ITA Seeks Comments on Establishing an AD Monitoring Program for Imports of Textiles and Apparel from Vietnam

The ITA states that it is inviting the public to provide input by 5:00 p.m. on December 27, 2006 on the monitoring program and identify issues or concerns that they believe are deserving of the ITA's attention as implementation of the program proceeds.

(In late September, the U.S. Trade Representative and the Secretary of Commerce sent letters to Senators Dole and Graham regarding their constituents' concerns over the possible granting of Permanent Normal Trade Relations (PNTR) to Vietnam and its effect on the domestic textile industry once Vietnam joins the WTO. The letters offered to conduct biannual reviews to determine whether there is sufficient evidence to initiate an antidumping (AD) investigation of any textile or apparel goods from Vietnam and, if so, whether critical circumstances exist that would allow for preliminary duties to be applied retroactively.

The letters had also stated that the Department of Commerce (DOC) would begin a comprehensive program to monitor U.S. imports of textile and apparel products from Vietnam. As a result of this monitoring process, the DOC may then self-initiate AD investigations with respect to relevant products, if the domestic industry supplies certain data regarding the existence of material injury. See ITT's Online Archives or 11/27/06 news, 06112715, for BP summary of these letters.)

Focus on Sensitive Apparel, Consider Initiating AD Investigations, Etc.

The ITA explains that while it seeks comment on which textile and apparel goods should be subject to monitoring, items in the following product groups have been identified as being of special sensitivity: trousers, shirts, underwear, swimwear, and sweaters.

In addition to monitoring import volumes and values, the ITA will develop, in close cooperation with interested parties, production templates to assist it in its biannual evaluation of imports of these products to determine whether sufficient evidence exists to initiate an AD investigation consistent with U.S. law and the U.S.' international obligations under the WTO.

ITA Seeks Comments from Interested Parties, Seeks Answers to Certain Questions

The ITA states that it is aware that a program such as this one has an impact on a broad array of parties (e.g., domestic textile and apparel producers, retailers, workers, importers, and the Government of Vietnam) and is seeking input from all interested parties who wish to comment. The ITA adds that this request for comments is the first step in its outreach to interested parties and will be followed up with other outreach efforts.

As part of its request for comments, the ITA has provided a list of issues and questions on which it is requesting assistance and comment. The ITA stresses that this is not a questionnaire and additional comments are welcome. The ITA asks that commenters be as specific as possible, especially with respect to product categories and HTS numbers.

The ITA is seeking comments on the following areas (see notice for complete list of questions):

Consultative process with interested parties. Among other things, the ITA asks for advice on the establishment of consultative mechanisms and outreach efforts to interested parties. The ITA also asks whether there are advisory panels or industry groups that the ITA should meet with on an ongoing basis.

Products. With regard to the five sensitive product groups (trousers, shirts, underwear, swimwear, and sweaters), the ITA asks if there are particular products that should be monitored or could act as an indicator or bellwether for the category group as a whole? In addition, among other things, the ITA asks what other textile and apparel categories or HTS numbers should be monitored?

Production templates. As part of the monitoring system, the ITA may find it necessary to develop production templates to assist it in evaluation of textile and apparel imports from Vietnam. As part of this process, the ITA would likely examine information from market economy countries that it believes are most similar to Vietnam. In this regard, the ITA asks what countries would be most appropriate for it to examine.

Domestic industry information. As part of its monitoring, the ITA will examine a broad range of public information on the domestic textile and apparel industry (e.g., production, capacity utilization, employment). The ITA asks interested parties what information on the domestic industry should be examined as part of this process? The ITA also asks what sources of information should be used?

Biannual evaluation process. The ITA states that every six months, for the duration of the monitoring program, the ITA will evaluate the information it has complied as part of this effort. The ITA asks what information is most important for it to consider in the process? The ITA also asks if it should undertake intermittent, mid-term or staged analyses of import and market trends?

Public dissemination of information. The ITA asks what information should be disseminated to the public as part of this process (e.g., import data, U.S. industry information)?

Additional comments. The ITA asks for additional comments and other concerns that interested parties wish it to be aware of as it develops the monitoring program.

(See ITT's Online Archives or 11/08/06 news, 06110810, for BP summary of the WTO General Council's approval of Vietnam's WTO membership.)

ITA Notice (FR Pub 12/04/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-20545.pdf

BP Note

According to a November 21, 2006 Wall Street Journal editorial, with regard to Vietnam, the U.S. textile industry is trying to protect its interest not in the U.S. but in Central America. Those Central American plants buy U.S. yarn, so the textile lobby is trying to block exports from Vietnam to protect its own exports to Honduras (WSJ, dated 11/21/06, www.wsj.com )