"By initiating this restriction, the government will send a strong message that it will not allow China, with its pegged currency and its state-owned and subsidized textile sector, to gain unfair advantage of the U.S. textile and apparel market," said Senator Collins. "This is one step toward leveling the playing field that pits domestic manufacturers against Chinese importers that enjoy an unfair advantage because the Chinese government continues to manipulate its foreign trade practice and policy."
The China Textile Safeguard establishes quotas that limit the import of Chinese certain textiles and apparel. The textile industry reports that Chinese imports of these goods have increased between 32 and 96 percent. The safeguard quotas limit increases over the coming year to 7.5 percent unless China and the U.S. negotiate a different allowance. These restrictions follow the terms that the countries agreed upon as part of the World Trade Organization accession agreement.
The Northern Textile Association says that Maine textile producers will benefit because the entire industry will be more protected from unfair Chinese competition.