USA: Textile & apparel imports surge from China unabated in June - AMTAC

Import data released by the US government showed that US textile and apparel imports from China continue to surge. Year to date, total US textile and apparel imports by volume from China are up 47 percent in 2005 compared to 2004. As of June 2005, China holds a 32 percent share of the U.S. textile and apparel import market (up from 23 percent in June 2004), the highest percentage share held by a single country in modern US history.

"The trade data released by the US government today demonstrates that the job-killing import surge from China continues unabated. The US government needs to negotiate an effective comprehensive agreement to limit US textile and apparel imports from China to stop the job losses," said American Manufacturing Trade Action Coalition Executive Director Auggie Tantillo.

"An effective comprehensive agreement for the US textile industry would cover all categories where safeguard petitions have been filed or approved. It should also include any categories that are disrupted or that are facing imminent disruption where safeguards have not yet been filed," continued Tantillo.

"In addition, a fair deal would limit the growth of Chinese imports to very close to 7.5 percent and should last through the end of 2008. It would include no promises not to extend the safeguard during current the Doha Round of WTO negotiations. And last but not least, it would include fair and tough penalties applied to Chinese quota limits and offending companies on imports from China that were illegally transshipped," concluded Tantillo.

The US government has safeguards in place on cotton trousers, man-made fiber trousers, cotton shirts, man-made fiber shirts, men''s and boys cotton and man-made fiber woven shirts, cotton and man-made fiber underwear, socks, and combed cotton yarn.

Safeguard decisions by the US government are due on cases covering wool trousers, sweaters, brassieres, dressing gowns, knit fabric and other synthetic filament fabric on August 31.

The US government also has accepted for review six additional safeguard cases covering curtains, socks, woven blouses, skirts, nightwear and swimwear. Decisions on these cases are pending this fall.

Delving more deeply into the import surge, year to date US apparel imports by volume through June from China are up 125 percent compared to last year, an increase of more than 1.5 billion square meters equivalent. This has allowed China to increase its share of the U.S. import market from 13.5 percent in June 2004 to 26.5 percent in June 2005.

While U.S. imports of apparel from China are up 125 by volume year to date, they are up only 97 percent by value. The year-to-date value of U.S. apparel imports from China through June rose from $3.76 billion in 2004 to $7.40 billion in 2005.

Moreover, in sensitive apparel categories some of the price decreases are astounding. Consider cotton trousers. Year to date through June 2004, the United States imported 11,240,616 pair of cotton trousers from China at a cost of $118,490,000. The average price was $10.54 per pair. Year to date through 2005, however, the United States imported 209,604,072 pair of cotton trousers from China at a cost of $1,016,431,000. The average price fell to $4.85 - a price decrease of 54 percent!

Compare cotton trouser imports from China to US cotton trouser imports from the rest of the world. Year to date through June 2004, the United States imported 923,249,100 pair of cotton trousers at a cost of $5,428,048,000. The average price was $5.88 per pair. Year to date through 2005, the United States imported 914,636,784 pair of cotton trousers at a cost of $5,410,249,000. The average price was $5.92 per pair -- a price increase of 0.7 percent. Thus, while the price of cotton trousers from the rest of the world increased 0.7 percent, those imported from China decreased 54 percent.

"When China can drop its price on cotton trousers by 54 percent while the price from the rest of the world increased 0.7 percent, something is wrong. Clearly, China is using unfair trade practices like direct subsidies, currency manipulation, export tax rebates to artificially lower its prices in an effort to monopolize the US apparel market. This must be stopped," said Tantillo.

Year to date US textile imports by volume from China through June are up 23 percent compared to last year, an increase of 968 million square meters equivalent. This has allowed China to increase its share of the US import market from 30.9 percent in June 2004 to 36.1 percent in June 2005.

Since January 2001, US textile and apparel manufacturing employment has fallen from 1,047,200 to 657,800 - a loss of 389,400 jobs (37 percent of total employment in the industry).

“The American Manufacturing Trade Action Coalition’s (AMTAC) mission is to preserve and create American manufacturing jobs through the establishment of trade policy and other measures necessary for the U.S. manufacturing sector to stabilize and grow.”