The Open Letter to CITA by China Home Textile

The Open Letter to CITA by China Home Textile Association

-The Response to the Suit Filed by the Textile Organizations in USA Requiring Trade Restriction towards Chinese Curtains

In recent, a batch of American textile industrial organizations including NCTO, AMTAC,NTA and Unite Here applied to CITA requiring to take safeguard measures towards Chinese imported cotton and chemical fiber curtains within 369/666 category. China Home Textile Association, as the nationwide organization of Chinese home textile industry, was shocked by the news and fiercely protested hereon.

The following two tables show that the export growth rate of Chinese curtains is decreasing year by year since the quota was abolished in 2002.

Table 1 is the Chinese export of curtains in the period from 2002 to Apr 2005 according to the custom statistics.

Year	Unit	Export Quantity	Export Value	Unit Price on Average	Comparing with the previous year in term of quantity	Comparing with the previous year in term of value
2002	piece	127433631	361823511	2.84	84.7	67.89
2003	piece	233897877	651493937	2.79	83.54	80.06
2004	piece	305450835	911564664	2.98	30.62	39.94
Jan-Apr2005	piece	118628065	359075271	3.03	24.49	28.76

Table 2 is the Chinese export of curtains to USA from 2002 to Apr 2005 according to the statistics from the custom.

Year	Unit	Export Quantity	Export Value	Unit Price on Average	Comparing with the previous year in term of quantity	Comparing with the previous year in term of value
2002	piece	60969978	173800323	2.85	180.67	143.28
2003	piece	109730844	328810433	3.00	79.98	89.19
2004	piece	145550857	439753360	3.02	32.69	33.73
Jan-Apr2005	piece	59162593	183457595	3.10	30.05	31.54

From the above two tables, we can see that the export growth to US was a bit higher than that to the whole world and there showed no sign of export surge. The unit export price to US was also a little higher than that to the whole world and kept ascending. However, the growth rate of Chinese export to US was decreased notably over past years, manifesting that the growth of Chinese export has been stabilized after the first couple years of quota removal when the export had increased rationally.

According to American custom statistics, the export unit price of Chinese curtains almost levels that of the other exporting country from 2002 to 2004.

Recently, in respond to the global trend of manufacturing transfer, many US curtain manufacturers moved their production overseas. The withering of the curtain manufacturing industry in US is the consequence of the industrial relocation. Some US curtain enterprises are conducting cooperation with Chinese enterprises to set up manufacturing mills or processing sites.

If US took safeguard measures toward Chinese curtains, the first to be injured would be American importers, customers and JVs in China. And it would also greatly impair Chinese curtain industry since it抯 estimated there are 1million laborers involving in the curtain manufacturing industry in China, the safeguard measures would directly trigger the large-scale unemployment.

China Home Textile Association attaches a great concern to the matter and hopes that CITA can consider the application prudently. CHTA is willing very much to have direct dialogues with American industrial organizations concerned to solve the matter and other bilateral trade issues within the home textile industry through friendly and full negotiations.

China Home Textile Association