December 21, 2004
Press Release
December 21, 2004 Press Release |
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The imposition of new barriers on imported clothing from China that is likely to curtail an expected flood of Chinese imports into the U.S. for the first few months of the next year is welcomed by the Saipan Garment Manufacturers Association (SGMA).
China exceeded quota ceilings on certain types of clothing in 2004, and those same categories of production, currently in Saipan factory sewing lines, will be limited for the first few months of 2005 while the Committee for Implementation of Textile Policy (CITA) considers annual petitioning for safeguard mechanisms to limit exports from China of the same styles of clothing on an annual basis.
Richard A. Pierce, SGMA spokesperson, stated that the association’s Membership welcomes this intervention by the Bush Administration, as do many foreign countries fearful of losing what little production they would have after the 30-year old system restricting international trade in apparel and textiles.
“Literally, this keeps some orders in Saipan that would have been lost had the efforts of groups in Washington D.C. lobbying for blocks on Chinese imports scheduled less than 10 days from now,” Pierce stated.
Although Pierce continued, “The new stay on Chinese production, or the petitions before CITA, for that matter, do not affect our competitiveness, but do give us additional temporary chances at access to the U.S. marketplace. Without a change in our competitiveness, it’ll make no difference a year from now with, or without, limiting apparel entry into the U.S. from China.”
India and others, such as Malaysia and Pakistan, stand to gain the most from temporarily limiting Chinese production.
Pierce said that as early as 10 years ago, at the Uruguay Round of WTO meetings, they had predicted increasing protectionist activity to lessen the effects of global quota elimination upon mainland manufacturers. And, that was before China became a WTO Member 2 years ago when the U.S. agreed with certain stipulations, such as the safeguard mechanism petitioning before CITA, to allow China WTO entry.
Pierce concluded, “These new restrictions placed on Chinese production will give time to CITA to consider the petitions before it which are for categories that we produce here in Saipan. And, those petitions would last one year. With time being the operative, and while the 30-day stay, and the petitions themselves, would certainly help keep more orders here in Saipan factories, the real time we need, which the petitions would allow us, would best be utilized in any attempt to help the factories better compete in the new global order.”
“I know what we’d like to ask Santa for Christmas.”