November 30, 2000

Kenya Will Be First Country Certified for AGOA Benefits

Speaking to a gathering of U.S. importers on November 29, 2000, Assistant U.S. Trade Representative for Africa, Rosa Whitaker, announced that Kenya has satisfied the requirement under the Trade and Development Act for an "effective" visa system and will shortly be officially certified to take full advantage of the apparel benefits of the Africa Growth and Opportunity Act (AGOA).  The visa arrangement was approved on November 7, 2000.  The duty-free, quota-free benefits for qualifying apparel are expected to be retroactive to November 7.  In addition,  the existing quotas on products from Kenya should be dropped within 30 days of the adoption of the visa system.  Currently, the U.S. maintains quota restrictions on Men's & Boys' Cotton and Man-made Fiber Woven Shirts, Category 340/640, and on Cotton Pillowcases, Category 360.

Kenya will be the first Sub-Saharan African nation certified as fully eligible under the terms of the Trade and Development Act.  All together, the U.S. announced that thirty-four of the forty-eight potential beneficiaries have met the eligibility requirements of the Trade and Development Act.  Each country, however, must also be certified as having an "effective" visa system.  Mauritius, Madagascar, South Africa and Malawi are also working to establish "effective" visa systems, and are expected to be certified before the end of the year.

In addition, the announcement of which additional Sub-Saharan African products will qualify for the Generalized System of Preferences (GSP) program is likely to be made soon.  Of the 1,900-odd products under consideration for expanded GSP treatment, nearly all are expected to be designated as eligible.

November 30, 2000

Customs Acts to Ban Clothing Imports from Mongolian Factory

The U.S. Customs Service issued a detention order against clothing manufactured by the Dong Fang factory in Mongolia after finding that the company uses forced child labor.  The order applies to approximately $1.5 million in imports of men's and women's apparel, made by the Chinese-owned factory.  Nearly all of the factory's production is intended for the U.S. market.  Under Customs regulations, detention orders may be issued if Customs has information that "reasonably but not conclusively" indicates that imported merchandise has been produced with forced or indentured labor. 

Reportedly, a Customs officer based at the United States Embassy in Beijing determined that the factory used forced child labor on its assembly line.  In an agency press release, Customs Commissioner Raymond Kelly stated that under pressure from private groups and Congress, the Customs Service has stationed officers in several foreign embassies and stepped up investigations of foreign factories where possible.

November 30, 2000

U.S. and Singapore Begin FTA Negotiations

Talks between the United States and Singapore regarding a Free Trade Agreement (FTA) will begin during the week of December 4.  Negotiations are scheduled to take place in Washington, D.C. over the next three weeks.  IDS understands that the North American Free Trade Agreement (NAFTA) is likely to be the model. 

Textiles and apparel will be addressed during these negotiations under the guidance of Deputy Chief Textile Negotiator Caroyl Miller on behalf of the United States.  Based on the latest available statistics, for the twelve months ending September 2000, Singapore is the fortieth largest supplier of textiles and apparel to the U.S. market with shipments valued at nearly $353 million.

November 28, 2000

NAFTA Accelerated Tariff Eliminations Remove Duties on Certain Footwear from Mexico

In a notice published November 27, 2000, the Office of the U.S. Trade Representative (USTR) announces the list of products from Mexico for which the United States has agreed to accelerate the elimination of duties under the terms of the North American Free Trade Agreement (NAFTA).  All but two of the thirty-two items listed are articles of footwear classified under Chapter 64 of the Harmonized Tariff Schedule.  Currently, these products (from Mexico) are assessed the lower NAFTA duty rate, which ranges from two to six percent.  Effective January 1, 2001, these goods will be duty-free.

November 28, 2000

CITA Releases Flexibility Adjustments for Brazil

Effective November 29, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to adjust the limits of the following categories for swing and carryover: 

November 27, 2000

USDA Begins Process to Exempt Qualifying CBTPA/AGOA Apparel from Cotton Fee

In a November 27, 2000 Federal Register notice, the U.S. Department of Agriculture (USDA)'s Agricultural Marketing Service (AMS) published a proposed amendment to the regulations related to the Cotton Research and Promotion Act and seeks public comment on the same.  The proposed changes would exempt qualifying imports of apparel under either the Caribbean Basin Trade Partnership Act (CBTPA) or the Africa Growth and Opportunity Act (AGOA) from payment of the Cotton Fee. 

The purpose of the proposed change is to avoid multiple assessment on U.S. produced cotton which is exported and then imported back into the U.S. as apparel merchandise.  Since U.S. cotton producers pay the cotton fee on their crop, assessing the fee on imports of apparel containing that same cotton would amount to "double-taxation."  A similar exemption already exists for qualifying 807A apparel, but the regulations must now be formally amended to include the new Harmonized Tariff Schedule (HTS) break-outs which were created for the CBTPA and AGOA programs. 

AMS will  consider any comments received by to December 27, 2000 prior to issuing the final rule.  However, assuming that the proposed exemption is in keeping with the interests of the general public, the interim rule provides an immediate effective date of November 28, 2000.

In cooperation with AMS, U.S. Customs is already working to expedite the full implementation of this exemption for CBTPA and/or AGOA apparel.  Sources are optimistic that the re-programming of Customs systems will be completed by the end of the year.

November 24, 2000

U.S. Foreign Sales Corporations Still Under Fire; EU Requests WTO Authorization for Retaliatory Duties

On November 17, 2000, only one day after President Clinton signed into law changes to the U.S. tax code with respect to Foreign Sales Corporations (FSCs), the European Union (EU) made clear that the dispute is not satisfactorily settled.  In keeping with the agreed upon procedures, the EU submitted two requests to the World Trade Organization (WTO) -- one formally seeking the suspension of concessions (i.e. the permission to assess penalty duties) including an "indicative" list of products, and a second requesting the establishment of a compliance panel to examine whether the new U.S. law is consistent with its WTO obligations and the recommendations of the dispute settlement panel. 

The basis of the original dispute settlement case was the EU contention that the special tax status of FSCs is a violation of the WTO's Agreement on Subsidies and Countervailing Measures.  In a statement issued on November 17, 2000, the European Commission asserts that, "the new law not only maintains the violations found by the WTO in the FSC case but may even aggravate them."  

No further action will be taken until the compliance panel has ruled on the WTO legality of the new U.S. law.  However, the EU has already drafted its initial list of products on which it would seek retaliatory duties, if and when so authorized by the WTO.  If the compliance panel finds in favor of the EU, the WTO would then announce the amount of retaliation which the EU may pursue. 

The EU is seeking damages in the amount of $4.043 billion dollars -- a staggering amount of trade which completely dwarfs the amount of retaliation authorized by the WTO in favor of the U.S. in the cases of beef hormones and bananas.  At this point, the EU's "indicative list products" simply shows whole chapters of the Harmonized Tariff Schedule (HTS).  If needed, the final list of products would draw specific articles (at the six-digit HTS level) from the chapters indicated.  Several textile and apparel chapters appear on the EU's initial list:

• Chapter 51: Wool, fine and coarse animal hair; yarn and fabrics of horsehair
• Chapter 52: Cotton
• Chapter 54: Man-made filaments
• Chapter 57: Carpets and other textile floor coverings
• Chapter 61: Articles of apparel and clothing accessories, knitted or crocheted
• Chapter 62: Articles of apparel and clothing accessories, not knitted or crocheted
• Chapter 63: Other made up textile articles, sets; worn clothing and worn textile articles; rags
• Chapter 64: Footwear, gaiters and the like; parts of such articles

November 24, 2000

Mexico Implements New Sectoral Development Programs

On November 20, 2000, Mexico expanded its Programas de Promocion Sectorial (PROSEC) or Sectoral Development Programs to include certain textile and apparel items.  The program establishes special, reduced duties for materials, machinery or other foreign inputs imported into a maquiladora in Mexico, where the final product is intended for export to the U.S. or Canadian market. 

In part, these sectoral programs are intended to ease the January 1, 2001 implementation of Article 303 of the North American Free Trade Agreement (NAFTA).  Under Article 303, Mexico will treat any maquiladora the same as any other domestic enterprise for the purposes of non-NAFTA inputs.  This means that duties will be owed to Mexican Customs for foreign inputs.  Currently, materials and machinery imported by a maquiladora are duty-free.  For goods exported to the U.S. or Canada before January 1, 2001, the Mexican maquiladora need not pay import duties on foreign inputs.  For those goods currently in production, but exported after January 1, 2001 (i.e. after Article 303 takes effect), the reduced duty rates will be assessed by Mexican Customs. 

The sectoral programs apply only to goods whose ultimate destination is Canada or the United States, and only to non-NAFTA qualifying products.  All merchandise which enters the U.S. under of the Tariff Preference Levels (TPLs) is potentially affected, if those goods are manufactured in a maquiladora. 

As an example, let's take a closer look at production processes for a pair of man-made fiber trousers manufactured in a maquiladora in Mexico.  All cutting and assembly processes take place in Mexico, but the trousers do not qualify for NAFTA treatment because imported Korean fabric is used.  Currently, the fabric may be imported by the maquiladora duty-free.  Provided the annual U.S. limit for TPL1 (non-NAFTA qualifying cotton and man-made fiber apparel) is available, the trousers are also duty-free into the United States.  For the same pair of trousers exported after January 1, 2001, Mexican import duties will be assessed on the Korean fabric but at the lower PROSEC rate.  Of course, in both cases, if TPL1 is already fully utilized, U.S. Customs will assess Column 1 duties on the trousers when imported into the United States.

Neither NAFTA Article 303 nor the sectoral programs apply for merchandise manufactured or assembled in a Mexican maquiladora and intended for a market other than the U.S. or Canada.  For these goods, the special duty-free status of the maquiladores will remain intact.

November 21, 2000

U.S. Releases September 2000 General Import Data

The September 2000 U.S. General Import data was released on November 21, 2000.  Total textile and apparel imports in the month of September 2000 were 2,862.9 million SME valued at $6,728.0 million.  This represents an increase of 253.2 million SME, or 9.70 percent, in quantity and an increase of $516.8 million, or 8.32 percent, in value from the 2,609.7 million SME valued at $6,211.2 million imported during September 1999.

Total textile and apparel imports for the year ending September 30, 2000 were 32,259.3 million SME valued at $70,280.0 million.  This represents an increase of 4,685.8 million SME, or 16.99 percent, in quantity and $7,857.5 million, or 12.59 percent, in value over the 27,573.5 million SME valued at $62,422.5 million imported during the previous twelve month period.

 Year Ending September 30, 2000 U.S. General Imports (in Millions)

November 21, 2000

Port Correction Expected for Dominican Republic Trousers Quota

Officials from the Committee for the Implementation of Textile Agreements (CITA) confirm that U.S. Customs is in the processing of "re-counting" the quota charges for entries from the Dominican Republic in Category 347/348/647/648, Cotton and Man-made Fiber Trousers.  Evidently, some goods which qualified for duty-free, quota-free entry under the Caribbean Basin Trade Partnership Act (CBTPA) have been mistakenly charged against the specific limit for that category.  The effective date of the new CBTPA benefits was October 2, 2000.  If needed, a series of port corrections will be applied to re-credit any quota which was erroneously charged.  Most of this merchandise entered the United States through the Miami, Florida port.  In the end, this exercise is not expected to free up any significant amount of quota since the category was already highly utilized prior to October 2, 2000.

November 21, 2000

ILO Governing Body Urges Action Against Burma; U.S. Evaluating Policy Options

On November 16, 2000, by a majority vote, the Governing Body of the International Labor Organization (ILO) adopted a resolution aimed at compelling the Government of Myanmar (Burma) to eliminate the use of forced labor.  For the first time, this resolution invokes Article 33 of the ILO Constitution and calls upon each member state to "take such action as it may deem wise and expedient" to ensure Burma's compliance with relevant ILO conventions.  The decision comes on the heels of a report from an ILO technical cooperation mission to Myanmar and subsequent debate last week.  The vote signals that the Governing Body determined that it was not satisfied that the actions taken by Myanmar met the recommendations of the 1998 Commission of Inquiry. 

The body's resolution is to formally take effect on November 30, 2000.  Among other measures, the ILO recommends that its constituents "review their relations with Myanmar and take appropriate measures to ensure that such relations do not perpetuate or extend the system of forced or compulsory labor in that country."  IDS understands that Clinton Administration officials are now considering what steps they can and should take in light of the ILO resolution.  One option reportedly under review is to urge U.S. apparel importers to voluntarily pull out of Myanmar.

November 21, 2000

ILO Convention on Worst Forms of Child Labor Enters Into Force

The International Labor Organization (ILO)'s convention addressing the worst forms of child labor, No. 182, came into force on November 19, 2000.  This is one-year after the date on which it was ratified by at least two ILO member countries.  To date, fifty-one countries, including the United States, have ratified the convention which calls for "immediate and effective action to prohibit and eliminate" the worst forms of child labor, defined as slavery, debt bondage, prostitution, pornography, forced recruitment in armed conflict, drug trafficking and hazardous work for persons under the age of 18.  

November 20, 2000

USTR Announces Guyana Fully Eligible for CBTPA Benefits

In a notice published November 21, 2000, the Office of the U.S. Trade Representative (USTR) announces the determination that Guyana is making substantial progress toward implementing and following the customs procedures required by the Caribbean Basin Trade Partnership Act (CBTPA).  Effective November 9, 2000, therefore, imports of eligible products from Guyana qualify for the enhanced CBTPA trade benefits.  Guyana is the eleventh CBI country designated as fully eligible for these benefits, joining Belize, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Nicaragua and Panama.  

November 20, 2000

CITA Announces 2001 Quota Limits for Select Countries

The Committee for the Implementation of Textile Agreements (CITA) continues to announce the restraint levels for the year 2001 for select countries.  In addition to those already released, on November 21, 2000, CITA will publish the 2001 quota limits for Bangladesh, Fiji, Indonesia, Macau, and Malaysia.  As in the past, IDS will provide clients with a compilation of the 2001 quota limits in December. 

November 17, 2000

U.S. and Macau Sign Anti-Transshipment Cooperation Agreement

IDS understands that the United States and Macau recently signed an anti-transshipment cooperation agreement.  The U.S. and Hong Kong have had a similar agreement in place since 1997.  Specific details about the U.S.-Macau Memorandum of Understanding (MOU) will be reported as information becomes available.

November 17, 2000

AGOA Benefits Expected for Select Countries By Year's End

Although U.S. Customs has not yet fully implemented the textile and apparel benefits under the African Growth and Opportunity Act (AGOA) for any country, IDS understands that Kenya, Mauritius, and Madagascar are expected to be certified as fully eligible before the end of the year.  

On the other hand, the pending Generalized System of Preferences (GSP) review underway for Swaziland threatens to preclude that nation from the AGOA programs, as well as suspend it from the GSP program.  At issue is a industrial relations act which took effect in August that holds workers financially responsible for any strike-related property damage or loss of income incurred by the company.  Representatives from the International Labor Organization (ILO) are currently in Swaziland working to resolve this issue.  The United States has set the deadline of December 1 for a determination of Swaziland's GSP (and tangentially AGOA) eligibility.

November 17, 2000

APEC Leaders' Forum Urges New Trade Round Begin in 2001

On November 16, 2000, the leaders of the Asia-Pacific Economic Cooperation (APEC) countries concluded their two-day summit in Brunei.  The leaders of APEC's twenty-one member countries meet annually to review multilateral trade matters.  The meeting in Brunei is the last time that President Clinton will lead the U.S. delegation.  Jump-starting the next round of world trade talks topped the agenda for the meeting.  Led by Malaysia, the developing nations insisted on seeing an agenda before setting a date.  In the end, a compromise was reached that both the agenda and the initiation of the talks will be achieved in 2001.  [APEC members are: Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guniea, Peru, the Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, the United States and Vietnam.]

November 17, 2000

Clinton Visits Vietnam; Hails New Bilateral Labor Accord 

President Clinton traveled on to Vietnam from Brunei, delivering a speech on November 17, 2000 at Vietnam National University in Hanoi.  Clinton is the first American president to ever visit Hanoi.  The White House describes the aim of the trip as that of expanding cooperation between the United States and Vietnam to further "normalize" relations.  Although already signed, the U.S.-Vietnam Bilateral Trade Agreement awaits Congressional approval before it may enter into force.  The President also highlighted that the U.S. is still seeking the fullest possible accounting for American POW/MIAs.

Also on November 17, 2000, the U.S. and Vietnam signed a Memorandum of Understanding (MOU) establishing a program of cooperation and a dialogue on labor matters.  Beginning next month , the U.S. anticipates it will provide $3 million for technical assistance programs in six specific areas:

• skills training and employment services
• social insurance and safety nets
• employment of the disabled
• industrial relations and labor law
• child labor, focusing on street children and child trafficking
• workplace education and prevention programs on HIV/AIDs

On a related matter, the White House announced that Vietnam also ratified the International Labor Organization (ILO)'s Convention on the Elimination of the Worst Forms of Child Labor.  

November 17, 2000

Customs Publishes Technical Correction to Regulations

On November 15, 2000, the U.S. Customs Service formally published a series of technical corrections recently made to Title 19 of the Code of Regulations (CFR).  These corrections stem from amendments to the U.S. Harmonized Tariff Schedule (HTS) primarily due to the implementation of the Caribbean Basin Trade Partnership Act (CBTPA).  The details covered in the November 15 Federal Register notice have already been reported to the public and the ports via Customs' Administrative Message, TBT-00-023-01. 

November 17, 2000

San Francisco Court Grants Stay in Saipan Lawsuit

On November 3, 2000, the U.S. Court of Appeals in San Francisco granted an emergency stay to a Hawaii court's ruling which would have sent the lawsuit on behalf of Saipan garment workers and several U.S. retailers to Saipan for trial.  Several of the original defendants in the case have subsequently joined a multimillion dollar settlement agreement which mandates independent monitoring of their Saipan contractors.  The remaining defendants in the case are: Gap Inc., Dayton Hudson (Target/Mervyns), J.C. Penney, Lane Bryant, Levis, Talbots, Abercrombie and Fitch and Brooks Brothers.  At issue before the courts is who has jurisdiction over the case.

November 17,2000

Trade Deficit Commission Concludes Work Without Consensus

On November 14, 2000, the Trade Deficit Commission released a report containing separate recommendations from its Republican and Democratic members.  Congress requested the formation of the panel, which convened seventeen months ago, to study the impact of the long-standing U.S. trade deficit.  Chairman Murray Weidenbaum acknowledged "significant differences" between the committee's members, who split along party lines on most issues.  The Democrats assert that labor and environmental issues should be part of any future trade negotiations, while the Republicans contend that developing countries will refuse to participate in any negotiations which cover those topics.

November 17, 2000

CITA Announces 2001 Quota Limits for Select Countries

The Committee for the Implementation of Textile Agreements (CITA) continues to announce the restraint levels for the year 2001 for select countries.  In addition to those already released, on November 20, 2000, CITA will publish the 2001 quota limits for Belarus, Korea, Laos, and the Philippines.  As in the past, IDS will provide clients with a compilation of the 2001 quota limits in December. 

November 16, 2000

U.S. and Singapore Launch Negotiations for a Bilateral Free Trade Agreement

On November 16, 2000, President Clinton and Singapore's Prime Minister Goh Chok Tong announced that the United States and Singapore will enter into negotiations for a U.S.-Singapore Free Trade Agreement.  The agreement will mark the fifth such agreement for the United States, and the first with an Asian country.  (The other U.S. free trade agreements are with Canada, Israel and Mexico).

The agreement is to be modeled after the recently signed, but not yet ratified, U.S.-Jordan Free Trade Agreement.  Like the Jordan agreement, the pact with Singapore is expected to contain provisions on labor and the environment.  The FTA will eliminate tariffs on all goods over time, cover substantially all services sectors, specifically seek to develop electronic commerce, protect intellectual property rights, and include safeguard and dispute settlement mechanisms. 

In 1999, Singapore was the tenth largest trading partner and export market for the United States; the United States is Singapore's largest market.  Trade between the two countries last year totaled $34.4 million.   According to a U.S.-Singapore Trade Fact Sheet issued by the Office of the U.S. Trade Representative (USTR), most of that trade is in high-technology sectors such as medical equipment or telecommunications.

Based on the latest available data, for the twelve months ending August 31, 2000, Singapore ranks as the thirty-ninth largest U.S. supplier of textiles and apparel; the thirty-first largest U.S. supplier of apparel alone.  The bulk of apparel currently exported from Singapore destined for the U.S. market is Cotton and Man-made Fiber Knit Tops (34.69 percent of Singapore's exports) and Cotton Trousers and Shorts (19.29 percent of Singapore's exports), all of which are subject to quota restrictions.

November 16, 2000

CITA Asks for Comments Regarding Extending Exemptions for Foreign Interlinings; Available For the Special Access Program and the Outward Processing Program

In a notice published on November 17, 2000, the Committee for the Implementation of Textile Agreements (CITA) solicits public comments regarding the proposed extension of the exemption which allows foreign interlinings to be used in the manufacture of suits under both the Special Access Program (SAP) and the Outward Processing Program (OPP).  Currently, certain non-U.S.-formed interlinings, described as chest type plate, "hymo" piece or "sleeve header" of woven or weft inserted warp knit construction of coarse animal hair or man-made filaments, qualify as findings and trimmings under a temporary amendment to the SAP (also extended to the OPP).  These interlinings must be cut in the United States and used in the manufacture of men's/boys' and women's/girls' wool and man-made fiber suits and suit-type jackets in Categories 433, 435, 443, 444, 633, 635, 643, and 644.  The temporary exemption now in place is set to expire on December 31, 2000.  CITA intends to continue the exemption for two additional years, until December 31, 2002. 

November 16, 2000

President Signs Law Repealing FSC Tax Provisions; EU Reportedly Not Satisfied

Earlier today, President Clinton signed into law H.R. 4986, the "FSC Repeal and Extraterritorial Income Exclusion Act of 2000," intended to head off any further confrontation with the European Union (EU) in the dispute pending before the World Trade Organization (WTO).  The EU initiated the dispute settlement case claiming that the U.S. Foreign Sales Corporation provisions violated the WTO Agreement on Subsidies and Countervailing Measures.  The panel ruled in favor of the EU, recommending that the U.S. undertake certain revisions to its tax code.  If the U.S. had either failed or chosen not to act, under the next phase of the dispute, the WTO was expected to authorize the EU to assess retaliatory duties equivalent to the amount of damages.  Although not certified by the WTO, the EU contends that figure to be $4 billion annually.  The EU, reportedly, is not satisfied with the changes enacted by H.R. 4986.  However, a procedural agreement reached between the U.S. and the EU calls for a WTO review of the law before any decision authorizing retaliation may be made.

November 16, 2000

EU Requests Establishment of WTO Dispute Settlement Panel to Examine U.S. Practices with Respect to Trademarks in Cuba

In a notice published on November 17, 2000, the Office of the U.S. Trade Representative (USTR) notifies the public of the establishment of a new Dispute Settlement Panel (DSP) before the World Trade Organization (WTO), as requested by the European Union (EU).  The EU's specific complaint involves a section of the 1999 Department of Commerce appropriations act which concerns the registration or enforcement, by Cuban entities or their successors, of trademarks, trade-names, or commercial names that are substantially similar to trademarks, trade-names, or commercial names associated with businesses confiscated without compensation by the Cuban government, without the previous consent of the previous owners of the copyrights.  The EU contends the U.S. law may be inconsistent with U.S. obligations under the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs). 

November 16, 2000

Federal Trade Commission Seeks Comments on New Generic Fiber Name for "Synterra"

In a notice published on November 17, 2000, the Federal Trade Commission (FTC) requests comments on the designation of a new generic fiber name for a product manufactured by Cargill Dow, LLC.  Cargill suggested the name of "synterra" for the fiber, described as polylactic acid or polylactide (PLA).  Cargill applied to the FTC on August 28, 2000 for a new fiber name and definition.  The manufacturer claims that PLA can combine certain advantages of natural fibers with those of certain synthetic fibers; and that the fiber has unique properties which differentiate it from all other recognized and listed synthetic and natural fibers.  

November 16, 2000

Vietnam Industry Plans to Open Office in the United States

The Vietnam National Textile and Garment Corporation (Vinatex) announced that it plans to open a representative office in New York, in order to take full advantage of the recently signed U.S.-Vietnam Trade Agreement.  The textile and apparel industry in Vietnam is one of the country's key economic sectors, currently fueled primarily by exports to the European Union (EU).  In addition to laying the groundwork for the establishment of a New York office, Vinatex will also send a delegation to San Francisco, Los Angeles and Seattle at the end of November to promote its products.  Clients are reminded that until the U.S. Congress (i.e. the 107th Congress which convenes in January of 2001) ratifies the bilateral trade agreement, Customs will continue to assess the higher Column 2 duty rates on all imports from Vietnam.

November 16, 2000

USTR Announces Outcome of "Out-of-Cycle" 301 Reviews

On November 8, 2000, the Office of the U.S. Trade Representative (USTR) announced the outcome of "out-of-cycle" Special 301 reviews for Italy, El Salvador, Poland, Ireland, and the Bahamas.  Special 301 reviews examine the adequacy and effectiveness of intellectual property protection in individual countries.  USTR maintains a "Priority Watch List" and a "Watch List" which names those countries where improvements are needed or desired.  As a result of the current review, Italy and Poland were removed from the Priority Watch List; Ireland was removed from the Watch List; and El Salvador and the Bahamas were not placed on the Watch List.  

Intellectual property protection is one of the eligibility requirements incorporated into the Caribbean Basin Trade Partnership Act (CBTPA).  With the potential to impact the new preferential benefits for apparel under the CBTPA, it is encouraging that USTR found both El Salvador and the Bahamas to be taking satisfactory steps towards improving copyright protections.  

November 16, 2000

CITA Announces 2001 Quota Limits for Select Countries

The Committee for the Implementation of Textile Agreements (CITA) continues to announce the restraint levels for the year 2001 for select countries.  In addition to those already released, on November 17, 2000, CITA will publish the 2001 quota limits for Sri Lanka.  As in the past, IDS will provide clients with a compilation of the 2001 quota limits in December. 

November 16, 2000

CITA Releases Flexibility Adjustments for Hong Kong

Effective November 17, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to adjust the limits of the following categories for swing and special shift: 

November 16, 2000

CITA Releases Flexibility Adjustments for India

Effective November 17, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to adjust the limits of the following categories for swing and carryforward : 

November 16, 2000

USTR Africa Growth and Opportunity Act Guide Available on Web

As previously reported, the Office of the U.S. Trade Representative (USTR) prepared an Africa Growth and Opportunity Act (AGOA) Guide which compiles all of the available information about the law and its implementation to date.  Those interested may now access this publication via USTR's web site, http://www.ustr.gov.

November 15, 2000

CITA Releases Flexibility Adjustments for Macau

Effective November 16, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to increase the limits of the following categories for carryforward : 

November 14, 2000

Customs Re-Issues Instructions to Ports Implementing CBTPA Benefits

On November 6, 2000, U.S. Customs issued TBT-00-023-01, Updated Implementation Information for the Caribbean Basin Trade Partnership Act (CBTPA) for Textile and Apparel Products.  This notice supercedes the original port directive, TBT-00-023, which was issued on October 20, 2000.  Subsequent corrections and/or clarifications to the first set of interim regulations are now incorporated in the instructions to the Port Directors.  Clients may access a copy of the latest notice by clicking on the globe icon above.

Among the changes made are the clarification that a visa is not required for CBTPA qualifying goods.  This is an issue that caused considerable confusion until officials from the Committee for the Implementation of Textile Agreements (CITA) directed Customs to drop the visa requirements.  Another significant difference is the change in effective date for the CBTPA benefit for imported brassieres.  The original directive stated that this preference could not be claimed until October 1, 2001.  The updated TBT-00-023-01 clarifies that the correct implementation date is October 1, 2000. 

Of the CBTPA textile and apparel benefits outlined in the Trade and Development Act of 2000, instructions have not yet been issued to implement the Tariff Preference Level (TPL) for apparel made from regionally formed fabric made of U.S. yarn (although the TPL for regionally made T-shirts is already in place).  Additional steps are also needed before the folklore and short supply benefits can be fully implemented.  The President delegated authority for decisions affecting both of the latter provisions to CITA.

November 14, 2000

EU Council Approves List of Products for Stage Three Integration

On November 9, 2000, the Council of the European Union (EU) adopted the list of products proposed by the Commission on July 12, 2000 for the third stage of integration under the World Trade Organization (WTO)'s Agreement on Textiles and Clothing (ATC).  Under the terms of the ATC, eighteen percent (18%) of imports, based on 1990 trade, are scheduled to be liberalized (or removed from quota restrictions) on January 1, 2002.  The approved list will be notified to the WTO before the end of the year.

According to the EU, the 65 categories of textile and clothing products included on the final list make up just over eighteen percent of the trade based on 1990 data, but the same products make up almost twenty-two percent of total EU textile and apparel imports in 1999.  Not counting China, whose accession to the WTO is still pending, the proposal will eliminate 37 bilateral quotas maintained by the EU on fellow WTO members.  All remaining quotas will be eliminated on January 1, 2005.

Products on the list include underwear, gloves, parkas and anoraks, nightwear, skirts, as well as several yarn, fabric, and home furnishing items.  The final approved list includes three fiber categories -- synthetic and artificial monofilament, and twine/cordage -- which were added to the Commission's original list of July 12, 2000.

The Council also adopted several directives calling for bilateral market access negotiations between the EU and third countries.  As stated in the Council's press release, "As the largest textiles and clothing exporter in the WTO and the world's largest exporter of textile products, the EU has a strong interest in the effective liberalisation of textiles trade by all trading partners."

November 14, 2000

European Union Eliminates Textile Quotas on Croatia

On November 9, 2000, the European Union (EU) initialed an agreement with Croatia on trade in textiles and apparel products.  Signaling an important step toward promoting closer trade and economic relations with Croatia, effective January 1, 2001, the EU will eliminate the quantitative restrictions currently applied to imports from Croatia.  In return, Croatia will take steps to harmonize its technical regulations and standards with those of the EU.  

November 14, 2000

Commerce Will Issue Import Licenses for Reduced Duty Rates on Selected Wool Fabrics

In an Automated Broker Interface (ABI) message dated November 7, 2000, U.S. Customs notifies the importing community about the implementation of the Tariff Rate Quota (TRQs) for worsted wool fabrics established by the Trade and Development Act of 2000.

Two new breakouts in the U.S. Harmonized Tariff Schedule (HTS) have been created for worsted wool fabrics: 1) 9902.51.11 for fabrics with average fiber diameters greater than 18.5 microns; and 2) 9902.51.12 for fabrics with average fiber diameters of 18.5 microns or less.  On an annual basis, 2.5 million square meter equivalents (SMEs) may enter the U.S. at the reduced duty rate of 19.3 percent under HTS 9902.51.11; and 1.5 million SMEs may enter the U.S. at the reduced duty rate of 6 percent under HTS 9902.51.12.  The fabric must be imported to make men's or boy's wool suits.  The TRQs will be available to qualifying fabric importers/suit manufacturers on a calendar year basis (at the same levels) for 2001, 2002, and 2003.

The Department of Commerce will allocate the usage of the TRQs to qualifying manufacturers suits by issuing import licenses.  Effective January 1, 2001, a nine digit wool license number, duly issued by Commerce, will be required for entries processed under tariff number 9902.51.11 and/or 9902.51.12.  The nine digit number will consist of a "W" in the first position, followed by "01," "02," or "03" to indicate the year of the license, and six additional identifiers assigned by the Department of Commerce. 

November 9, 2000

Outlook for Trade Matters in the 107th Congress

With the outcome of the presidential election still hinging on the vote recount in Florida, the 107th Congress is already taking shape.  There are number of changes in the U.S. House and Senate that are likely to affect the United States' trade policy next year.  The razor-thin majorities definitely indicate that it will be difficult for Congress to actively pursue a trade agenda.

House of Representatives

Republicans retain control of the House - but with an even smaller majority than that held by the 106th Congress.  Dennis Hastert (R-IL) is expected to remain Speaker of the House.  All of the members of the House Ways & Means Subcommittee on Trade, where trade legislation must begin, were re-elected.  A vigorous battle is expected over the chairmanship of the full Ways & Means Committee, where Bill Thomas (R-CA) is mounting a challenge against the ranking Republican member, Phil Crane (R-IL).  Sources speculate that whoever loses of the chairmanship of the full committee is likely to become (or remain) the chairman of the Trade Subcommittee.

United States Senate

The 107th Senate will be evenly divided, 50-50, between the Democrats and Republicans.  With respect to trade policy, the Senate Finance Committee has lost both its Republican Chairman and its top-ranking Democrat.  Senator Roth (R-DE)'s re-election bid failed, and Senator Moynihan (D-NY) retired from Congress.  At this time it appears that Senator Grassley (R-IA) will assume the chair, and Senator Baucus (D-MT) will hold the ranking minority position. 

November 9, 2000

Update of IDS Special Analysis of the Trade and Development Act

IDS has updated its special Analysis of the Trade and Development Act.  Clients may view the latest version of this report by clicking on the globe icon above.  This edition incorporates all of the information recently released by U.S. Customs with respect to the implementation of the Caribbean Basin Trade Partnership Act (CBTPA) and the Africa Growth and Opportunity Act (AGOA) provisions of the new law.  Samples of each region's Certificate of Origin form are also included in the document's expanded appendices.

November 9, 2000

Advisory Committee on Labor Diplomacy Reviews Work To-Date and Next Steps

On November 8, 2000, members of the State Department's Advisory Committee on Labor Diplomacy met to receive and review the Department's initial response to their report, "A World of Decent Work: Labor Diplomacy for the New Century."  A copy of the report is available via the State Department's web site, http://www.state.gov.  The report summarizes the function and organization of "labor diplomacy" and makes a series of six broad recommendations to the State Department.  Committee members suggest that the practice of labor diplomacy be enhanced by:

• increasing the personal role of U.S. ambassadors in labor diplomacy;
• increasing the number and enhancing the status of labor officers in overseas missions;
• developing and expanding a well-trained cadre of labor Foreign Service officers;
• developing a greater role for the Department of Labor in the conduct of the State Department's labor diplomacy program;
• making permanent the Special Representative on International Labor Affairs position;
• continuing recent efforts to sensitize the entire foreign service corps to the "centrality of the mission of advocating core worker rights and strengthening independent trade union movements."

The State Department is now in the process of reviewing the advisory committee's recommendations.  Although there are already several points of agreement, a working party has been formed to further study the plausibility of adopting other recommendations.  The working party is expected to study, finalize and present the Department's official "reaction" to the Secretary by December 15, 2000.  With Madeleine Albright's tenure as Secretary of State drawing to a close, she is eager to move ahead quickly and implement feasible policy changes.  Should the election be decided in favor of Republican George W. Bush, the role of "labor diplomacy" in international affairs is likely to be diminished.

Regardless of the final outcome of the election, the advisory committee's charter runs until May of 2001.  Turning from the hiring, training and promotional policies for labor officers in the Foreign Service, at its next meeting, the committee intends to examine the interagency process with respect to the formation of labor policy.   

November 9, 2000

Labor and Human Rights Issues Subject Burma to International Scrutiny

The governing body of the International Labor Organization (ILO) convened its 279th Session on November 2, 2000.  The meetings in Geneva are scheduled to continue until November 17, 2000.  High on the agenda are issues of forced labor, freedom of association and globalization. 

A report from an ILO technical cooperation mission recently returned from Burma will serve as the basis for debate regarding that nation which is to take place next week.  In 1998, a Committee of Inquiry found forced labor in Burma to be "widespread and systematic."  Unless ILO members are satisfied that Burma taken concrete steps to comply with the committee's 1998 recommendations, the ILO may implement additional measures on November 30, 2000, designed to heighten the pressure for compliance.  Among the steps being considered is an recommendation to the ILO's constituents that they review their relations with Burma and take bilateral steps to ensure that relations do not perpetuate or extend the system of forced labor in that country.

In the United States, the Clinton Administration and Members of Congress are both taking a critical look at labor conditions, human rights abuses, and the continued suppression of democracy in Burma.  The State Department will shortly deliver its annual report on conditions in Burma to the President.  Speaking to U.S. labor leaders yesterday, Secretary of State Madeleine Albright specifically cited Burma as a post where foreign service officers should have an integral understanding of labor issues.  And, as reported recently, Senator Harkin (D-IA) and Congressman Lantos (D-CA) introduced legislation calling for sanctions on Burma specifically to ban U.S. imports of textile and apparel merchandise. 

November 9, 2000

WTO Continues to Grow; Oman Welcomed as 139th Member

Effective today, the Sultanate of Oman officially joins the World Trade Organization (WTO).  Following the WTO's General Council approval on October 10, 2000, Oman's Minister of Commerce and Industry, Maqbool Ali Sultan signed the Protocol of Accession, completing the process, which began in 1996.

As a full-fledged member of the Geneva-based organization, Oman's trade in textiles and apparel are now governed by the WTO's Agreement on Textiles and Clothing (ATC).  This means that Oman will join the phase-out of textile quotas already in progress.  Currently, the U.S. restricts imports of Cotton and Man-made Fiber tops, jackets, and trousers from Oman.  Although none of these products have yet been removed from quota, Oman may now take advantage of the ATC's enhanced growth-on-growth provisions, as well as the more limited safeguard provisions provided under the terms of the ATC.  A special IDS Country Profile Report, examining Oman's current trade and the implications of its WTO membership will be available shortly.

November 7, 2000

Customs Issues Corrections to CBI and AGOA Interim Regulations

In a pair of notices to be published on November 8, 2000, U.S. Customs issues "corrections" to the interim regulations published on October 5, 2000.  Those regulations implemented the new preference programs for textile and apparel imports from beneficiary countries of the CBI and Sub Saharan Africa regions.  As with the original interim regulations, the effective date for these changes is retroactive to October 1, 2000.  For the most part the revisions represent only minor technical corrections.  However, among the more noteworthy changes to the CBI regulations are:

• the removal of a parenthetical statement originally included in the definition of "assembled in" which read, "(that is, thread, decorative embellishments, buttons, zippers, or similar components) that are not considered to be components for the purposes of assembly under the text."  Customs "reconsidered this matter and now believes that inclusion of this parenthetical limiting language... was in error because in some contexts it may be inconsistent with applicable judicial precedent as regards what may be considered a component for assembly purposes."
• the removal of the word "wholly" from the term "wholly assembled" which appears in the regulatory text to reflect the terms of the newly created subheading in the Harmonized Tariff Schedule of the United States (HTSUS) of 9820.11.18 (809+), because the word "wholly" does not appear in the text of the HTSUS subheading.  Within the same provision, the regulatory text likewise contains the phrase "or the United States" after the words "assembled in one or more CBTPA beneficiary countries, " which is not included in the HTSUS text (and is, therefore, also removed).
• the removal of the reference to "Caribbean yarn" from block 7 of the Textile Certificate of Origin (all benefits stem from the use of U.S. yarn only).  The corrected Textile Certificate of Origin is included with the correction notice.

There are fewer revisions made to the AGOA interim regulations.  So far, no Sub Saharan African country has been found fully eligible for benefits under the act.  Nevertheless, one of the corrections to the AGOA interim regulations is the removal of the same parenthetical limiting language from the definition of "assembled in" (the exact language is shown in the first item listed above).  

Clients are reminded that U.S. Customs is seeking public comments on both the CBI or AGOA interim regulations.  The deadline for written submissions is December 4, 2000.

November 7, 2000

Make-Over for ELVIS?

U.S. Customs sources are optimistic that the Electronic Visa Information System (ELVIS) may be upgraded and/or expanded by the end of the year.  Currently, only Singapore is fully operational on ELVIS -- the need for paper visas has been eliminated, and the electronically transmitted visas are relied on exclusively.  

U.S. Customs is "testing" ELVIS with ten other countries, meaning that both paper and electronic visas are required for textile and apparel shipments.  Those countries are: Bangladesh, China, Hong Kong, Indonesia, Korea, Malaysia, the Philippines, Sri Lanka, Taiwan, and Thailand.  While many of these countries are ready to go paperless like Singapore, many more are eager to begin testing ELVIS.  To date, U.S. Customs has denied all requests for changes or additions to ELVIS because of the technical limitations of the current computer system. 

November 7, 2000

CITA Releases Flexibility Adjustments for Indonesia

Effective November 9, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to adjust the limits of the following categories to reverse, in part, special shift previously applied: 

November 7, 2000

CITA Releases Flexibility Adjustments for the Slovak Republic

Effective November 9, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to adjust the limits of the following categories for swing and carryover:

November 7, 2000

CITA Announces 2001 Quota Limits for Select Countries

The Committee for the Implementation of Textile Agreements (CITA) continues to announce the restraint levels for the year 2001 for select countries.  In addition to those already released, on November 8, 2000, CITA will publish the 2001 quota limits for Nepal, Pakistan, U.A.E. and Uruguay.  As in the past, IDS will provide clients with a compilation of the 2001 quota limits in December. 

November 6, 2000

U.S. Customs Releases New "Apparel Terminology" Guidelines

Earlier today, the U.S. Customs Service posted a new "Informed Compliance Publication," entitled "Apparel Terminology Under the HTSUS," to its web site.  U.S. Customs' Office of Regulations and Rulings prepared this publication as a brief guide for classifying apparel under Chapters 61 and 62 of the Harmonized Tariff Schedule of the United States (HTSUS).  The guidelines are intended to assist importers and other interested parties to determine the correct classifications for apparel merchandise, and therefore also find the duty rates and applicable quota categories.  The bulk of the 32-page report consists of a glossary of concise definitions for apparel terms.  The report appears to update to the "Category Guidelines" which were last issued more than a decade ago.  Clients may access a copy of the publication by clicking on the globe icon above.

November 6, 2000

AGOA Implementation Guidebook Available from USTR

The Office of the U.S. Trade Representative (USTR) has issued an Africa Growth and Opportunity Act (AGOA) implementation guide, which compiles all of the conditions of eligibility and outlines how the law works.  The manual covers textile and non-textile benefits and explains procedures such as the annual review process, which will determine whether countries stay on the list of qualifying beneficiaries.  The AGOA handbook was released as part of the Africa Forum 2000, a biennial meeting organized by the Africa Club, an association related to the World Bank and the International Monetary Fund.  Officials from both USTR and U.S. Customs addressed Forum attendees last week.  USTR sources state that the manual will be posted to the USTR web site some time this week. 

While a handy reference tool, the guidebook summarizes only the information currently available to the public.  Clients are reminded that AGOA benefits for textile and apparel merchandise have yet to be implemented for any Sub Saharan Africa country.  One of the eligibility criteria for the quota- and duty-free benefits is that each Sub Saharan African country must be individually certified as having an "effective" visa system to guard against illegal transshipments.  Although no countries have been certified at this time, IDS understands that Kenya, Lesotho, Mauritius, Madagascar, and South Africa are expected to be the first beneficiary countries named fully eligible. 

November 6, 2000

CITA Releases Flexibility Adjustments for Egypt

Effective November 7, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to increase the following limit for carryover: 

November 6, 2000

CITA Releases Flexibility Adjustments for Thailand

Effective November 7, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to adjust the limits of the following categories, variously, for carryforward, carryforward used, carryover, swing and special shift:

November 6, 2000

CITA Releases Flexibility Adjustments for the Dominican Republic

Effective November 8, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to apply adjustments to the following categories for swing and special shift: 

November 6, 2000

CITA Releases Flexibility Adjustments for Pakistan

Effective November 8, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to adjust the limits of the following categories for special shift:

November 6, 2000

CITA Announces 2001 Quota Limits for Select Countries

The Committee for the Implementation of Textile Agreements (CITA) continues to announce the restraint levels for the year 2001 for select countries.  In addition to the earlier notice regarding Bahrain, on November 7, 2000, CITA will publish the 2001 quota limits for Brazil, Bulgaria, Colombia, Czech Republic, Egypt, Hungary, Kuwait, Macedonia, Mexico, Poland, Qatar, Singapore, Slovak Republic, Thailand and Turkey.  As in the past, IDS will provide clients with a compilation of the 2001 quota limits in December. 

November 3, 2000

First Entries of CBTPA Qualifying T-Shirts Processed by U.S. Customs

On November 2, 2000, U.S. Customs processed the first entries of outerwear T-Shirts from one or more of the eligible countries of the Caribbean Basin Trade Partnership Act (CBTPA).  Under the terms of the Trade and Development Act of 2000, a limited quantity of qualifying goods made of regionally formed fabric made with U.S. yarn may enter the U.S. duty-free.  As of this morning, a total of 1,710 dozen qualifying T-Shirts are charged against the 4,200,000 dozen limit established for the time period of October 1, 2000 to September 30, 2001.  Interested clients may track the TPL's usage on a daily basis by accessing the data through the "flag" marked "CBTPA" on the "Current Quota Utilization: Country Selection" page of the IDS web site.

November 3, 2000

New Legislation Seeks to Ban Imports of Textiles and Apparel from Burma

On October 26, 2000, Senator Tom Harkin (D-IA) introduced S.3246, to prohibit the importation of any textile or apparel article that is produced, manufactured, or grown in Burma.  Representative Tom Lantos (D-CA) introduced the measure's companion bill, H.R. 5603, in the House of Representatives on October 30, 2000.  The legislation would ban the importation of any textile or apparel article (covered in Chapters 50-63 of the Harmonized Tariff Schedule) that is produced, manufactured, or grown in Burma unless the President determines and certifies to Congress that the Government of Burma has made "substantial progress" toward:

• reversing the persistent pattern of gross violations of internationally-recognized human rights and worker rights;
• implementing democratic government, including the release of all political prisoners, developing a dialogue with opposition groups (including Aung San Suu Kyi and the National League for Democracy), and holding free and fair elections;
• full cooperation with U.S. counter-narcotic efforts.

If these conditions are not satisfied, the sanctions called for by the bill would take effect 15 days after the date of enactment.  As the 106th Congress is preparing to close, the measure is unlikely to reach the floor of either chamber this year.  However, Senator Harkin can be expected to re-introduce this or similar language when the 107th Congress convenes in 2001.

November 3, 2000

EU Provisionally Agrees to Lift Quota Restrictions on Sri Lanka

In early October, the European Union (EU) and Sri Lanka met for consultations regarding increased access to EU markets.  In exchange for commitments from Sri Lanka to bind its tariffs on textile products, the EU agreed to additional flexibility for 2000 quota limits and to suspend all quota restrictions on goods from Sri Lanka beginning on January 1, 2001.  The EU reserves the right to re-impose the restrictions if Sri Lanka fails to meet its obligations.

November 2, 2000

CITA Releases Flexibility Adjustments for Bangladesh

Effective November 3, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to adjust the quota limits of the following categories for swing, special shift, and carryforward:

November 1, 2000

China Textile Agreement Extended for One Year; WTO Working Party Meets to Review China's Accession

U.S. officials confirm that during meetings this week, the U.S. and China signed a one-year extension of the current bilateral textile agreement. The extension continues the same quotas and growth rates. However, this agreement means that Carryforward increases will be available for 2000 quotas. U.S. officials state that this extension was signed to facilitate a smooth transition in case the World Trade Organization (WTO)'s Working Party on China's Accession does not reach a consensus before the end of 2000.  However, CITA officials are careful to assert that the Clinton Administration supports China's membership in the WTO as soon as possible.  

Ostensibly, the U.S. and China met to conduct bilateral consultations for the second round of talks regarding transshipment allegations.  No agreement was reached on this issue.

The Working Party on China's Accession is scheduled to reconvene on November 2, 2000 for another session.  The task before the Working Party is that of negotiating and drafting the protocol documents which must be submitted to the trade body's General Council.  The committee's September meetings ended in a stalemate which prompted high level political intervention by both the United States and the European Union (EU) to keep the process on track.  It is encouraging that the committee is now ready to meet again, although it now seems unlikely that China will officially join the WTO before the end of the year.  In addition to the WTO General Council's approval, China's own legislature must ratify the step.  It is only after thirty days from the time that China's legislature gives the go ahead that China will become a full-fledged member of the Geneva-based organization.

The draft report issued at the conclusion of the Working Party's September meetings clarifies how certain textile provisions will be implemented upon China's accession.  For example, the committee agreed that the base levels "notified" to the WTO under the ATC will be the quantitative restrictions in place on the day prior to China's accession.  The growth provisions stipulated by the ATC will then be applied as appropriate each year.  This means that existing quota levels are likely to set the limits for the first year of China's WTO membership, i.e., growth rates will not be applied retroactively.  The committee also reached agreement on the consultation and application processes for textile safeguard measures. 

Beyond the textile and apparel sector, language covering the difficult issues of anti-dumping, transparency, safeguard mechanisms, and technical barriers to trade all remain to be completed.  These meetings of the Working Party are scheduled to conclude on November 8, 2000. 

November 1, 2000

CITA Denies Turkey's Request for Quota Consultations

IDS understands that the Government of Turkey recently requested consultations with the Committee for the Implementation of Textile Agreements (CITA) to discuss a broad range of quota issues.  However, in the absence of a specific agenda, U.S. officials declined to meet with the Turkish textile delegation.  Industry sources continue to report rumors that Turkey will be receiving additional flexibilities for some 2000 quota limits, including the Cotton Trousers and Slacks sublimit, Category 347 T/ 348 T.  All of the increases available for this category in 2000, as permitted under the terms of the U.S.-Turkey bilateral agreement, have already been requested and applied.  It is unlikely that the U.S. will authorize any additional flexibilities without first holding consultations.  At this time, no meetings are scheduled.

November 1, 2000

CITA Requests Comments on Cambodian Labor Law and Standards

In a notice published November 2, 2000, the Committee for the Implementation of Textile Agreements (CITA) solicits public comments and/or data or information regarding labor conditions in Cambodia's garment sector.  This information is requested in preparation for CITA's determination as to whether working conditions in the Cambodian textile and apparel sector substantially comply with Cambodian labor law and internationally recognized core labor standards.  If the United States determines that Cambodia is in substantial compliance with these standards, each of the quota limits on U.S. apparel imports from Cambodia will be increased for 2001 (potentially by up to 14 percent).  The deadline for the submission of comments is November 15, 2000.  U.S. officials must make their decision regarding next year's quotas by December 1, 2000.  Clients interested in further information should contact IDS.

November 1, 2000

CITA Releases Flexibility Adjustments for Malaysia

Effective November 2, 2000, the Committee for the Implementation of Textile Agreements (CITA) directs Customs to adjust the limits of the following categories for carryover, carryforward, swing, special swing and special shift:

November 1, 2000

Washington Post Article Highlights Recent Cat and Dog Fur Legislation

An article appearing in the October 31, 2000 Washington Post sums up the activity surrounding the recent passage of legislation banning the import of articles made with cat and dog fur.  The Humane Society is touting the bill's passage (as part of the Tariff Suspension and Trade Act of 2000) as a significant triumph, despite the fact that retailers and importers supported the ban.  Clients may access a copy of the article by clicking on the globe icon above.

November 1, 2000

Holiday Season Draws Near; A Dozen Quotas "On Hold" or Already Closed for 2000

The 2000 quota limits continue to fill rapidly.  The following table highlights those categories which have already embargoed, and categories with limits more than 90 percent filled as of October 31, 2000.