CHINA TEXTILE/APPAREL QUOTAS SCHEDULED TO EXPIRE DECEMBER 31, 2008

According to The Committee for the Implementation of Textile Agreements (CITA) sources, the quotas imposed on certain China-origin textile and apparel good, pursuant to the U.S.-China Textile Agreement, will end on December 31, 2008. Any over-shipments that are exported in 2008 are likely to be subject to staged entry in 2009.

The China “product-specific safeguard”, which may be used by WTO member countries for any Chinese-origin products, including textiles and apparel, will remain in place until December 11, 2013. This safeguard allows members to withdraw concessions granted to China or to limit imports from China when those products threaten market disruption. Antidumping and countervailing duties can be applied to imports from China. Certain areas of the textile industry may not be able to avail themselves of these import relief measures if what they manufacture is not “like or directly competitive to” the imported Chinese product.