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Home >> Business
UPDATED: 09:25, October 25, 2004
US moves to restrict Chinese sock imports
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The Bush administration has decided to impose restrictions on the imports of Chinese-made socks, a move to protect US textile workers before the upcoming president election.

President George W. Bush made the decision after the US Committee for the Implementation of Textile Agreements (CITA) ruled that sock imports from China are disrupting US markets and there is a risk of further harm. The committee said it is seeking talks with China to try to ease or avoid any interference in the market.

According to World Trade Organization rules, upon a request for consultation, China must restrict its sock shipments to no greater than 7.5 per cent above the number that entered the United States during the first 12 months of the most recent 14 months preceding the request for consultations.

The rules also say consultations with China will begin within 30 days of notification of the request. The two countries then have 90 days to reach a resolution.

If the sides fail to reach agreement, the United States can unilaterally impose quotas for a year, limiting the growth of Chinese imports in the category to 7.5 per cent.

It is the second time for the US Government to use the restrictive measure to block Chinese textiles based upon the agreement's quotas on Chinese knit fabric imports. Dressing gowns and bras were affected last November.

US textile and clothing manufacturers also submitted a petition for imposing quotas on cotton and synthetic trousers, wool trousers, cotton and synthetic knit shirts and underwear on October 12.


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