[Federal Register Volume 62, Number 93 (Wednesday, May 14, 1997)]
[Notices]
[Pages 26479-26480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12676]
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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS
Request for Public Comments on Bilateral Consultations with the
Government of Pakistan
May 8, 1997.
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, (202) 482-4212. For information on categories for which
consultations have been requested, call (202) 482-3740.
SUPPLEMENTARY INFORMATION:
Authority: Executive Order 11651 of March 3, 1972, as amended;
section 204 of the Agricultural Act of 1956, as amended (7 U.S.C.
1854); Uruguay Round Agreements Act.
On April 23, 1997, under the terms of Article 6 of the Uruguay
Round Agreement on Textiles and Clothing (ATC) and the Uruguay Round
Agreements Act, the Government of the United States requested
consultations with the Government of Pakistan with respect to cotton
yarn in Category 301pt. (HTS numbers 5205.21.0000, 5205.22.0000,
5205.23.0000, 5205.24.0000, 5205.26.0000, 5205.27.0000, 5205.28.0000,
5205.41.0000, 5205.42.0000, 5205.43.0000, 5205.44.0000, 5205.46.0000,
5205.47.0000, 5205.48.0000), 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 2,319,944 kilograms for
the entry and withdrawal from warehouse for consumption of cotton
textile products in Category 301pt., produced or manufactured in
Pakistan.
A summary statement of serious damage, the actual threat of serious
damage or the exacerbation of serious damage concerning Category 301pt.
follows this notice.
Anyone wishing to comment or provide data or information regarding
the treatment of Category 301pt. or to comment on domestic production
or availability of products included in Category 301pt. 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: Helen L. LeGrande.
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 comments 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
[[Page 26480]]
Category 301pt. 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 61 FR 66263, published on December 17, 1996).
Troy H. Cribb,
Chairman, Committee for the Implementation of Textile Agreements.
Summary of Statement in Support of Request for Consultations Under
Article 6 of the ATC--Pakistan
Cotton Yarn--Category 301pt.
April 1997
The USG has determined that the increase in imports of yarn for
sale, 85 percent or more by weight combed cotton ring spun, Category
301 Part, 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 64
percent from 1994 to 1996, a net increase of 6.2 million kilograms.
During this time, domestic shipments dropped substantially, falling by
5.1 million kilograms. Orders lost to imported yarns also resulted in a
1.5 percent reduction in production during this period, and caused
inventories to increase sharply, by 50 percent. Increasing low-valued
imports forced domestic margins to fall. Mills scrambled to cut prices
in the last half of 1995 and 1996 to keep the remaining customers they
had not already lost to imports. Despite price cuts, mills continued to
lose orders, with unfilled orders dropping 30 percent from 1994 to
1996.
Capacity utilization declined as production and shipments fell,
causing severe margin pressure as fixed costs had to be allocated over
fewer sales, which cut gross margins. Seventy three percent of the
companies reported declining profitability from 1994 to 1996 on the
yarn in question. Seven mills fell victim to the margin squeeze and
shut down, and production worker employment in the defined industry
lost a total of 767 jobs between 1994 and 1996.
The USG concluded that the increase in imports between 1994 and
1996 was the direct cause of serious damage to the industry as
reflected in the industry's declining shipments, the substantial
increase in inventories, and the significant fall in unfilled orders
and employment.
The USG also determined that serious damage to this industry was
directly attributable to the sharp and substantial increase in imports
of the subject yarn from Pakistan. Imports from Pakistan had 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.
There were no imports of the subject yarn from Pakistan before
1995. U.S. imports of the subject yarn from Pakistan began in May 1995
and reached 471,758 kilograms by the end of 1995. Imports from Pakistan
of the subject yarn surged to 2,319,944 kilograms in year-ending
January 1997, an increase of 392 percent above the total level imported
during 1995.
The USG further determined that the significant increase in imports
of the subject yarn from all sources constituted the actual threat of
serious damage or the exacerbation of serious damage to the defined
domestic industry producing like and/or directly competitive yarn, and
that, based on the sharp and substantial increase in imports of the
subject yarn from Pakistan, such threat was attributable to Pakistan.
[FR Doc. 97-12676 Filed 5-13-97; 8:45 am]
BILLING CODE 3510-DR-F
