Reacting to the fact that China and the United States failed to reach a comprehensive textile agreement in a fourth round of talks this week in Beijing, the textile industry expressed its appreciation to the US government for standing firm on issues of critical importance to domestic manufacturers and their workers.

National Council of Textiles Organization (NCTO) President Cass Johnson said, "We are disappointed that the Chinese government is not yet willing to negotiate seriously to resolve the dispute over textiles. Over the past month, the industry has withheld filing additional safeguard cases in the hopes that China would come to the table and negotiate an agreement allowing China to grow its exports into the US market while preventing the wholesale loss of US textile jobs. Because imports from China continue to flood the US market in sensitive categories, the U.S. industry now will be filing additional safeguard petitions shortly."

Karl Spilhaus, president of the National Textile Association (NTA), also present in Beijing for this round of the negotiations said, "NTA is pleased with our government''s strong stand to resolve the dispute on favorable terms. The domestic US textile industry is united in affirming that no agreement is better than a bad agreement on the critical issue of ongoing textile trade with China."

American Manufacturing Trade Action Coalition (AMTAC) Executive Director, Auggie Tantillo, continued, "The industry is appreciative of the US government''s effective use of the China textile safeguard mechanism. We intend to be as aggressive in the future as we have been in the past. We encourage the US to move forward in implementing the cases with final decisions pending by close of business today (August 31st). The proper use of the safeguard is necessary to offset China''s unfair trade practices that have caused substantial job loss in the US textile sector."

Year to date statistics released by the US government''s Office of Textiles and Apparel (OTEXA) show that total U.S. textile and apparel imports by volume from China are up 47 percent in 2005 compared to 2004. As of June 2005, China holds a 32 percent share of the US textile and apparel import market (up from 23 percent in June 2004), the highest percentage share held by a single country in modern US history.

The U.S. government has safeguards in place on cotton trousers, man-made fiber trousers, cotton shirts, man-made fiber shirts, men''s and boys cotton and man-made fiber woven shirts, cotton and man-made fiber underwear, socks, and combed cotton yarn.

Additional safeguard decisions by the US government are due on August 31 on cases covering wool trousers, sweaters, brassieres, dressing gowns, knit fabric and other synthetic filament fabric.

Finally, the US government also has accepted for review six additional safeguard cases covering curtains, socks, woven blouses, skirts, nightwear and swimwear. Decisions on these cases are pending this fall.

Delving more deeply into the import surge, year to date US apparel imports by volume through June from China are up 125 percent compared to last year, an increase of more than 1.5 billion square meters equivalent. This has allowed China to increase its share of the US import market from 13.5 percent in June 2004 to 26.5 percent in June 2005.

Year to date US textile imports byvolume from China through June are up 23 percent compared to last year, an increase of 968 million square meters equivalent. This has allowed China to increase its share of the US import market from 30.9 percent in June 2004 to 36.1 percent in June 2005.

Since January 2001, US textile and apparel manufacturing employment has fallen from 1,047,200 to 657,800 - a loss of 389,400 jobs (37 percent of total employment in the industry).

The National Council of Textile Organizations is a unique association representing the entire spectrum of the textile sector. From fibers to finished products, from machinery manufacturers to power suppliers, NCTO is the voice of the US textile industry.

The American Manufacturing Trade Action Coalition’s (AMTAC) mission is to preserve and create American manufacturing jobs through the establishment of trade policy and other measures necessary for the U.S. manufacturing sector to stabilize and grow.
 
National Council of Textiles Organization