Impact Of New Us Textile And Apparel Quotas Against China

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Impact of New US Textile and Apparel Quotas Against China
In November 2003 the US Committee for the Implementation of Textile Agreements (CITA) announced that it had decided to impose quotas aimed at restricting imports of five categories of textile and clothing products from China, namely: category 222 (knitted fabrics); categories 350 and 650 (cotton and man-made fibre dressing gowns and bathrobes); and categories 349 and 649 (cotton and man-made fibre brassières). The quotas follow a surge in US imports from China, resulting partly from the elimination of quotas on several product categories when China joined the World Trade Organisation (WTO) in late 2001, and partly from the integration of a number of categories at the beginning of 2002 in accordance with Stage 3 of the Agreement on Textiles and Clothing (ATC). All five product categories had previously been subject to quotas—either in the form of specific limits or as part of group limits. And in all cases, quota restraints had been eliminated under the ATC. The new quotas are unlikely to have much impact on China. The five categories accounted for only ...
... 0.3% of Chinese textile and apparel exports in 2002. The quotas are also unlikely to have much impact on the US textile industry. Limiting import growth from China will not make the US textile industry more competitive against low labour cost countries. Instead, it will provide more market share for other low cost suppliers. Perhaps the most significant impact, however, will be to deter US buyers from sourcing in China. Buyers have already expressed fears that new quotas may be introduced on other, more significant product categories after they have placed orders with Chinese manufacturers.
Table of Contents
Summary
Introduction
The textile safeguard agreement
Characteristics of the new quotas
Response of Chinese organisations
Response of US organisations
Trends in Imports of the Five Product Categories Selected for the Imposition of Quotas
Items selected for the imposition of quotas
Average import prices and China's import share
Importance of the five product categories in total US imports
Importance of the five product categories in Chinese exports
Breakdown of US imports of the five product categories by source
Trends in US imports of the five product categories
Price Curves
Conclusions
List of tables
Table 1: US imports from China of textile and apparel products in five quota categories, 2000-03
List of figures
Figure 1: Shares of US imports of five quota categories from China and from all sources, Jan-Sep 2003
Figure 2: Shares of Chinese exports of five quota categories to the USA and to all destinations, 2002
Figure 3: Shares of US imports of five quota categories by source, Jan-Sep 2003
Figure 4: Trends in US imports of five quota categories from China and from all sources, 2000-Sep 2003
Figure 5: Cumulative US imports of five quota categories: price curves, 2000 and Jan-Sep 2003
Figure 6: Cumulative US imports of category 222: price curves, 2000 and Jan-Sep 2003
Figure 7: Cumulative US imports of category 349: price curves, 2000 and Jan-Sep 2003
Figure 8: Cumulative US imports of category 649: price curves, 2000 and Jan-Sep 2003
Figure 9: Cumulative US imports of category 350: price curves, 2000 and Jan-Sep 2003
Figure 10: Cumulative US imports of category 650: price curves, 2000 and Jan-Sep 2003
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