New curbs on China apparel exports to US welcomed

The Saipan Garment Manufacturers Association welcomed the imposition of new barriers on imported clothing from China as these are likely to curtail the expected flood of Chinese imports into the U.S. for the first few months of the next year.

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 considers annual petitioning for safeguard mechanisms to limit exports from China of the same styles of clothing on an annual basis.

SGMA spokesperson Richard A. Pierce said 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 is lifted effective Jan. 1, 2005.

“Literally, this keeps some orders in Saipan that would have been lost if the efforts of groups in Washington D.C. lobbying for blocks on Chinese imports scheduled less than 10 days from now had failed,” Pierce stated.

Pierce pointed out, though, that the new stay on Chinese production or the petitions before CITA does not affect Saipan’s 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 the World Trade Organization 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 two years ago when the U.S. agreed to certain stipulations, such as the safeguard mechanism petitioning before CITA, to allow China WTO entry.

“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,” said Pierce. “I know what we’d like to ask Santa for Christmas.”