COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS' DECISION TO ACCEPT THE REQUEST FOR INVESTIGATION OF
IMPORTS FROM CHINA OF COTTON TERRY AND
OTHER PILE TOWELS (CATEGORY 363)

On Tuesday, November 1, the Committee for the Implementation of Textile Agreements (CITA), which is chaired by the Department of Commerce, decided to consider a request submitted on behalf of a coalition of textile industry associations and a union representing textile and apparel workers for safeguard action limiting imports of cotton terry and other pile towels (category 363).

CITA will now solicit public comments on the request, in particular with regard to whether the U.S. market for cotton terry and other pile towels is disrupted and/or threatened with market disruption, and, if so, the role of Chinese-origin products in that disruption.

Next Steps: CITA will publish shortly a Federal Register notice seeking public comments regarding the request, launching a 30-day period during which interested parties and stakeholders may submit comments on the request. In the past, the Chinese government as well as the textile industry, apparel industry, importers, workers and other interested parties have submitted comments for the record.

CITA will make a determination on this request within 60 calendar days of the close of the public comment period on whether to request consultations with China. [NOTE: CITA has the authority to extend this phase if necessary to complete an investigation, as set forth in its Procedures.] If CITA is unable to make a determination within 60 calendar days, a notice will be published in the Federal Register, including the date by which it will make a determination. If CITA makes a negative determination, this determination and the reasons therefore will be published in the Federal Register.

If CITA makes an affirmative determination that imports of cotton terry and other pile towels from China are disrupting and/or threatening to disrupt the U.S. market for this product, CITA will request consultations with China, with a view to easing or avoiding such market disruption.

As of the date consultations are requested by the United States, a quota will be put in place to limit U.S. imports from China of cotton terry and other pile towels with respect to which CITA has reached an affirmative determination of market disruption and/or threat of market disruption.

Consultations with China will be held within 30 days of China's receipt of the request for consultations, and every effort will be made to reach agreement on a mutually satisfactory solution within 90 days of receipt of the request for consultations.

Requestors: The American Manufacturing Trade Action Coalition, the National Council of Textile Organizations, the National Textile Association, and UNITE HERE filed their request for safeguard action on October 11, 2005.