile industry applauded the government for moving quickly, pointing out that China’s exports to the United States in the three categories totaled $691 million during the first three months of the year. For cotton trousers, that represented a 1,519% increase over the same period the previous year.

“There’s no question, this action will save thousands of jobs,” said Lloyd Wood, a spokesman for the American Manufacturing Trade Action Coalition, the industry trade group that filed the petitions for safeguards.

When it joined the World Trade Organization in 2002, China agreed to allow countries to impose restraints for three years after quotas were lifted if its textile and apparel imports caused a disruption to the domestic market. Under the safeguard provision, the U.S. can restrict Chinese imports to 7.5% above the amount imported the previous 12 months.

In an effort to head off restraints by the U.S. and Europe, the Chinese government has taken steps in recent months to slow its exports, including the imposition of a tax on cheaper apparel products. The European Union is still considering safeguard petitions from its domestic manufacturers.

U.S. importers believe that the Bush administration was responding to pressure from politically influential textile executives. They note that imports of apparel and textiles from China actually decreased in March after an increase in January and February.

Importers contend that it is unfair to blame China for the problems of the domestic textile and apparel industry, which has been losing jobs for decades. But given Friday’s ruling, they predict that the government will move quickly to approve the remaining 16 safeguard petitions, which cover such items as wool trousers and cotton sheets.

“Ultimately, it’s no surprise,” said Brenda Jacobs, an attorney for the U.S. Assn. of Importers of Textiles and Apparel, referring to the government’s ruling.

“One would have liked them to have at least maintained a pretense of legitimate decision making.”

U.S. importers have already begun preparing for the government’s move by shifting production from China to places such as Hong Kong, Taiwan and South Korea. Jacobs said the business wouldn’t be coming back to the United States because the items were too expensive to manufacture here, contrary to claims by the U.S. textile industry.

The Bush administration, which is struggling to win congressional approval for a trade pact with Central America, has been accused of playing politics with its textile policy.

Recently, the National Council of Textile Organizations said it had decided to support the proposed Central American Free Trade Agreement after the administration agreed to step up protections for U.S. textile and apparel manufacturers and get tough on China.

But the Commerce Department has said the China safeguard decisions are being decided solely on the merits of the cases.