98-34780. Request for Public Comments on Bilateral Textile Consultations with the Government of Pakistan

[Federal Register Volume 63, Number 251 (Thursday, December 31, 1998)]
[Notices]
[Pages 72288-72289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34780]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Request for Public Comments on Bilateral Textile Consultations 
with the Government of Pakistan

December 24, 1998.
AGENCY: Committee for the Implementation of Textile Agreements (CITA).

ACTION: Notice.

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FOR FURTHER INFORMATION CONTACT: Ross Arnold, International Trade 
Specialist, Office of Textiles and Apparel, U.S. Department of 
Commerce, [phone]. For information on categories for which 
consultations have been requested, call [phone].

SUPPLEMENTARY INFORMATION:

    Authority: Section 204 of the Agricultural Act of 1956, as 
amended (7 U.S.C. 1854);

[[Page 72289]]

Executive Order 11651 of March 3, 1972, as amended.

    On December 24, 1998, under Article 6 of the Uruguay Round 
Agreement on Textiles and Clothing (ATC), the Government of the United 
States requested consultations with the Government of Pakistan with 
respect to combed cotton yarn in Category 301, produced or manufactured 
in Pakistan.
    The purpose of this notice is to advise the public that, if no 
solution is agreed upon in consultations with the Government of 
Pakistan, the Government of the United States reserves its right to 
establish a twelve-month limit of not less than 5,262,665 kilograms for 
the entry and withdrawal from warehouse for consumption of combed 
cotton yarn in Category 301, produced or manufactured in Pakistan.
    A summary statement of serious damage, actual threat of serious 
damage or the exacerbation of serious damage concerning Category 301 
follows this notice.
    Anyone wishing to comment or provide data or information regarding 
Category 301 or to comment on domestic production or availability of 
products included in this category is invited to submit 10 copies of 
such comments or information to Troy H. Cribb, Chairman, Committee for 
the Implementation of Textile Agreements, U.S. Department of Commerce, 
Washington, DC 20230; ATTN: Donald R. Foote. The comments received will 
be considered in the context of the consultations with the Government 
of Pakistan.
    Because the exact timing of the consultations is not yet certain, 
comments should be submitted promptly. Comments or information 
submitted in response to this notice will be available for public 
inspection in the Office of Textiles and Apparel, room H3100, U.S. 
Department of Commerce, 14th and Constitution Avenue, NW., Washington, 
DC.
    Further comments may be invited regarding particular commentary or 
information received from the public which the Committee for the 
Implementation of Textile Agreements considers appropriate for further 
consideration.
    The solicitation of comments regarding any aspect of the 
implementation of an agreement is not a waiver in any respect of the 
exemption contained in 5 U.S.C.553(a)(1) relating to matters which 
constitute ``a foreign affairs function of the United States.''
    The United States remains committed to finding a solution 
concerning this category. Should such a solution be reached in 
consultations with the Government of Pakistan, further notice will be 
published in the Federal Register.
    A description of the textile and apparel categories in terms of HTS 
numbers is available in the CORRELATION: Textile and Apparel Categories 
with the Harmonized Tariff Schedule of the United States (see Federal 
Register notice 62 FR 66057, published on December 17, 1997). 
Information regarding the 1999 CORRELATION will be published in the 
Federal Register at a later date.
D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile 
Agreements.

0Summary of the Statement in Support of Request for Consultations Under 
Article 6 of the ATC
Combed Cotton Yarn--Category 301
December 1998
Import Situation and Conclusion
    The USG has determined that the increase in imports of combed 
cotton yarn for sale, Category 301, has caused serious damage, or 
actual threat thereof, to the industry in the United States producing 
like and/or directly competitive yarn for sale.
    Imports of the subject yarn from all sources increased by 91.3 
percent in January-August 1998 over January-August 1997, an increase of 
9,828,000 kilograms. During this same period, domestic shipments 
dropped substantially, falling 14,174,000 kilograms, 14.2 percent below 
the January-August 1997 level. Domestic unfilled orders fell by 15.8 
percent and domestic production declined 10.2 percent from January-
August 1997 to January-August 1998 as inventories increased 145.9 
percent.
    Increasing low-valued imports put pressure on domestic prices and 
margins. Capacity utilization declined as shipments and production 
fell, causing severe margin pressure as fixed costs had to be allocated 
over fewer sales, which cut gross margins. Compounded with the pressure 
to lower prices, mills' profitability evaporated. Operating margins 
shrank as companies engaged in the production and sale of the subject 
merchandise, resulting in declining profitability in January-August 
1998 compared to the same period in 1997 on the product in question. 
Two mills fell victim to the price squeeze and shut down. Production 
worker employment in the defined industry lost 340 jobs during January-
August 1998.
    The USG concluded that the increase in imports in 1998 has caused 
serious damage to the industry as reflected in the industry's declining 
production and shipments, the substantial increase in inventories, the 
industry's deteriorating financial performance, and the significant 
fall in unfilled orders and employment.
    The USG has also determined that serious damage to this industry is 
directly attributable to a sharp and substantial increase in imports of 
the subject yarn from Pakistan. Imports from Pakistan have increased 
significantly, both absolutely and relative to domestic production and 
world imports, thereby increasing Pakistan's share of U.S. imports and 
the U.S. market. Pakistan's low-valued imports adversely affected U.S. 
domestic prices.
    U.S. imports of the subject yarn from Pakistan increased to 
3,612,652 kilograms in January-August 1998, 283.2 percent above the 
942,756 imported during January-August 1997. For the year-ending 
October 1998, imports from Pakistan surged to 4,908,094 kilograms, 
164.3 percent above the 1,857,294 kilograms imported for the year-
ending October 1997.
    The USG further determined that increases in imports of the subject 
yarn from all sources constitute the actual threat of serious damage or 
the exacerbation of serious damage to the defined domestic industry 
producing a like and/or directly competitive product, and that, based 
on sharp and substantial increases in imports of the subject product 
from Pakistan, such threat is attributable to Pakistan.
[FR Doc. 98-34780 Filed 12-29-98; 12:19 pm]
BILLING CODE 3510-DR-F