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NCTO Praised The Government For Investigating Some Textile Subsidies In China

2008/11/4 10:10:00 32

The National Textile Organization Committee (NCTO) appreciated the recent actions taken by the office of the United States trade representative. The office of the United States trade representative will investigate whether some Chinese textile subsidies exceed the scope permitted by WTO.

Last week, Ambassador Schwab sent a letter to China's Minister Chen to launch the challenge. If China does not cancel illegal subsidies, the result of us action may lead to a WTO friction.

NCTO also thanked Senator Elizabeth Dole congressman Robin Hayes, thanking them for putting pressure on the government to accept the case as soon as possible.

NCTO President Cass Johnson said: "Senator Dole and Congressman Hayes's efforts to give this case a precondition for the textile industry sincerely appreciate and appreciate their efforts."

"They are real friends of the textile industry. They speak again and again on behalf of the textile industry to ensure that the textile industry gets a fair deal in Washington," he said.

The US government plans to investigate some of the textile subsidies in China. The reason is that NCTO made a request in September 11, 2007, and listed in detail 73 kinds of subsidies China provided for its textile industry, and asked USTR to check whether these subsidies were in line with the WTO rules.

NCTO himself analyzed the reality. More than 20 kinds of Chinese subsidies seemed to be related to exports, and export subsidies actually violated the WTO rules.

Johnson said, we don't know what subsidies USTR plans to investigate, and many of the subsidies we put forward are huge, with a total of hundreds of millions of dollars.

The cancellation of these subsidies may have a substantial impact on China's ability to export overseas markets artificially.

He said that the actions taken by the US government are of great significance to the establishment of monitoring arrangements for China's textile imports once the special safeguard measures are cancelled in January 1st next year.

It is necessary to establish a monitoring mechanism, because it will become a tool of the US government. If Chinese products pour into the United States in 2009, the government can take the necessary measures.

Last time, special safeguard measures were temporarily cancelled, and China's textile and clothing exports to the US surged by 600%, resulting in tens of thousands of American workers losing their jobs.

Key words on the US textile industry:

The textile industry is one of the largest manufacturing industries in the United States, with over 700000 employees in 2007.

Only 319000 workers are employed in textile mills.

The export of textile products in the United States ranked third in the world and more than $16 billion 500 million in 2006.

In 2007, nearly 2/3 of US textile exports were exported to developing countries.

The U.S. textile industry exports to more than 50 countries, of which 20 countries import more than 100 million dollars a year.

It provides more than 8000 kinds of textile products directly to the US Army every year.

In 2007, US textile delivery amounted to US $68 billion 500 million.

From 2001 to 2006, new factories and equipment invested more than 9 billion US dollars.

In the past 10 years, production capacity has increased by 50%, and capacity growth has ranked second in all industries.

In 2007, the average income of textile workers was 136% higher than that of clothing store employees ($524 per week to $222), while textile workers enjoyed medical insurance and pensions.