US to investigate low-end Chinese apparel imports
4/17/2005
The US administration last week decided to launch investigation in the import of six categories of apparels from China following a strong demand from its apparel industry to re-impose restrictions under WTO safeguard measures, according to an Internet report.
In the event of re-imposition of quota restrictions on Chinese low-end apparels, Bangladesh would be among the likely beneficiaries, sources said.
The US apparel industry associations requested similar investigations in fourteen other categories of Chinese products with a view to re-imposing quotas on imports from China under the safeguard measures.
The US safeguard actions against China may have a dramatic impact on global apparel trade, mainly benefiting Bangladesh, India, Pakistan, Sri Lanka and Indonesia, the report added.
Local garments exporters said they are monitoring the proceedings relating to application of safeguard measures by the US administration on certain categories of Chinese apparel.
"Such measure will be a great relief for Bangladeshi apparel exporters," said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Annisul Huq.
Annis said they are also trying to convince the US administration about the need for such safeguard measures to help garment industry and the employment of millions of people in poor countries like Bangladesh and Cambodia.
As a clear sign that US administration is speeding up procedures, three official notices were already placed in the Committee for the Implementation of Textile Agreements (CITA) requesting comments on possible quotas on cotton knit shirts, cotton trousers, cotton and man-made fiber underwear.
The CITA could release its first decision in about six weeks. All investigations could finally be completed by the end of May.
Quoting the US market analysts, the BGMEA said the January-February 2005 statistics showed that China had a massive growth in various categories of garments exports.
In the men's and boy's cotton and man made fibre woven shirt categories, Chinese export rose by 284 per cent in the first quarter. But shipments from India and Bangladesh were up only by 28 per cent.
Bangladesh and India, which are considered as low-cost specialists of woven shirts, will be benefited in men's and boys' cotton and man-made fiber woven shirts categories if quotas are re-imposed.
Bangladesh exported 1.75 million dozen of woven shirt to US in January-March 2005 against 1.37 million of dozen during the same period of the previous year. The country possesses about 13 per cent of the US market share in these categories.
Bangladesh along with Indonesia and Cambodia will be benefited due to same measure to another important category like cotton trousers, denim jeans or khakis.
Chinese export to the US market rose to nearly 1,521 per cent in the first quarter while exports from Bangladesh, Indonesia and Cambodia increased by only 76 per cent, 56 per cent and 36 per cent respectively.
Bangladesh exported 2.4 million of dozen of trousers in January-March of 2005 against 1.37 million of dozen during the same period of the previous year. Bangladesh holds nearly 5.06 per cent of the US market share in the category.
AI
